Small Biz Survival: Alarming Cost of Doing Business Down Under
Small Biz Survival: Alarming Cost of Doing Business Down Under
5
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
In a striking revelation, nearly 1.25 million small businesses in Australia teeter on the brink of collapse as increasing living costs gnaw away their profit margins.
During a recent senate hearing on Australia's cost-of-living crisis, Council of Small Business Organisations Australia (COSBOA) director, Adele Sutton, spotlighted the precarious state of the nation’s small enterprises.
Addressing the hearing, chaired by Liberal senator Jane Hume, Ms. Sutton noted that 49 per cent of 2.5 million small businesses are either barely breaking even or running at a loss. She emphasized that when a business fails to break even, the burden primarily shifts onto the owner, often compelling them to dip into personal savings to keep operations afloat. The hearing included notable participants like Australian Restaurant and Cafe Association CEO Wes Lambert and Restaurant and Catering Australia CEO Suresh Manickam.
Sutton attributed this worrisome trend to an unpredictable mix of rising energy costs, burdensome regulatory frameworks, and intricate changes in industrial relations. Remarkably, she highlighted that wage growth has not proportionality matched productivity, fanning the flames of economic strain.
Offering further insights into the cost-of-living turmoil, Suresh Manickam pointed out that the crisis is predominantly driven by four elements: escalating energy prices, heightened interest rates, surging labor costs, and sluggish productivity. Manickam lamented that cafe and restaurant owners are particularly besieged by the government’s convoluted changes in industrial relations laws, resulting in what he described as "IR fatigue."
"These modifications are causing a fundamental and progressively adverse impact," Manickam conveyed, stressing the critical need for energy stability and government intervention to ensure an enduring, sustainable energy infrastructure. While business owners appreciated the government’s recent energy rebate, Manickam insisted that it provided minimal relief. "It’s not even a sugar hit," he remarked, suggesting that more substantial measures are necessary to alleviate the financial pressure on small businesses.
This transformative discussion was originally reported by NewsWire, where the pressing challenges confronting Australia's small business sector were brought to fore, demanding urgent attention and solutions.
Published:Saturday, 17th Aug 2024 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
The Australian Prudential Regulation Authority (APRA) has announced a significant policy change aimed at mitigating risks in the housing market. Effective February 2026, APRA will impose a cap on high debt-to-income (DTI) home loans, limiting such loans to 20% of new home lending. This measure applies to both owner-occupiers and investors, with an exemption for new housing developments. - read more
The Commonwealth Bank of Australia (CBA), the nation's largest lender, has raised concerns about the current high demand for home loans, which is contributing to escalating property prices. CEO Matt Comyn acknowledged that while the bank has benefited from the surge in housing credit, such high levels are unsustainable and could undermine long-term financial stability, housing equality, and market accessibility. He suggested that a more moderate pace of credit growth would be beneficial. - read more
As Black Friday sales gain popularity in Australia, consumer advocates are raising concerns about the financial strain these events place on individuals and families. The allure of significant discounts and the social pressure to participate in these sales have led many Australians to increase their credit card debt, potentially exacerbating financial stress. - read more
The Australian Securities and Investments Commission (ASIC) has recently conducted a comprehensive review of the nation's motor vehicle finance sector, uncovering significant issues that raise concerns about consumer protection and lending practices. - read more
Australia is witnessing a significant shift towards sustainable transportation, as evidenced by a remarkable surge in financing for electric and hybrid vehicles. In 2024, the Australian Finance Industry Association (AFIA) reported that over $6.17 billion was allocated to finance 104,835 electric and hybrid vehicles, marking a 50% increase from the previous year. - read more
Securing finance for any significant purchase can be a challenge, especially when it comes to acquiring a truck for business purposes. Coupled with a less-than-perfect credit score, this task can seem daunting for many Australians. The ripple effects of financial constraints can impede business operations, affecting the lifeline of commercial ventures that rely on transportation. - read more
In the journey to secure a commercial vehicle loan, preparation is key. Just as a vehicle needs to be in perfect condition to hit the road, your loan application requires meticulous attention to detail to ensure a green light from lenders. This article embarks on the essential journey of understanding the critical checkpoints before applying for a commercial vehicle loan. We navigate through the path of prerequisites that pave the way for a seamless approval process. - read more
Buying a truck is a major investment, whether it's for personal use or business purposes. With the plethora of options available in the Australian market, it's important to consider various factors before making a purchase. Your specific needs, budget, lifestyle, and work requirements should be taken into account before making a decision to ensure the truck you buy fits your needs. - read more
For many Australian businesses, purchasing a commercial vehicle is a significant investment that often requires financial assistance. Understanding the intricacies of truck financing is crucial, as the right loan can affect your company's bottom line and operational efficiency. With a plethora of lenders offering myriad loan products, choosing the most advantageous deal can be daunting. - read more
If you're running a business in Australia, choosing the right commercial vehicle loan can be pivotal to your success. Whether you're a small business owner needing a delivery van or a large company expanding your fleet, understanding your financing options is crucial. - read more
Start Here
Get a free truck loan eligibility assessment and compare truck finance and leasing options
without accessing your credit file!!
Knowledgebase
Balloon Payment: A large payment due at the end of a balloon loan, usually after a series of smaller payments.