Business Update – 24 August 2023
Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.
A survival guide for SMEs in the face of inflation
Inflation is a challenge for all businesses, but the sting is especially painful for SMEs. With limited resources, they can find themselves struggling to absorb costs associated with inflation, potentially leading them down the path of price increases and lost customers. This leaves SMEs struggling with the eternal question: pass on increasing costs to customers, or continue to absorb as much of it as possible?
Worst is over’, RBA boss declares
Outgoing Reserve Bank of Australia governor Philip Lowe has confirmed a “modest” rise in joblessness will be part of bringing inflation down. Lowe, who steps down from his role in September, faced a parliament grilling for the final time.
Forecast Aussie dollar will plunge to record low over next five years
Australians travelling overseas can’t help notice how weak the dollar currently is compared with other major currencies, but there is a warning it could plunge to a record-low 40 US cents in coming years.
‘A lot of questions’ for ATO after $1.6 billion paid to GST scammers
The Australian Taxation Office has “a lot of questions” to answer after a fraudulent scheme promoted by social media influencers cost Australian taxpayers more than $1.6 billion. The fraud involved more than 50,000 people creating fake businesses and income statements to receive unwarranted GST refunds from the ATO.
July sees unemployment rise to 3.7%
Australia’s unemployment rate experienced a notable uptick, reaching 3.7% in July, according to recent data from the Australian Bureau of Statistics (ABS).
Migration essential for our national prosperity
Migration remains central to the Australian success story. It enriches the social fabric of our nation, brings new ideas and international connections and strengthens our economy, Business Council chief executive Jennifer Westacott said.
NAB’s ‘World on Two Pages’
Hopes have been raised of a soft landing for the global economy, although a number of headwinds remain. For Australia, our forecasts for GDP growth have strengthened marginally but we continue to expect growth to be well below trend in 2023 and 2024 as the impact of rate rises flows through, according to recently released NAB economic commentary.
How to access your super early when times are tough
Cost-of-living pressures and financial stress could make dipping into your superannuation tempting, especially when you have “control of the chequebook” as the trustee of an SMSF. If you’re considering pulling money out of your SMSF, don’t do it – even if you intend to put it back in.
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