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The news you need to know: September 3, 2019

- September 3, 2019 2 MIN READ

Stay up to date with all the news that matters to small business owners. Here’s what you need to know on Tuesday, September 3, 2019.

Economy slows, but Treasurer predicts growth ahead

Treasurer Josh Frydenberg has warned the economic growth figures for the June quarter are likely to reveal a slowdown in the economy, However, he urges Australians to remain optimistic, predicting the September quarter will deliver a better result due to income tax cuts and a drop in interest rates.

Frydenberg suggested the escalating trade war between US and China and the federal election had impacted growth.

“With the election falling in the middle of the June quarter and the ongoing impact of trade tensions abroad and devastating floods and drought at home we are expecting soft June quarter results on Wednesday,” Frydenberg said.

The growth slump comes as the Reserve Bank board prepares to meet today. It is expected the RBA will hold the existing interest rate at 1 per cent.

Calls to make all business investment a tax writeoff

Ross Garnaut, the guy who came up with the Hawk government’s tax reforms, says the government should make all business investment an instant tax write-off (rather than depreciate) to encourage business investment.

Speaking to the Financial Review Garnaut commented:

“There would be a very big shift of the tax burden away from those who are making new investments to those sitting on their laurels and paying out dividends or buying back shares, so it would move in the direction the Treasurer wants.”

Consumers overpaying for foreign cash

The ACCC has slammed the big four banks for overcharging customers on foreign exchange services. The ACCC suggests Australian consumers could save millions of dollars a year if they simply shop around.

“Consumers and small businesses tend to default to their usual bank to send money overseas, but this may not be the cheapest option. This is another example where consumers may end up paying more for their loyalty,” the watchdog chairman Rod Sims said.

The ACCC’s report suggests there is a lack of transparency surrounding charges and exchange rates and suggested consumers could have saved as much as $150 million of they had used operators like OFX or TransferWise

 

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