Family Businesses in Australia – different and significant: why they shouldn’t be overlooked

20 March 2013

© Commonwealth of Australia 2013
ISBN 978-1-74229-800-9

A lack of a definition and official data
The contribution and mindset of family businesses
The challenges unique to family businesses
Family businesses and the Global Financial Crisis
Beginning the conversation within government

The referral
Submissions to the inquiry
Public hearings
Acknowledgements
A brief historical context
Successful Australian family businesses
Family businesses and migrants
The Australian family farm
Structure of the report

Introduction
The 2004–05 Business Characteristics Survey
Stakeholders' views on the need for a definition
Are family businesses mainly small and medium-sized enterprises?
Table 2.1: Businesses by size (employees)
Table 2.2: Businesses by size (turnover)
Possible definitions of a family business
Are sole traders family businesses?
The possibility or the intention to pass on the business
Should a definition include small and large family businesses?
Public policy reasons for a definition of family business
The committee's conclusions on an Australian definition of family business
Final comment

Introduction
A patchwork of surveys
Submitters' and witnesses' views on the availability and reliability of data
Committee view

Introduction
Key family business characteristics
A long-term mindset—causes and benefits
An aversion to risk
Flexible decision-making
Retaining staff
Community-based and community-oriented
Labour productivity, governance and performance
Final comment

Introduction
Strategies to assist intergenerational business transfers
Barriers to managing succession
Growing expertise in succession management across the family business sector
Is succession necessary?
Committee view

Trading trusts — overview
Figure 6.1: The trust structure
Family trusts in Australia
Figure 6.2: Family trusts and the family group
Legislative issues
Issues relating to Division 7A of the Income Tax Assessment Act 1936
Issues arising out of Division 6 of the Income Tax Assessment Act 1936
Family trusts and capital gains tax
Family law property settlements
The rule against perpetuities

Section 113 of the Corporations Act 2001
Division 83A of the Income Tax Assessment Act 1997

A family business or a small and medium enterprise?
Figure 8.1: Bank lending to business
Access to finance
Access to insurance
The family business sector's response to the global financial crisis

Representing and educating the sector