Business owners have a lot on their plate.
From staff, to tax, clients, suppliers, energy, and more. It is hard work running a business.
When looking to finance a business there are a range of products to choose from, it is critical you use the right product for the right purpose.
Below is a bit of a cheat sheet to help you identify what finance to use, and the balancing act you need to consider when looking at different lenders, from big banks, to non-major banks, to private lenders, and fintechs. Each have their time and place, but again it is critical to chose the right lender for your business and match the right product.
If all of that sounds confusing, that is because it is. Fortunately I can help you solve this quickly, if you need any funding for your business please reach out.
Businesses with a turnover of less than $50 million have been given two new tax incentives, which have been backdated to 2022. The Skills and Training Boost, which runs from 29 March 2022 to 30 June 2024, gives businesses a bonus 20% deduction for eligible expenditure on external training of employees by providers registered in Australia. The Technology Investment Boost, which runs from 29 March 2022 to 30 June 2023, gives businesses a bonus 20% deduction for eligible expenditure on the uptake of digital technologies. Assistant Treasurer Stephen Jones said the government wanted to invest in the future of Australian businesses. “The government is investing in small businesses, so they can upskill employees, remain competitive in a rapidly changing technological landscape and take advantage of new opportunities for growth,” he said. “Millions of small businesses that have already invested in new technology [in 2022-23] will now be eligible to make deductions this tax time. It’s great news at a time where small businesses most need cash flow support.” Want to expand? Call me for a loan
Talent-hungry businesses are tightly hanging onto their workers, with the retrenchment rate at record-low levels. In the year ending February, just 1.4% of employees were retrenched, which was the lowest rate since the Australian Bureau of Statistics started keeping records more than half a century ago. By way of comparison, the average retrenchment rate has been 3.8% since 1972, while the highest rate was 7.2% in 1991. Meanwhile, job mobility continues to remain at the highest rate since 2012, after staying at 9.5% for the second consecutive year.
That means 95 out of every 1000 workers switched employers during the year to February, posing a challenge for businesses that are finding it hard to maintain appropriate staffing levels.
Job mobility was significantly higher among younger workers:
Aged 15-24 years: 14.9% changed employer during the year.
Aged 25-44 years: 11.2% changed employer.
Aged 45-64 years: 5.9% changed employer.
Aged 65 years and over: 2.1% changed employer.
A new report into the small business sector has found that 60% of small business owners are self-employed. The Small Business Matters report also found that the flexibility of self-employment was a particularly attractive livelihood option for older people and women. According to the report, 22% of self-employed business owners are aged 60 and over, compared to 9% of employees, while 68% of self-employed women work part-time, compared to 47% of employees. Australia's small business ombudsman, Bruce Billson, said it would be wrong to miscast these people as vulnerable gig economy workers. “Taking on the responsibility of owning and running a small business can be inspired by a range of goals and motivations, an abundance of purpose and meaning, and be rich with unpredictability of challenges and income,” he said. Surprisingly, 43% of small businesses are non-profitable – although this is the lowest share since 2012-13. I can help you get a business loan
The rules around employment for student visa holders have changed as of the new financial year.
Student visa work restrictions were relaxed throughout the pandemic, and temporarily removed in January 2022. The restrictions have now returned – although the work cap has been raised from 40 hours per fortnight to 48 hours.
At the same time, the Temporary Skilled Migration Income Threshold has increased from $53,900 to $70,000. This applies to businesses that want to nominate workers for subclass 482, 186 and 187 visas, and need to ensure overseas workers are paid no less than an Australian worker doing the same work in the same location.
Business should also be aware of other changes that took effect on 1 July:
The PAYG and GST uplift on quarterly payments decreased from 12% to 6%.
The superannuation guarantee increased from 10.5% to 11.0%.
Government-funded paid parental leave increased from 18 to 20 weeks.
Award wages increased by 5.75%.
The national minimum wage increased by 8.6%, from $21.38 to $23.23 per hour.
The monetary cap for recovering unpaid entitlements via the small claims process increased from $20,000 to $100,000.