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COVID relief is over for business owners, and now the struggle is real Posted on June 20, 2022
We don’t like to focus on the negative, but bear with us on this one. Small business owners currently face government legislated (and industry-led) wage and superannuation increases, increasing energy and supply costs, a tight labour market, increased pressure from the ATO…where can a business owner – who employs Australians and supports the Australian economy – buy a bucket?
Small businesses are now scrambling to prepare to meet the Labor government’s commitment to an increase in minimum wages of 5.2% that was announced on 15 June. In addition, the super guarantee (SG) increase from 10% to 10.5% will occur on 1 July 2022.
Wages have increased organically across many industries too, in particular construction, as a way to retain talent. This is a reflection of the tight labour market.
The rising cost of energy is being felt by many business owners too. One-third of small businesses experienced energy hardship due to COVID, the Small Business Power Research Report from the Council of Small Business Organisations Australia found, and that has left one in five with an energy service debt leading business owners to resort to personal savings as a means of payment.
Business owners are concerned about the ATO’s resumption of tax debt collection as well as meeting business finance and commercial rent obligations.
The smart approach:
The simple starting point is to crunch the numbers harder than ever before. Never has it been more important than to flex your accounting software and accounting team of professionals for full visibility of every dollar in your business.
A good accountant will look holistically at your business and consider where efficiencies can be made, income can be generated, projects can be planned, resources can be structured and, bottom lines can be saved. An accountant can look at your loans, your suppliers, your human resourcing, your technology, your sales and marketing, your tax and finance structure, your infrastructure, your business plan and personal finance goals and then outline where you can save and make money.
If you haven’t got a plan to meet the rising cost of running a business, or a picture of how these increases will impact your cash flow, you need one.
Join our complimentary business workshop on 6 July for more information and strategies. Register here.