A daily download of SME, startup, fintech and tax news from around Australia.
As we head into the budget with a focus on tackling big problems like low wages growth and a sluggish economy, it’s vital to consider the impact that small businesses have on the nation’s productivity and growth. After all, the small business sector is the true engine of the economy, with more than 2.2 million businesses making up 99.8 per cent of businesses and employing more than 68 per cent of Australians, or 10.9 million people.
Even small, seemingly insignificant changes to the adoption of technology translate into major productivity levers for the Australian economy.
Opposition leader Bill ShortenHon Bill Shorten MP, Federal Member for Maribyrnong Leader of the Opposition from 13.10.13 has outlined his plans for small business funding in his budget reply speech, circling tax cuts, faster internet and incentives as priorities.
Following a similar model to the instant asset write-off, which was passed yesterday , Mr Shorten announced a Labor government would provide tax breaks for certain investments of all Australian-based businesses.
“We backed a tax cut for small and medium businesses and we will provide an extra 20 per cent tax break for every business that invests in productivity-boosting equipment above $20,000, whether that’s a big manufacturer buying new technology or a tradie getting a new ute,” Mr Shorten said.
Shadow industry minister Kim Carr spent Wednesday chiding his government counterpart – the Minister for Industry, Science and Research Karen Andrews – because she “couldn’t even get the word ‘innovation’ into the Treasurer’s speech.”
We hope that Senator Carr will now spend all of Friday in deep self-reflection, having failed to get the word ‘innovation’ into Labor leader Bill ShortenHon Bill Shorten MP, Federal Member for Maribyrnong Leader of the Opposition from 13.10.13’s budget reply speech.
Tim Dean believes the small business credit crunch is leaving more entrepreneurs knocking on the doors of their family members.
“A startup is a vulnerable piece, it’s embryonic. Interest rates can be 20 per cent or more, while the bank of mum and dad could be at 2 to 3 per cent,” the founder of fintech Credi says.
London | Savvy British fintech players could sweep into the Australian market en masse this year if the open banking regime kicks off in July , jostling with local start-ups and potentially kicking off a round of joint ventures or mergers and acquisitions.
That’s the scenario painted by Ben Styles, general manager of financial services at ASX-listed Xero, who has been central to the Kiwi accounting software company’s engagement with open banking regimes in Britain and Australia.
Tips, comments or suggestions? Let me know in the comments, send me an email or tweet me @simeonduncan.