Grab your dose of the daily news as we unpack the headline stories that affect small business owners. Here’s what you need to know on Thursday, September 5 2019.
Economic growth slows but it’s all good!
Australia’s economic growth figures have been released for the June quarter and economic growth has slid in at a miniscule half a percentage point, with an annual rate of 1.4 per cent. While this is less than half the average annual growth rate, economists say there is still no need for alarm, with the September quarter expected to pick up off the back of interst rate and tax cus. It’s also important to note Australia is now in its 29th consecutive year of positive economic growth – a world record!
Stimulus is coming but you’ll have to wait
Treasurer Josh Frydenberg has told media the government is planning a number of stimulus packages that should kick start the economy – but there’s a catch. Despite calls from the opposition and business owners for an investment scheme, to be put into place now, Frydenberg says we’ll have to wait. The government won’t announce the finer details of the stimulus package until the budget in May 2020. While this will likely protect the government’s plan to return the budget to surplus this financial year.
Small business owners, working on tight margins will face the brunt of the decision.
“We want to see more business investment, and this is a challenge for
productivity in this country,” Frydenberg told the Australian Financial Review.. “So we are having a discussion with key stakeholders about other ways that we can boost investment, and those decisions will be decisions at budget time. That is the sort of timetable we are working.”
Car sales on a downward slide
If you’re in the market to buy a new vehicle, now could be the time to pick up a deal as new car sales continue to plummet. August sales were done 10 per cent on the previous month, making it the worst result since the global financial crisis.
It’s the 17th consecutive month of decline in the car market with sales of new cars down across all vehicles. Federal Chamber of Automotive Industries (FCAI) chief executive Tony Weber suggested tigther finance restrictions are having a significant impact on sales.
“The question needs to be asked about whether the current regulatory approach to financing is appropriate, and if not, what harm it is doing to both the sector and the economy more broadly,” Weber said.