Australian Newsagency Blog

A blog on issues affecting Australia's newsagents, media and small business generally.

Small business newsagents and the budget

Mark Fletcher
May 14th, 2014 · 2 Comments

We are being bombarded with words about the Federal Budget last night so I figured I join the fray – not on the whole thing as that will just anger but more on some points that relate to small business newsagents.

Those of us making a profit will gain from the cut in company tax is it passes in parliament. We will benefit if the commitment to finally address unfair contracts with small businesses comes to fruition.

Changes to training programs could increase labour costs.

The big question is how consumers will react, especially in the hardest middle and low income areas where benefits have been cut and new taxes imposed such as the $7 GP co-payment … it’s a tax, right? Newsagencies serving such hit families in number could feel an impact at the register.

The biggest impact on newsagency businesses from this budget will be felt in consumer behaviour. If people have less money in their pocket they will spend less. If they feel at a greater financial risk they will spend less. Given the imbalance of those hit by this budget, we ought to expect impacts.

Now is the time to adjust our businesses for such impacts.

While I appreciate the cut in company tax and the commitment on contracts, these are less tangible to me than families serve having less disposable income.

11 likes

Category: Newsagency management

2 responses so far ↓

  • 1 Stacey // May 15, 2014 at 12:37 PM

    I’m interested to see the details on the $10K incentive for employing workers over 50.
    We are fortunate to have EXCELLENT staff however being an affluent retiree demographic I’d like someone that can sell on the floor more so than operating lotto. Whilst I may find a younger person that can do this, I’d rather someone over 50 whom has the confidence and experience to converse with our clientele.

    2 likes

  • 2 BruceZ // May 15, 2014 at 2:00 PM

    Mark your comments about customer behaviour strikes a chord. A lot of it is about how they PERCEIVE their lot in life. I often serve a customer who is busy bending my ear about how they are broke they are while they are sucking on a takeaway coffee from the nearby cafe and buying maybe $25 worth scratchies etc from me.
    I hope these whingers don’t perceive too much poor me poverty coming out of the budget!
    In my shop we concentrate heavily on positivity and laughs where possible and that seems to work.

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