Business Update – 16 October 2024 - Bookkeeping On The Go

Business Update – 16 October 2024

15/10/2024 | Natalie Adams

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

Hiring new employees for the festive season?

As the festive season approaches, you may be thinking of hiring new employees to help with your business. Here are some key things to remember when it comes to your tax and super obligations.

Reserve Bank ‘having a bet each way’ on future of interest rates

The Reserve Bank has warned it could be forced to increase interest rates in the coming months while admitting at the same time an earlier-than-expected cut could be on the cards if the economy weakens more than expected. The cautious messaging, from the minutes of the RBA’s September board meeting released this morning, highlights the uncertainty facing the economy – and the central bank as it decides what to do with the cash rate.

Australian economy faces decades of stagflation

Leith van Onselen, Chief Economist at the MB Fund and MB Super, believes that Australia’s productivity has been stifled through “capital shallowing”, which occurs when infrastructure and business investment fail to keep pace with population growth. The result is less capital per worker, rising congestion costs, lower productivity growth, and lower per capita GDP growth.

Australian small businesses face recession clean-out

A record number of Australian businesses entered insolvency last financial year, with firms in the construction and hospitality sectors most heavily impacted.

Report reveals essential contribution of superannuation

Only one-third of Australians believe they would be able to save for their retirement without compulsory superannuation, an AustralianSuper study has revealed.

Business confidence slips in September

Roy Morgan’s business confidence index fell by seven points in September, landing at 94.3, as concerns over the next 12 months grew. After a short-term boost following the Stage 3 tax cuts in July and August, businesses are now less optimistic about their future prospects, with 41.1% expecting to be financially better off in the next year – a 5.1-percentage-point drop from the previous month.

Changes to merger reform proposals a step in the right direction

Mergers play a critical role in Australia’s economy, enabling businesses to achieve economies of scale that improve innovation and productivity – driving economic growth that benefits consumers and businesses. Business Council Chief Executive Bran Black said the improved legislation is a step in the right direction compared to the original proposal.

Post-Covid night-time business is booming

Post-pandemic, Australia’s night-time economy has shown substantial growth says a new report. Released by the Council of Capital City Lord Mayors, the document – Measuring the Australian Night-Time Economy – crunches economic performance data for 2022-23.

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