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.