Last week we released the latest findings from the latest MYOB Business Monitor, and the results were sobering. In the last quarter, over a third of Aussie businesses (34%) saw revenues fall – compared to under a quarter (22%) in the August Monitor. The outlook is also bleak, with 26% of businesses seeing work in the pipeline reduced – almost double that of Q3.
It seems businesses woke up after the federal election with a real headache – satisfaction has plummeted, and now nearly half (48%) of business owners are dissatisfied with the Federal Government’s support for business.
When we dig deeper, we see 46% of Aussie business owners are really unhappy with the result of the Federal election (and about 10% would have changed their vote if the election had had to be repeated).
It seems the unfamiliar territory of coalition negotiations has been the catalyst for a minor crisis in business confidence , where some business owners have put growth plans on hold while they wait for certainty around taxation reform, the superannuation guarantee and carbon pricing.
This sudden lack of certainly in the direction of the country presents a serious situation. SMEs make up over 96% of all Aussie businesses and are the engine room of the economy ― and right now that engine is stalling.
Politics and the economy are intertwined and political infighting is affecting the economy. Business owners are unhappy with the government and revenues are down.
Your average Aussie business owner is pragmatic, resilient and can see through most of the political guff and promises, but does the government?
In my view, a more bi-partisan focus on activities that provide more certainty and confidence for Aussie businesses would be a great start. Business owners have made it clear they want political leadership around taxation reform, reduction of red tape and investment funding incentives that will make business life easier and kick start growth.
Julia and Tony– politics is politics. Worry about what you can control – such as making business life easier for Aussie businesses.
What are your thoughts – do you think the political environment is impacting the economy? As a business owner, how could the Federal government support you better?