Businesses divided on impact of government stimulus package
Senior business owners and managers are divided about the value of the Federal Government’s $42 billion stimulus package (Nation Building and Jobs Plan of February 3), according to a Veda Advantage business sentiment survey.
A total 45 per cent of the surveyed Australian business owners and senior corporate managers said the stimulus package had not impacted their business in any way while 39 per cent said it was too early to tell.
Of the 11 per cent of businesses that had been impacted by the stimulus package, consumer spending was found to have had the largest impact.
The online survey also found more than 60 per cent of businesses in Australia have not been affected by liquidity or cash flow issues in the past year, while almost 58 per cent were not exposed to a large amount of bad debt.
In addition, 85 per cent of businesses have not had any trouble securing credit in the last six months, while only 27 per cent of those that were refused bank credit had sought finance with an alternative financier.
This indicates businesses are “not taking risks and are focusing on maximising liquidity in the current financial climate", according to general manager Russell Evans.
Despite an "overall marginal improvement in business sentiment in the past six months”, Evans said the survey found businesses remained cautious in the economic climate.
A total 61 per cent of businesses surveyed are unlikely to apply for credit in the next 12 months, according to the survey, while only 9.2 per cent of businesses would apply for credit up to $100,000 in the next 12 months.
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