BUSINESS
NEWS
PETROL BITES DEEP
The continuing price rises of petrol has been confirmed as having
serious impacts. Among the findings of various research is the
latest Westpac Consumer Confidence Survey which found sentiments
had slumped to the lowest in 3 years which is in contrast to the
Federal Government that insists the continued low unemployment
and restrained interest rates are proving positive. And the latter
is boosted by a report from the International Monetary Fund which
found the Australian economic outlook to be very strong and the
stock market confidence where the All Ords has consolidated itself
at over 4500.
MAKING IT QUICKER
This year’s BRW Young Rich list finds retail is the biggest
quick money maker, still ahead of technology, services and property.
Investment, Manufacturing and Telecommunications remain down the
pecking order of quick money makers.
WHAT TAX REFORM
On the 20th anniversary of the sweeping tax reforms introduced
back in 1985, a KPMG survey has found the move to have been a
long term success. It cites the reduction of the highest marginal
tax rate and the introduction of dividend imputation has reduced
the average tax rate by 10 percent. The report also found the
introduction of the GST was “insignificant” compared
to the 1985 reforms. Interestingly, the Australian Bureau of Statistics
has found the income gap between lower and higher earners has
grown in the past 10 years by over 2 percent.
COMMERCIAL SALARIES
As the residential property price increases slow down, some areas
of the commercial property market continue to do well. An industry
survey has revealed that incomes among those in the commercial
property sector has not only increased over recent months but
is also set to continue rising.
BUSINESS
OUTLOOK
INTEREST RATE REDUCTION
As petrol price increases put brakes on consumer spending growth,
many observers are now saying the Reserve Bank could be forced
to look at an interest rates reduction early in the New Year.
Currently, most analysts agree that there is about a 50 percent
chance of this happening.
HOMEWORK BOOMS
Although accurate figures are hard to establish, the latest projections
indicate the work-from-home sector of small business is racing
ahead. Many observers now believe within 10 years, a huge percent
of the national workforce will be self-employed with many doing
so from home.
