What's the Federal Election doing to businesses around the country?

June 27th, 2016

The Federal Election is looming large, and many businesses are feeling some kind of pinch because of that. There's a focus on small businesses this time around, and as the parties go head-to-head in a battle to come out with the most seats in parliament, SMEs are rapidly dropping in confidence.

It doesn't have to be as dire as people think it will be, however.

A Dun and Bradstreet media release from June 7 points the finger at the upcoming election scramble as something that is drawing focus away from the way small businesses are performing.

"The March quarter GDP data released last week confirmed a solid rate of GDP growth, but ongoing weakness in national incomes and falling profits in the Australian Bureau of Statistics data fit with the weakening in business expectations," said Stephen Koukoulas, Dun and Bradstreet's economic advisor.

The upcoming election is drawing focus away from the way small businesses are performing.

"The relatively good news for the economy seen in late 2015 has turned sharply lower in the middle of 2016, with the focus on the election campaign dominating the news and this is eating away at the business sector."

It's not all bad news, however, as out of the ashes of battle might come some fantastic results for SMEs all over the country.

So, how is this election trail heating up to be working in favour of small-business?

A clear campaign trail

According to a Smart Company media release from June 20, there are already proposed policy changes that are going to be clearing the way for SMEs and taxation payments.

How will the upcoming election change the game for SMEs?How will the upcoming election change the game for SMEs?

For example, the New Jobs Tax Cut is a policy that could offer a reduction of $20,000 in annual taxes to businesses that create new jobs, thus helping the employment position of the whole country.

"There are approximately 1.5 million Australian businesses that have turnover under $2 million and have been operating for at least two years," said Shadow Business Minister Michelle Rowland.

"These are the businesses that would be eligible to claim the New Jobs Tax Cut."

With all of the focus on an election and what it could mean for businesses on the other side of it, SMEs might be losing sight of what they could be doing coming up to the end of the current financial year.

"If you're moving towards the end of the tax year, you can claim the [$20,000 instant asset write-off] deduction in the current year," said Mark Chapman, director of tax communications for H&R Block Australia.

"So now's a great time for businesses to go out and invest in pieces of tech, computers, tablets, phones, Wi-Fi networks - anything that costs less than $20,000. It's also great for things like office furniture and potentially a vehicle, if you need one for your business."

Earlypay is on hand to help your business toward success, and this election must go on the back-burner.

If your business has turned its attention away from the day-to-day operations that are vitally important to the life of your company, then it might be time to stop focusing on the campaign trail for a few days and get everything under control in the backroom.

How will you be able to afford these new assets?

It's all well and good to intend to buy all sorts of great new equipment, but it won't get your business anywhere if you don't have the required working capital to make it happen.

Much of an SMEs money can be tied up in unpaid invoices, which Dun and Bradstreet report are taking an average of 43.7 days to clear. This might be a record-low, but won't help if you're trying to make a move in the next week.

What can help is the invoice finance solution from Earlypay. We're on hand to help your business take its next steps toward success, and the focus on this election campaign must go on the back-burner for that to happen.

Get in touch today to make this happen as soon as possible - keep your confidence levels up!

If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].