Business Update – 18 September 2024 - EMB Business Solutions Pty Ltd

Business Update – 18 September 2024

17/09/2024 | Bizink

Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.

Roy Morgan Business Confidence jumps due to increased confidence about the economy

In August 2024, Roy Morgan Business Confidence was 101.3 (up 6.2pts since July 2024) due to increasing confidence from businesses about the performance of the Australian economy. The boost to Business Confidence came after the Stage 3 tax cuts were introduced for income taxpayers in July and the latest inflation figure dropped to 3.5%.

Report reveals Australian retailers unlikely to bounce back until late 2025

A recent report published by KPMG Australia reveals that the retail sector is in “poor health” and unlikely to make a full economic recovery until late 2025 as consumer confidence remains low due to cost-of-living pressures.

ATO issues $100 billion warning over unpaid tax

The Australian Taxation Office (ATO) is owed more than $100 billion in unpaid tax, super and other debt – the highest it has ever been, according to Commissioner Rob Heferen.

Heferen said the debt is equal to about one-sixth of all collections in the last financial year, and includes withheld pay-as-you-go tax and superannuation.

Falling resource prices threaten to blow $4.5 billion hole in budget

Jim Chalmers will this month become the first Australian treasurer to visit China since before the pandemic, at a time when both countries’ economies are faltering. News of the upcoming trip emerged as the falling price of resources threatened household budgets across Australia.

Inflation and unemployment complicate the RBA’s tightrope walk.

While Australia weathered the pandemic better than many countries, questions about its recovery and handling of high inflation are tempering the economic outlook. Getting inflation and employment settings right will be critical, experts say – and some pain will likely be necessary.

China collapse threatens Australia’s backbone

China’s slowdown will hit the Australian economy exactly when domestic conditions are already problematic (GDP growth is slow and unemployment is rising). It is important for Australians to realise China matters to us more than any other country. One-third of all Australian exports go to China. Weakness in the volume of exports to China and the prices paid for those export items — like our iron ore cash cow — will impact the performance of many companies and the economy more generally.

BHP pumps over $50 billion into Australian economy

BHP’s 2024 Economic Contribution Report shows the mining heavyweight injected $52.9 billion in value into the Australian economy in the 2024 financial year (FY24). The company, which has a market capitalisation of just under $200 billion, spent $22.2 billion with suppliers and around $700 million of that went directly to 240 Indigenous suppliers, marking a 75% year-over-year increase.

Economic climate impacting the mental health of over half of SME owners

New research commissioned by the Commonwealth Bank of Australia (CBA) has highlighted the significant stress faced by Australian small and medium-sized businesses (SMEs) amid the ongoing cost-of-living crisis. The study showed that 52 per cent of business owners and senior managers have experienced a negative impact on their mental health over the past 12 months due to the challenging economic climate.

Why Australia’s share market is near record levels despite the economy grinding to a halt

With Australia’s economy growing at its slowest pace in decades, excluding the pandemic, and expectations interest rates could soon start to fall, analysts are warning there is too much “exuberance” on the share market.

Businesses increase asset investment despite economic uncertainty

Businesses are continuing to invest in their operations despite the slower economy, with data from the Commonwealth Bank of Australia’s business bank showing a 15 per cent uplift in vehicle and equipment financing compared to the same period last year.

Huge change to $50,000 superannuation scheme for Aussie first-home buyers in days

Changes to the First Home Super Saver Scheme are coming into effect this week. With home ownership becoming more challenging for many Aussies, it’s hoped the changes will make it a bit easier for Aussies to get a foot on the property ladder. The First Home Super Saver Scheme allows first-home buyers to make voluntary contributions to their super to help them save for their first home. They can then withdraw up to $50,000 worth of those contributions to put towards a home deposit.

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