Dun & Bradstreet Australia has today welcomed the release of an Issues Paper by the Australian Law Reform Commission (ALRC) into consumer credit reporting reform as an important step in encouraging competition in the Australian market.

As 2006 draws to a close, business has bleak expectations for the approaching March quarter  '07, with inflationary pressure set to remain and both the sales and profits outlook continuing on their downward spiral.

The annual Christmas credit splurge is expected to result in a near 40% increase in referrals of outstanding debt to Australia's leading collection agency, Dun & Bradstreet.

The New Year brings bleak expectations for businesses across Australia, with executives recording the worst ever profits and the second worst ever sales outlook since the Dun & Bradstreet (D&B) Business Expectations Survey began in 1988  - lower than during the 1991 recession.

Australian business stability is in decline, with companies becoming increasingly likely to experience financial distress and insolvency.

The promptness of Australian business-to-business trade payments have deteriorated over the last quarter to September with the average payment period across all industries now 54 days.

The outlook for Australian businesses heading into the December quarter remains gloomy with businesses expecting a sharp increase in selling prices and lower profits.

D&B Australasia has today confirmed media reports that it will be commencing a process to provide liquidity to the company's two largest shareholders' AMP Capital Investors and D&B Australasian management.

The August D&B Business Expectations Survey, looking ahead to the December quarter 2006, shows that businesses are expecting a disappointing end to the calendar year with all sectors expecting negative growth.

Australian consumers are getting into debt over increasingly smaller amounts and placing additional cash flow pressures on Australian business.

Business is expecting a dramatic increase in selling prices in the December quarter, a sign that inflationary pressure will remain in the Australian economy.

Australian businesses have seen a gradual improvement in the promptness of business-to-business trade payments over the last quarter, but with the average payment period in June still at around 54 days, the pressure is still on as the new financial year gets underway.

Australian businesses continue to feel negative about the economic environment ahead with both interest rates and fuel prices contributing to the poor outlook.

New research shows that consumers who default on low value amounts (below $500) and/or on non-bank credit are a higher risk of defaulting on larger amounts and traditional credit types.

Following a slight recovery in business expectations last quarter, Australian businesses have taken a more negative view of their business environment moving forward according to the latest Dun & Bradstreet  Business Expectations Survey.

Australian businesses believe a reduction in business/company tax rates would have a greater impact on stimulating their business than reducing personal income tax rates, according to the latest D&B Business Expectations Survey.

Companies that have had legal action taken against them are nearly eight times more likely to fail than those that haven't, providing an important early indicator of increased risk for creditors, according to business information analysts Dun & Bradstreet (D&B).

D&B has today announced that it has reached an agreement for a pilot program with the Tax Office to collect debt on their behalf. The agreement follows D&Bs strong relationship with other government departments such as Centrelink.

In the lead up to the federal budget, Australian businesses remain optimistic about the economic climate ahead, according to the latest D&B Business Expectations Survey.As indicated last month, the cautious approach seen over recent quarters is continuing to ease and business confidence is growing.

There has been a continued decline in business to business trade payments this year, signalling greater cash flow and credit risks for business, with small business the most likely to feel the impact.

Australian businesses continue to feel more positive about the economic environment ahead, according to the latest D&B Business Expectations Survey.

Last October, as part of D&Bs campaign to promote debate on reform of Australias credit reporting system, Dr Michael Turner (PhD) from the Information Policy Institute in New York, joined me on a speaking tour across Australia.

In October 2005, Dun & Bradstreet sponsored a speaking tour by Dr Michael Turner who presented research on the benefits of reforming Australia's consumer credit reporting system. Dr Turner is the President of the International Policy Institute based in New York and is the international expert on data and privacy issues.

A brighter outlook for Australian business is emerging with expectations of a recovery in the June quarter 2006.

The impact of fuel prices and the management of cash flow have been identified as two of the most critical issues for Australian businesses over the 2006 calendar year, according to the latest D&B Business Expectations Survey.