The founder of iiNet, Michael Malone, has stood aside from the internet and telecommunications company he launched 20 years ago. According to a report in SmartCompany, iiNet's acting chief executive and chief financial officer, David Buckingham, has taken over Malone’s role, with the move potentially being announced as early as today. The move would potentially pave the way for a merger between iiNet and low-cost rival TPG. Myer chief says no need for merger despite half-year profit slide Myer has reported an 8.1% half-year slide in net profits to $81 million, with aggressive discounting before Christmas eating into the department store chain’s bottom line. Despite the result, Myer chief Bernie Brookes says the company doesn’t necessarily need a $3.2 billion merger with rival David Jones to achieve growth. “If it [the merger] doesn't go ahead, if nothing happens in the next six months, ideally we have two new stores opening, an extension to Myer Melbourne, we've got three refurbishments finished and an exceptional opportunity to really drive the department store business and we have got a robust and growing online business. “I think our top-line growth is certainly on track for 2015 to harvest a lot of the benefits of the money that we have spent.” Federal Treasury job cuts on the cards Outgoing Treasury Secretary Martin Parkinson has said the department would need to slash its workforce by one-third in order to meet budget cuts, despite having already cut staff numbers from a 2011 peak of over 1000. “Clearly, since we don't control the responsibilities given to us by government, change of this magnitude means delivering similar outcomes in a very different manner. “In the past, our response to increased demands was to increase our efforts: by working harder and longer. “Needless to say, this is not sustainable, and it also crowds out any attempts to think differently – and smarter – about prioritising our resources.” Overnight The Dow Jones Industrial Average is up to 16331.0. The Aussie dollar is up to US90.43 cents.
Kevin Rudd has reclaimed the prime ministership after winning a leadership spill of the Australian Labor Party last night, defeating incumbent Julia Gillard 57-45, with Anthony Albanese replacing Wayne Swan as the deputy leader. In his speech following the ballot, Rudd emphasised the business community and young Australians will be key priorities for his government. "Let me say this to Australian business: I want to work closely with you. I’ve worked with you closely in the past, particularly during the GFC and there were some white knuckle moments there, as some of the heads of the major banks will remember," Rudd said. "But we came through because we worked together and I’m saying it loud and clear to businesses large and small across the country, that in partnership we can do great things for the country’s future." Julia Gillard announced she would not recontest her seat at the next election, also saying that while “[gender] doesn't explain everything, it doesn't explain nothing; it explains some things” in terms of the challenges she faced as leader. Carriers demand more backhaul access Competition watchdog the ACCC will begin an enquiry into Telstra’s charges to other carriers for use of its backhaul networks, following complaints from a group of carriers including iiNet, Vodafone and Macquarie Telecom. Backhaul fibre optic networks are used to send calls and data to and from mobile phone base stations and exchanges, with Telstra owning the only cables to some parts of the country. "We need the NBN to change some of its priorities to be able to help us bring competition to Australians," says Vodafone Australia chief executive Bill Morrow. “This is a huge impediment, and you're now going to get customers faster and faster internet access and taxing them if they use it. It ends up being a disproportionate tax as well because for companies like iiNet and Internode, our customers have much higher usage than Telstra customers or Optus customers,” says iiNet chief executive Michael Malone. ATO warning on profit shifting Tax Commissioner Chris Jordan has issued a warning to Australian companies hoping to emulate the tax minimisation strategies of tech giants such as Google and Apple, telling the federal government it needs to do more to stamp out the practice. "They can see what is happening as a result of these international companies taking profit out of the country. They are thinking: 'What functions can we move offshore, what functions can we disconnect and have third-party providers fulfil to put the profit in a low-tax jurisdiction and receive an exempt dividend coming back into the system?'" Jordan says. “That might be their assertion, but we are going to test every single aspect of those structures. We will want to know whether what purports to happen actually happens on the ground… It is one thing to put in place a fancy structure, but it is another to have it tested five years later, because by their nature these schemes are quite, sort of, artificial. “We will be taking a leadership role internationally in addressing the problem, but we need to also look at how changes can be made here. The corporate tax base is under threat. What's happening is unacceptable to the community, the government, and to regulators.” Overnight The Dow Jones Industrial Average is up 1.02% to 14910.14. The Aussie dollar is up to US92.81 cents.
Start-up chief executives shouldn’t pay themselves more than $150,000, according to tech veteran Peter Thiel, prompting local businesses to highlight the benefits of being frugal.
The High Court ruled in iiNet's favour this morning after years of court battles between the ISP and media corporations, saying it was not responsible for the actions of its users who downloaded copyrighted material illegally.
Perth Population: 1.69 million Start-up survival rate: 73.1% (2007 to 2009). While Western Australia is heavily associated with the mining industry, its state capital is playing host to an increasingly diverse start-up sector.
iiNet founder and chief executive Michael Malone has told Australian start-ups “it’s all about the product”, after being named 2011 Australian Ernst & Young Entrepreneur of the Year.
Family-run enterprises have long been the bedrock of Australia’s small business sector. The help, support and familiarity provided by relatives can prove invaluable, not only in the start-up phase, but also in the generational handover of a thriving business.
Mining magnate Andrew Forrest has bumped media mogul Rupert Murdoch off the top spot in this year’s BRW Executive Rich List, with mining companies dominating the list of Australia’s 200 wealthiest executives.
Operating a home-based business is no longer reserved for stay-at-home mums and retirees. Technology has made it incredibly easy for almost any business venture to begin at home.
It’s not often the Taskmaster has to turn to another entrepreneur for advice, but I couldn’t help but pick up on this tip from Michael Malone, the chief executive of iiNet, who appeared in a great interview on StartupSmart yesterday.
You don’t get many firebrand preachers operating out of their mother’s garage. But then Michael Malone was never the standard entrepreneur.