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From the monthly archives: January 2021

We are pleased to present below all posts archived in 'January 2021'. If you still can't find what you are looking for, try using the search box.

What have we learned already this year? My top 5.

Posted on Thursday, January 28, 2021
As we close out the first month of 2021, what have we learned? Here's my top five: The annual inflation level in Australia was reported today at 0.9%, well under the RBA's 2-3% forecast. This means interest rates will remain low for longer. Global growth is looking more positive. The International Monetary Fund has raised its projections for global growth, and is expecting to see “low levels” of COVID-19 across the world by the end of 2022. GDP is expected to grow 5.5% in 2021, an upgrade from 5.2% in October last year. This means the global economy should stabilise, but it could take til the end of next year. JobKeeper will cease at the end of March, but there's been outcry from certain sectors that their recovery will continue to be hampered by the virus long into the future. This will likely force the government to consider offering targeted grants to certain industries such as travel, the arts and hospitality. Share markets globall ... Read the rest of entry »

2021 set to be a super year!

Posted on Saturday, January 23, 2021
In about 5 months’ time, every business that employs staff will face an increase in costs, namely superannuation.   On 1 July, employers have no choice but to provide their employees with the first 0.5% increase in the government’s plan to grow super contributions from 9.5% (as they are now) to 12% by 2026.   But in the current environment, with the effects of COVID still being felt and JobKeeper payments set to cease in March, 0.5% per employee could be a painful pill for some businesses to swallow.   From the employee perspective though, for all the same reasons, perhaps they’d prefer to have this year’s super increase as cash in their pocket?   For an employee on $50,000pa their annual employer super contribution goes from $4750 to $5000. Not a huge increase overall, but would that $250 be put to better use going straight into the pockets of employees, and therefore straight into the economy?   I think it’s an option the federal government sh ... Read the rest of entry »

Happy new year! Or is it?

Posted on Thursday, January 14, 2021
Happy new year and welcome to 2021! But if you thought 2020 was turbulent, brace yourself, things are about to get really interesting.   It’s well known that a million employers nationwide took up the government’s JobKeeper subsidy offering, with 60% of those in Victoria. And despite the ongoing COVID concerns, the feds have stated that as March 2021 ends, so does their stimulus, with JobKeeper ending and JobSeeker reduced. That’s assuming of course, that there’s no third wave (it feels terrifying even just to write it!).   So if you run a business, now is the time to take a step back and examine whether your business can survive in a post-stimulus world, and if so, what it’s going to look like. For example, will you need to cut your staff numbers in order to make ends meet? It’s likely many businesses will, which will lead to a predicted increase in unemployment.   There are also ominous signs coming out of Google, with the search engine reporting a sp ... Read the rest of entry »

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