Inaction on rising business costs may lead to lay-offs: IPA
Small business will cut jobs if Federal Government does nothing to alleviate the rising costs of doing business, the Institute of Public Accountants (IPA) said.
It is advocating for a small business tax regime that reflects the high cost of doing business in Australia and the regulatory burden placed on small business.
IPA chief executive Andrew Conway said if nothing was done to reduce the high cost of wages, utilities and the Australian dollar, then action was needed to increase productivity and reduce the cost of regulation.
"If we do not see action to alleviate these problems then we are going to see more and more redundancies in the non-mining sectors, just as the heat is coming off from the mining sector," Conway said.
The IPA said its expectations were based on the latest Dunn & Bradstreet (D&B) National Business Expectations Survey.
D&B's survey showed that no net jobs had been created since the March 2012 quarter and businesses were worried about their costs.
Conway said concerns over cash flow, high utility and operational costs and the need to pay down debt rather than investing in their businesses were strong signs business owners were under pressure.
"It is alarming to note that 75 per cent of executives think cashflow will be an issue for their business.
"Concerns over cashflow, high utility and operational costs, and the need to pay down debt rather than invest in their business are all strong signs of the pressure businesses are facing," he said.
AUTHOR
Staff Writer
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.
