Australian business conditions slumped in February, reversing about half of their gains since the federal election in September. After rising to almost three-year highs at the start of the year, weaker sales and the soft jobs market impacted conditions, but business confidence still remained slightly above trend levels in February. Further, the latest Servcorp Australian Business Growth Monitor found 56% of small businesses experienced no revenue growth during the last 12 months. This was up from 51% of businesses in the previous year.
And 67% of small businesses had no change in the number of personnel over the past year highlighting, perhaps, a hesitation to hire new staff.
And while the soft jobs market will impact consumer spending, making it difficult for many businesses, the government is pushing on with its cutting red tape agenda.
The first repeal day will be in the House of Representatives on Wednesday 26 March 2014 and over 9,000 regulations will be scrapped as part of the government’s plan to cut $1 billion in red and green tape costs annually.
The main change affecting small business that I can see is the introduction of legislation that will make the Family Assistance Office responsible for administering the existing paid parental leave scheme. This is delivering on an election promise by the Coalition after small business highlighted the burden of administering the scheme on behalf of the Commonwealth.
Some small businesses will be pleased with the proposed streamlining of government contracting and payments, including the ability for Commonwealth officers to pay for goods and services below $20,000 by credit or debit cards. This will be good for small business cash flow as it bypasses the government’s standard 30 day payment system (which, let’s face it, is often longer than 30 days!). If you are interested in finding out more about repeal day, the government has established its Cutting Red Tape website. I find the website a bit “clunky” (government cost cutting, maybe?) but it is early days and content is added regularly.
Is red tape a problem for your business?
What laws or regulations would you like to see repealed?
