object(WP_Post)#10171 (24) {
  ["ID"]=>
  int(46029)
  ["post_author"]=>
  string(1) "5"
  ["post_date"]=>
  string(19) "2019-05-17 16:00:28"
  ["post_date_gmt"]=>
  string(19) "2019-05-17 06:00:28"
  ["post_content"]=>
  string(3719) "

The Federal election is just around the corner and the big question on our minds, and most of our clients’, is how will the election results affect Australian businesses?

In just 10 years, Australia has had seven Prime Ministers, and nine leadership spills*. This has earned us the title of “coup capital of the Pacific”. How charming. Regardless of whether you’re a Labor or Liberal supporter, there’s no argument that this has caused instability & insecurity for businesses large & small across the country. Afterall, it’s difficult to have confidence in any government that can’t maintain faith in their own leader.

The data shows us that when confidence in government drops, so does consumer spending. When consumer spending drops, businesses suffer. Thankfully, the effect hasn’t been crippling due to a relatively healthy international economy and buoyant local economy. However, that looks likely to change. Despite low unemployment & low inflation, we are experiencing extraordinarily low wage growth, and this is driving consumer spending down further.

Many businesses are beginning to feel the effects of this decreased spending, and we will need a decisive, stable government to mitigate the impact.

So, how does each party propose to do this?

Both parties have asserted their dedication to supporting small & medium businesses, however it’s their approach that differs.

Liberal Party:

  • Tax cuts for businesses with less than $50mil turnover
  • Instant asset write-off for businesses with less than $50mil turnover
  • Access to additional funding for SME businesses
  • Increased export opportunities
  • Investment in workforce skill development to strengthen the VET system

Labor Party:

  • Tax cuts for businesses with less than $50mil turnover
  • Instant asset write-off for businesses with less than $50mil turnover
  • Removal of franking credits*
  • Reverse penalty rate pay cuts
  • Introduction of protections against anti-competitive business conduct
  • Extra deterrents to phoenix behaviour*
  • Faster, more reliable internet access for businesses along with internet speed guarantees

What does this mean?

Despite a range of policy differences between the parties, both are offering additional support structures to businesses in order to strengthen them and mitigate the impact of low consumer spending and a slowing international economy. This should mean that regardless of which party comes to power, we will see continued economic growth, increased consumer spending, and secure businesses.

This is good news for most businesses. Post-election should hopefully see a return to “normal”, provided that the winning party is able to prove themselves to have stable leadership, thus inspiring confidence in their ability to lead the nation.

Only time will tell.

" ["post_title"]=> string(51) "What the 2019 Federal Election Means For Businesses" ["post_excerpt"]=> string(0) "" ["post_status"]=> string(7) "publish" ["comment_status"]=> string(4) "open" ["ping_status"]=> string(6) "closed" ["post_password"]=> string(0) "" ["post_name"]=> string(56) "what-the-2019-federal-election-could-mean-for-businesses" ["to_ping"]=> string(0) "" ["pinged"]=> string(0) "" ["post_modified"]=> string(19) "2019-05-17 16:01:42" ["post_modified_gmt"]=> string(19) "2019-05-17 06:01:42" ["post_content_filtered"]=> string(0) "" ["post_parent"]=> int(0) ["guid"]=> string(37) "http://www.coxpurtell.com.au/?p=46029" ["menu_order"]=> int(0) ["post_type"]=> string(4) "post" ["post_mime_type"]=> string(0) "" ["comment_count"]=> string(1) "0" ["filter"]=> string(3) "raw" }

The Federal election is just around the corner and the big question on our minds, and most of our clients’, is how will the election results affect Australian businesses?

In just 10 years, Australia has had seven Prime Ministers, and nine leadership spills*. This has earned us the title of “coup capital of the Pacific”. How charming. Regardless of whether you’re a Labor or Liberal supporter, there’s no argument that this has caused instability & insecurity for businesses large & small across the country. Afterall, it’s difficult to have confidence in any government that can’t maintain faith in their own leader.

The data shows us that when confidence in government drops, so does consumer spending. When consumer spending drops, businesses suffer. Thankfully, the effect hasn’t been crippling due to a relatively healthy international economy and buoyant local economy. However, that looks likely to change. Despite low unemployment & low inflation, we are experiencing extraordinarily low wage growth, and this is driving consumer spending down further.

Many businesses are beginning to feel the effects of this decreased spending, and we will need a decisive, stable government to mitigate the impact.

So, how does each party propose to do this?

Both parties have asserted their dedication to supporting small & medium businesses, however it’s their approach that differs.

Liberal Party:

  • Tax cuts for businesses with less than $50mil turnover
  • Instant asset write-off for businesses with less than $50mil turnover
  • Access to additional funding for SME businesses
  • Increased export opportunities
  • Investment in workforce skill development to strengthen the VET system

Labor Party:

  • Tax cuts for businesses with less than $50mil turnover
  • Instant asset write-off for businesses with less than $50mil turnover
  • Removal of franking credits*
  • Reverse penalty rate pay cuts
  • Introduction of protections against anti-competitive business conduct
  • Extra deterrents to phoenix behaviour*
  • Faster, more reliable internet access for businesses along with internet speed guarantees

What does this mean?

Despite a range of policy differences between the parties, both are offering additional support structures to businesses in order to strengthen them and mitigate the impact of low consumer spending and a slowing international economy. This should mean that regardless of which party comes to power, we will see continued economic growth, increased consumer spending, and secure businesses.

This is good news for most businesses. Post-election should hopefully see a return to “normal”, provided that the winning party is able to prove themselves to have stable leadership, thus inspiring confidence in their ability to lead the nation.

Only time will tell.

Tags: businesses | election | federalelection | smallbusiness | sme |

Leave a Reply

Your email address will not be published. Required fields are marked *