2014 Federal Budget Review

2014 Federal Budget Review

Starting with Besa Deda, the Chief Economist of the St. George Bank. She reviewed the current global and Australian economic climate. One of the first and most interesting lines that she reviewed was actually a historical cash flow of the Australian GDP dating back, believe it or not, to the Gold Rush in 1870. On the same slide it projected forward the cash flow to 2070. We’re talking about a 200 year projection here. 144 year look in the rear view mirror of our financial history as a country, and a 66 year projection into our economic future. It was a pretty interesting slide to look at. It shows that the powers that be here in our government, love them or hate them, have a genuine, really deep understanding of the purpose of looking back into financial history, looking forward into what’s likely to happen, and planning so that the actions needed today are clear.

 

It’s from these that budgets are born. The Chief Economist spoke of residential building approval being on the rise, particularly here in New South Wales, and the ripple effect onto the construction market rising as well. This was all directly in correlation with both the current and predicted population growth, particularly here in New South Wales where we make up more than 50% of the overall Australian population growth predicted.

 

Retail spending on the recovery

 

Last but not least, she spoke about retail spending being on the recovery and that likely to project into the future with unemployment being dramatically down and continuing to drop into the future. All of this is likely to lead the RBA Bank to continue to hold interest rates until at least February next year, when an increase is predicted. But all of this will make sure that this stays in line with the current trends. Well worth checking out more of those slides if you get the chance.

 

The Three biggest expenditures of the Australian Government

 

Then Ross Greenwood got up... And of course being the Channel 9 finance guy, I’m sure you all know who I’m talking about. He spoke quite candidly about politics and the budget and the impact this is likely to have on small business. Let me share a little bit about what he said. In reviewing the budget, he commented on the fact that the three biggest expenditures of the Australian government is welfare, and that includes the age pension, health and education. These are the three big spenders we have. And being the top spends, this is also where the big cuts came from so that we can overcome that budget deficit. The fuel excise was also discussed, and how we’re already paying around a 40 cents in excise now. And that this will be increased by about 15 cents, almost all of which has been promised to roads and transport infrastructure for the future growth, again, particularly here in New South Wales to keep up with all of those economic trends that I’ve just discussed.

 

Australia to be the biggest spending nation on the planet!

 

Economists agree that we are on a rapid trajectory to a spending spree. In fact, we were literally going to be the biggest spending nation on the planet. If we didn’t do something quick, we’re going to have an awful lot of issues on our hands, far bigger than what this budget is going to cause. To top that off, we were already the third largest on the list of debtors on the planet, meaning we owed pretty much more than everyone else put together by two.

 

The good news is for small business owners amongst all of this, is that the reduction from the small business tax is about 1.5%. It may seem like a small amount, but if you go back to your tax records, you’ll see just how much that’s going to add up. Last but not least, all of this is to ensure globally in-line tax rate, particularly for business so that we can up our competitiveness with businesses we compete with around the globe. The only drawback is the change in personal income tax for those business owners who are earning more than 180,000 dollars in personal income. But, how to say this correctly? A good discussion with a good accountant should help with that.

 

The Federal Budget is just a proposal

Of course the Budget right now is simply a proposal... It’s just a blueprint of what they’re hoping to do for our financial future. This still needs to be sold, quite literally pitched to the public, and they’re working very hard to do that. You’ll see lots more interviews with Joe Hockey coming up. It’s not just the public they need to sell it to though, it’s the Senate. The reality is some of those key points, particularly those the media are picking up on that are hitting the low income families, will be stopped at the Senate. They just won’t let that get though and the current government doesn't have the power to push it all the way without making some concessions.

 

Reality is right now, we’re just whistling in the wind. The real financial difference is still to come to see what actually makes it through to becoming a policy. Watch this space.

   

About the Author

 

Ben Fewtrell is a sought-after Business Coach, Keynote Speaker and trainer who has featured in Virgin’s Inflight Magazine and Entertainment Portal, SKY Business and “Secrets of Top Business Builders Exposed”. He is also the host of the popular Business Brain Food Podcast where he interviews leading experts on anything and everything business.

