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 »

The new challenge on the horizon: a stimulus-free economy

Posted on Thursday, December 17, 2020
It seems crazy that Christmas is now just over a week away, and we are almost at the end of a chaotic 2020 that no small business owner could have anticipated. We learnt that Corona isn’t just a Mexican beer, Zoom isn’t just the sound a car makes, government = ATM, and small business owners have the ability to pivot quickly in order to counter an existential threat. We’ve also seen the resilience and ingenuity of small business owners everywhere, and it is a trend that will continue into 2021 as those who are creative will be best set up to survive moving forwards. I think it is safe to say that 2021 will bring a different look to most workplaces, and it will be a long time before we see workers returning to the office five days a week. Businesses have seen that you can survive and be successful with more fluid working arrangements, and working from home in some capacity will likely become the new normal.  But there are big challenges on the horizon, not least the end of JobKeeper ... Read the rest of entry »

DO NOT drain your super to buy Christmas presents!

Posted on Wednesday, December 9, 2020
We have seen an amazing recovery from the Australian economy over the past few months, and now we’re seeing some real proof of positivity returning to business as we approach the holiday season.   Survey results from both the ANZ and NAB have shown that business conditions are at a 20-month high, and we are hearing more and more positivity in the feedback about retail conditions and jobs as normality slowly returns to the market.   It ultimately comes down to confidence, and with more small businesses reopening, increasing their trading hours and product offerings, there is plenty of confidence in the economy. That’s not to say that we are back to normal or that everything is perfect, but with many of these businesses like caged lions for much of the year, they are ready to roar given the chance.   I spoke to a florist this week who received government support during the pandemic and was able to pivot their business to an online model, but are now able to add their normal ... Read the rest of entry »