A daily download of SME, startup, fintech and tax news from around Australia.
Australian small businesses have made financial gains this year but continue to struggle with consumer perception that they’re gradually dying off. As such, consumers are flocking to shop with bigger companies, according to new research. Read on to find out more.
American Express recently commissioned a survey into how small businesses are tracking this year and how consumers perceive them. Small business in this survey include bricks-and-mortar stores, digital start-ups and online-based stores. The study showed that while consumers said they value small businesses, they’re not putting their money where their mouth is.
THE most recent Federal Budget introduced a long-term plan to improve Australia’s competitiveness through realistic company tax cuts.
It is planned that all companies will pay a rate of 25 per cent within a decade — the first step being the reduction to 27.5 per cent from July 1 this year for small businesses turning over less than $10 million.
The fintech sector in Australia is brimming with youth and ambition, with two-thirds of an estimated 250-plus companies less than two years old and four in 10 yet to earn any revenue.
Despite this, a survey undertaken by Fintech Australia and Ernst & Young reveals the companies expect to grow revenue by an average of 200 per cent over the next 12 months, with one in five predicting revenue growth in excess of 500 per cent.
Money is not only kept onshore as opposed to being flushed to international markets, but small businesses help boost our economy and create jobs.
And small businesses are not small forever.
When innovation booms and these businesses flourish, this benefits Australia’s branding and attracts foreign money to us.
AN Adelaide start-up is almost at the end of a $5 million funding round, with some of the money to go towards a local research and development facility.
The ambitious growth plans of PrimeQ, launched just six months ago, will likely see its workforce jump from its current level of 65 to 100 by Christmas.
Risk-averse and tech-backwards bureaucrats are hampering the push for agile and innovative Australian government, according to high-tech start-up firms.
Emerging technology firms say government contracts remain sown up by multinational “dinosaurs” like IBM, SAP and Accenture, despite high-profile stuff-ups, because they are masters of federal government’s painfully bureaucratic tender process.
Uber Australia’s 2016 revenue has doubled to $36 million. The Silicon Valley giant’s local revenue, according to its latest accounts, increased from $18 million last financial year.
But its entity in Australia does not count all the sales. As Uber told the recent Senate inquiry into corporate tax avoidance, it only counts 75 per cent of each transaction in Australia . The rest – 25 per cent of each transaction – is routed through the Netherlands, a low-tax jurisdiction. This entity then pays Uber Australia a fee for providing service support in Australia.
As the Turnbull government seeks parliamentary banking for its $50 billion, 10-year company tax cut plan, new figures show business tax collections at their lowest in five years.
The CEO of £1.4 billion accountancy software giant Xero says London is a world leader in fintech — financial technology — and will remain that way post-Brexit.
Rod Drury, founder and CEO of Xero, told Business Insider during a recent interview in London: “We love the fintech innovation happening in London, it’s absolutely world-class. When you see the apps that are being built here, they will go global. We’re really impressed by the quality of the finch thinking that goes on here.”