Update to proposed BIC scheme cuts, it’s not over yet!

As an outcome of the many letters sent by the Fashion and Clothing sector opposing cuts to the last year of the BIC scheme, we can confidently report that the 2 major parties in Opposition (Labor and Greens) and some of the independents have supported the industry by blocking the amendment bill from gaining passage through the Senate.

Abbott has therefore announced that he will patiently continue to negotiate with all of the independent and minor party Senators on each issue to allow passage of the measures originally announced on Budget night and he has until May 2015 to do so.

Pivotal to the outcome of the BIC scheme is the Palmer Party (PUP) who hold 3 Senate seats and in effect control the passage of most of the measures for which the Government is seeking Senate approval.

At this stage PUP have not confirmed or denied any position on the BIC issue as they are more interested in the bigger ticket issues like the $7 medical co-payment and cuts to the mining tax.

I therefore suggest that the BIC scheme will become a bargaining chip which could go either way as the timeline and cost is very small in the larger economic scheme of things. I will keep you informed as and when any further news is worthwhile sharing.

Please contact Gerry Frittmann, Managing Director of TCF Services gerry@tcf.net.au.