Five Post Election Updates For Business
With a new resident calling The Lodge home, many Australian businesses are wondering what a Labor Government means for them in the immediate election aftermath. No matter which end of the political spectrum you identify with, there’s no denying that the ALP returning to power after a nine year absence will almost certainly mean one thing: change.
While Anthony Albanese has been declared Australia’s 31st Prime Minister, just two seats currently stand between him forming a majority government or not. If not, the ALP will need to make some concessions when working with the new crossbench lineup, many of whom are members of the Greens or identify as a “teal independent”.
Either way, the numbers show that taking action on climate is high on the priority list for many Australians, who have very clearly used their votes to send a message to the major parties. While this may fill certain people with joy, others are anxious to see how potential policy changes could trickle down the ladder, and hit the wallets of small business owners.
What Small Business Can Expect From A Labor Government
For all of the Coalition's boasts about their superior economic management, Prime Minister Anthony Albanese now has the daunting task of navigating his new government through the minefield bequeathed to him by his predecessors.
Although the news may come as a surprise to some, the Coalition had actually managed to double the nation's debt levels even before the pandemic hit. As a parting gift, the stage-three tax cuts - now endorsed by the incoming Albanese government - is set to strip $37 billion a year from revenue within the next ten years.
While any of the parties would have a tough time overcoming the many economic hurdles Australia is yet to face, it’s not unreasonable to wonder how we plan on paying the bills as a nation.
As such, it’s no surprise that news for small business has been surprisingly quiet in the pitches and spruiking by both parties pre-election, and predicting what happens next in the short term won’t be easy. However, SMEs do have a few breadcrumbs of information to work with, and the following policies are set to be enshrined in the not so distant future. Higher Workforce Participation - One of the Labor Party’s major policies has been to alleviate the costs of childcare. According to Albanese, cheaper childcare is an economic reform, and the ALP plans to prioritise this election promise as a means to boost productivity and female workforce participation by removing these barriers. Multinational Tax Avoidance - Labor will adopt global developments on multinational tax through a tax integrity package designed to close tax loopholes exploited by multinational companies and improve transparency. While the policy certainly doesn’t target small business owners, the concept is to improve the economic landscape to allow smaller operators to thrive.
Closing The Gender Pay Gap - The women of Australia have used their vote to put the major parties on notice, but there are still workplaces where workers do the same job, work the same shifts, but get paid less than their colleagues. Labor has publicly committed to enshrining ‘same job, same pay’ into law, meaning a commitment to closing the gender pay gap.
Tighter Anti-Competitive Measures - By increasing the fine for commercial anti-competitive behavior from $10 million to $50 million, alongside a move to establish a ‘Super Complaint’ function within the Australian Competition and Consumer Commission, Labor is clamping down on false advertising and unscrupulous practices done by large corporations.
Post Pandemic Skills Training - A key election promise from Labor is to make 465, 000 TAFE places free, and fund an extra 20, 000 university placements. The spending is focused on industries hard hit by pandemic related shutdowns, as well as addressing future skills shortages linked to the construction, resources, digital and manufacturing industries.
Although Labor has softened its stance for a 5.1% increase in the minimum wage after a political firestorm over the cost to employers - many of whom identify as small business owners - the Better Deal For Small Business policy has been unveiled to give SMEs a sense of reassurance that they haven’t been left behind.
Given the complex nature of the laws and regulations that small businesses have to navigate on a day to day basis, whether this measure has any teeth or not, we’ll have to wait and see. Navigating The World Of Small Business With The Professionals
Whether you’re starting a business, purchasing an existing one, or even reevaluating where your current enterprise stands - all require some form of financial know-how if you hope to successfully navigate your legal tax requirements as well as hitting your financial and business goals.
However, if understanding the legalities that surround your business or finances isn’t your strong point, then it may be reassuring to know that you’re not alone. In fact, many businesses (big and small) enlist the services of an accountant in order to free up their time while knowing that their financial obligations are already taken care of by the professionals.
Ultimately, the team at Muro believe that every business owner is an entrepreneur. However, accounting does not discriminate - finances break down barriers and are not territorial. If you would like to take a deeper look into your finances, please get in touch with us at Muro today to ensure that you’re on the right path for success.