Aussie businesses call for tax cuts as new data reveals uncertain market conditions biggest worry for SMEs
SYDNEY, 20 August 2021 — CreditorWatch, Australia’s leading digital credit reporting bureau, has released brand new customer sentiment data on the biggest challenges that Australian businesses faced last financial year, and how they’re feeling as we enter the current financial year.
Unsurprisingly, lack of certainty from COVID-related restrictions proved a major challenge for Australian businesses last financial year. In response to the question, “What were your main challenges last year?” 50% of respondents answered “managing uncertainty (e.g. border closures and lockdowns)”. “Uncertain economic/market conditions” was also cited as a major challenge.
Top 3 challenges faced last financial year:
- Managing uncertainty (e.g. border closures and lockdowns) – 50%
- Uncertain economic/market conditions – 49%
- Supply chain management – 32%
Looking ahead, uncertain market conditions continue to be a concern for a large proportion of the respondents, along with ongoing border closures and lockdowns which are having an adverse knock-on effect with managing staff.
Top 3 challenges for the current financial year:
- Uncertain economic/market conditions – 58%
- Managing uncertainty (e.g. border closures and lockdowns) – 53%
- Managing staff (including recruiting, retaining and managing WFH) – 32%
Having said that, there is still optimism among the business community. More than 44% of respondents described business conditions as positive and only 15% thought they were negative. Furthermore, 44% said they planned to invest this year.
Top 3 areas where businesses plan to invest in the current financial year:
- Staff (including recruitment and training) – 44%
- Technology – 40%
- Increased marketing spend – 20%
Interestingly, when asked where the government could better support businesses, an overwhelming number of respondents suggested lower tax rates.
Top 3 suggestions on how businesses can better support businesses:
- Lower company tax rates – 55%
- Opening the borders – 43%
- Reducing red tape – 37%
Patrick Coghlan, CEO at CreditorWatch, says: “Business owners are finding it extremely difficult to develop and execute growth strategies when they’re confronted by so much uncertainty in their everyday operating environments. Hiring, purchasing of stock and investment in technology and other assets have all been thrown into disarray. Businesses desperately need goalposts to aim at, even if they’re twelve months away.”
“Lockdowns and uncertainty prevail right now but business owners remain optimistic about the future. Once Australia gets through these lockdown periods, the economic and financial bounceback will be large and swift. It’s a very challenging environment without an end game but there will be one and those businesses surviving are preparing for that ‘end day.”
The CreditorWatch survey was conducted between July & August 2021 surveying 280 SME business owners.
Sling & Stone
0431 651 418
GM Communications and Marketing, CreditorWatch
0417 771 778
CreditorWatch is a digital credit reporting agency, headquartered in Sydney. From sole traders through to ASX listed companies, more than 50,000 Australian businesses now use CreditorWatch to make affordable, informed credit decisions, avoid high-risk customers and ensure they get paid on time. CreditorWatch customers can easily search for and monitor the credit history, court actions, payment defaults and insolvency notices associated with any business entity in Australia (including sole traders, trusts and partnerships) giving them an incredibly accurate picture of the risk posed to their business.
The company was founded in 2011 and has offices in Sydney, Melbourne and Brisbane. Find out more at www.creditorwatch.com.au.
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