Latest News

Hot Issues
spacer
2025 Tax Planning Guide Part 2
spacer
From 1 July 2025 ATO Interest is no longer tax deductible
spacer
SME confidence and conditions see uptick over Q1 2025, survey reveals
spacer
Depreciation expert urges property investors to leverage tax depreciation
spacer
Buy a business
spacer
Upskilling and self-education costs
spacer
How secure is your super account?
spacer
Freshwater Resources by Country 2025
spacer
Why Might a Lease Dispute Occur?
spacer
2025 Tax Planning Guide Part 1
spacer
$20,000 instant asset write-off
spacer
New Bunnings scam warning
spacer
The Largest Empires in the World's History
spacer
All the documents, fact sheets and downloads to do with this year’s 2025-26 Federal Budget
spacer
Winners and Losers - Federal Budget 2025-26
spacer
Building Australia's future and Budget Priorities
spacer
ATO outlines focus areas for SMSF auditor compliance in 2025
spacer
ATO to push non-compliant businesses to monthly GST reporting
spacer
ASIC pledges to continue online scam blitz
spacer
Tax Office puts contractors on notice over misreporting of income
spacer
Tax planning tips for 2024-2025
spacer
What does the proposed changes to HELP loans mean?
spacer
Vacant Residential Land Tax
spacer
The Most Held Currencies in the World | 1850-2024
spacer
Salary sacrifice and your super
spacer
5 Clauses Tenants Should Look For When Reviewing a Lease
spacer
ASIC continues crackdown on dodgy directors
spacer
Vehicle association calls for stricter definitions with luxury car tax changes
spacer
Government to push ahead with GIC deduction changes
spacer
Exploring compassionate early release of super
spacer
Have you considered spouse contribution splitting?
Article archive
spacer
Quarter 1 January - March 2025
spacer
Quarter 4 October - December 2024
spacer
Quarter 3 July - September 2024
spacer
Quarter 2 April - June 2024
spacer
Quarter 1 January - March 2024
spacer
Quarter 4 October - December 2023
spacer
Quarter 3 July - September 2023
spacer
Quarter 2 April - June 2023
spacer
Quarter 1 January - March 2023
spacer
Quarter 4 October - December 2022
Small businesses show sign of omicron rebound

Increased sales take Xero index into positive territory.

Small businesses are taking tentative steps to rebuilding after COVID and are primed to make use of incentives in last week’s budget, according to February data on the sector.

The Xero Small Business Index rose three points during the month to 102, slightly above the long-term average, and regional managing director Joseph Lyons said the result was cause for “cautious optimism”.

The survey, based on actual data from thousands of Australian small businesses using Xero accounting software, showed the result was largely driven by sales, which increased 15.2 per cent for the month, year-on-year.

The best performing sectors were administrative services, with sales up 24.6 per cent, and hospitality, up 6.7 per cent.

That sales result compensated for weak jobs growth, which fell 1.1 per cent, plus wage increases (up 3.3 per cent) and an increase in the time it takes to be paid (now 23.7 days).

More than half of small businesses in the survey said they had returned to pre-pandemic levels of performance, but Mr Lyons said the challenges would keep coming.

“[The] results are cause for cautious optimism that the sector is on track for a gradual recovery,” he said.

“That said, small businesses are still navigating the ongoing impacts of the pandemic and continued labour shortages, while also facing a fresh set of challenges.

“Those in south-east Queensland and northern NSW are dealing with the aftermath of the floods, while more broadly we’re seeing the effects of inflation and rising costs.”

Last week’s budget measures included several initiatives aimed at small businesses, including 120 per cent tax deductions for spending on training or digital technology.

Mr Lyons said the health of the small-business sector was key to Australia’s sustained economic growth.

“Time and again, small businesses have proved their resilience but they’ll need to remain top of mind for political parties … as we edge closer to an election,” Mr Mr Lyons said.

The Xero Small Business Index takes the temperature of the sector by combining data from sales, jobs, wages and payment times into a headline figure that shows how the sector is performing relative to the long-term average.

 

 

Philip King

04 April 2022

accountantsdaily.com.au

Liability limited by a Scheme approved under Professional Standards Legislation.
© O'Brien and Partners 2024 - All Rights Reserved | 333 Canterbury Road, Canterbury VIC 3126 | Tel: 03 9509 3911 Site by Acctweb