Business Update – CPA forecast, supply chain & support packages.

It’s been a busy start to the year, as we get back to “business as usual”. We all know not to get too comfortable after the past 2 years, but fingers crossed things seem to be getting back to pre-pandemic business levels. traffic is certainly back to frustrating levels again.

Before we jump in to the latest updates from a business perspective it’s important to acknowledge the horrific scenes unfolding in the Ukraine and we are experiencing major flooding on our own shores. We sincerely hope the conflict in Ukraine is resolved without any further bloodshed and the deluge across the eastern seaboard of Australia soon dries up.

Now back to matters with a more local business focus here’s a few things to bring your attention to as summer comes to an end:

CPA forecasts a strong economy for 2022

The President of CPA Australia recently stated he saw strong signs for the Australian economy, quoting Bill Evans, Westpac’s Chief Economist who put forward the following rationale:

  • Strong growth is expected in 2022, (+5.5%) after a flat March quarter due to the Omicron effect in January
  • Unemployment rate to fall to 3.8% in 2022
  • RBA cash rate would rise in August 2022, 1.75% by first quarter of 2024
  • CPI to peak at 3.6% in 2022 and come down to 2.7% in 2023
  • Wage growth between 3%-4% for 2022 and 2023

Not known for their overly optimistic outlook, this would appear to be good news for Australia. Obviously, we are part of a global economy and the pandemic and volatile situation in Eastern Europe may have an impact on us yet.

What we hope is that a buoyant economy will lead to buoyant businesses and record sales. This could well be the year you invest in your business systems, to streamline them in preparation for this growth. Ask us how!

Supply Chain Issues Likely to Continue

While COVID-19 cases are dropping, retailers have warned supply chain issues are expected to continue for up to 18 months. This is due to the international shipping crisis sparked by the COVID-19 pandemic and the shortage of freight space on ships, shipping containers, and pallets.

NSW Unveils $1 Billion Support Package for Businesses

The New South Wales government has unveiled a $1 billion support package for small- and medium-sized businesses hit by the Omicron outbreak.

However, the payment will be capped at half of what was offered during the Delta wave in 2021, after the federal government refused to split the cost of the package.

The package will provide a payment of 20% of weekly payroll costs to businesses that can prove at least a 40% decline in turnover across January. Payments would range from a minimum of $500 to a maximum of $5,000 a week.

Pandemic Leave Disaster Payment

People who are forced out of work to isolate due to being infected or being a close contact are eligible for the Pandemic Leave Disaster Payment.

You are also eligible if you are caring for a child under 16 years old who is a close contact or infected, or someone with a disability or a severe medical condition who is a close contact of someone with COVID-19.

The payment was initially given in the form of a $750 lump sum payment for seven days. However, this changed slightly from 18 January into a tiered system. While it remains a lump sum payment, those who lose over 20 hours of work will receive the full $750, but if you lose between 8 and 20 hours, you will only receive $450.

A financial hardship test has also been introduced, which means anyone with $10,000 available and accessible to them will not get the payment.

You can find more information about Pandemic Leave Disaster Payment conditions specific to your state or territory here.

If you need any assistance with any of the points in this business update please reach out to us.

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