1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Leave a Reply

Your email address will not be published. Required fields are marked *

Top Rated Articles

How your company can adapt to the Digital Revolution

Over the last couple of years, technological innovation has brought about a rapid change in the customer service landsca

LEARN MORE

Will Marketing Automation Help Your Business Grow?

Marketing automation software can benefit your business in a number of ways. It is a great way to increase traffic, enco

LEARN MORE

How CRM Can Maximize Customer Lifetime Value (CLV)

"Keep your customers always on the frontline," this is a key philosophy to running a successful business. Customers are

LEARN MORE

Recently Viewed

The 4 Step Process Tony Robbins uses to achieve his goals

"Setting goals is the first step in turning the invisible into the visible" - Robbins Tony Robbins, a man who didn't

LEARN MORE

How I changed my Facebook Business Page Name

I started a Facebook page for my business many years ago. I had spent thousands of dollars running ad campaigns and gain

LEARN MORE

What do You know (and not know) about eCommerce Trends for WordPress websites

When it comes to WordPress eCommerce sites in 2018, all trends seem to be aimed at building a better, safer experience.

LEARN MORE
  • Over the past 6 months the incredible team at MMP have supported us to shift our attitude towards our business & month on month our revenue is increasing to the point we will be able to employ additional staff to support our business goals long into the future. Do not regret our decision one single bit!

    • Emma Reece

  • Working with my coach has enabled me to see the areas where my business is failing. This was pretty confronting to me to be honest. MMP has the tools to improve these areas and the guidance on how to implement them.

    • Sharon Robinson

  • I have been working with Max My Profit for approx 3 years now, and over that time I have learnt a lot of things about not only what it takes to run a business, but I have also learnt things about myself. I don't believe i'd be the person or have the business I have today if it wasn't for Max My Profit and our Business Excelerator. Great team to work with if you want to take your business serious!

    • Ben Choy

  • As a new client for Max My Profit (MMP) it has taken no time at all to realise the benefits of business coaching. Despite many years of senior management experience starting a new business requires best practice systems and processes built on a solid platform of detailed planning. I look forward to the benefits of adopting the formula being shared by MMP.

    • Campbell MacLeod

  • Max My Profit Are truly awesome at what they do. They have helped me over the past 12 months to get off the tools in my business and start working on my business. I am looking forward to 2019 with enthusiasm not concern. Thanks so much.

    • Aaron Kemp

  • If you are committed to Growth the Max My Profit Team has the tools and expertise to excelerate all areas of your life. They Care, They Listen, They Understand You as an Individual first then they focus on Your business. Thank you Max My Profit my rating is a 6/5 - Kindest Regards The Mr Handyfix Team

    • Catherine Kavadas

  • The team at Max My Profit are an absolute pleasure to deal with. I love working with a team who is on top of what they are doing and have a clear view of what they are working on with you and helping ensure you get to the end goal.

    • Lauren Watts

  • I have been working with MaxMyProfit over the years and what they do for SME's in growing their business is fantastic. Also due to there knowledge and their supporting material for companies across the 5 lifestyle stages and assisting them through this process day in day out is extremely comforting as a small business owner and have referred them many businesses over the years.

    • Steve Laingy

  • Working with a business coach from MaxMyProfit has been one of the best things I have done for my business. I had several other coaches before MaxMyProfit but these guys are a step above the others. I have seen a significant increase in sales, now have a business that can run itself and the coaching program has paid for itself many times over.

    • Matthew Kitchin

  • Much more than just business coaches. There is an absolute treasure chest of business knowledge in their members site.

    • Iain Campbell

  • Max My Profit are unique as they really partner with you to develop and implement a plan that will drive success for the business. I was hesitant to proceed as previous business coaches tell you what to do and rely on you to implement.

    • Michael de Haan

  • I attended one of Max My Profits introductory events in Melbourne. Having been an accountant for almost 30 years, I was somewhat sceptical. Boy was I wrong. I not only enjoyed the presentation, but I gleaned so much from just that session.

    • Daniel Odd

  • These guys are an absolute wealth of knowledge for Small Business. The programme and support networks they have set up ensure learn more every day and can take your business from good to great. Thanks so much.

    • John Butler