Josh Frydenberg’s budget announcement
| Commentary from CreditorWatch CEO Patrick Coghlan, urging the government to look closely at small business measurers to drive Australia’s economic recovery: “Treasurer Josh Frydenberg is right to portray the next financial year as a ‘mountain to climb’ for Australia but it is encouraging that the country is in a good position versus our international counterparts. Whilst 870,000 jobs were lost between March and May, the government’s economic stimulus package and measures included within the Safe Harbour legislation, saved thousands of businesses from going under. “However, now comes the difficult balancing act of tapering off such measures, ensuring that the maximum number of jobs are protected whilst making sure that good money is not wasted on poorly performing companies. CreditorWatch data suggests that in April, May and June, hundreds of companies that in normal times would have gone into administration have been kept afloat. These ‘zombie’ companies will hold back our national recovery, so we’re urging company directors to seek external guidance on whether they have a viable future. “Measures outlined by Small Business and Family Enterprise Ombudsman Kate Carnell on Tuesday will be critical to the recovery of Australia’s small business sector, which employs 44 per cent of all Australians. CreditorWatch data shows payment times in June lengthened to an average of 49 days across all industries. Legislating 30-day payment terms for small businesses will level the playing field for SMEs, whilst the introduction of a “fit for business” grant would provide them with a much-needed injection of capital. This will be money well spent and the government should prioritise such changes so that Australia’s small business sector can help drive the national recovery we need.” |
