Less than half of small businesses in Australia are ready for the new Fair Work Act.

The last component of the Fair Work Act is effective on 1 January 2010, and a survey of 352 small firms by CompliSpace shows that many are not prepared for the changes involved.

The new act replaces the Work Choices legislation of the previous government, with a new awards system and ten national employment standards.

The survey found that less than half of small Australian companies understand what is involved in the new laws.

Included in the new act are the following:

An extension of unpaid parental leave from 1 year to 2 years

Redundancy pay for all workers

Flexible work arrangements for carers of children with disabilities

De facto partner’s definition to include same sex couples

And the removal of carer’s leave restrictions that applied before.

The new award flexibility provisions mean that employers may now be obliged to pay benefits not previously provided, including overtime, leave loadings and penalty rates.

Small firms have a difficult time keeping up to date with their responsibilities.

We help by sending them prospects from our Local Search facility in our Australian Business Directory at no cost to them. Most of the 1.2 million firms listed are small businesses.



Monte Huebsch, CEO

The USA government was the cause of the housing sub prime lending expansion which was the catalyst of the global economic downturn.

The Clinton government used the Community Reinvestment Act to require the two primary home lending institution in the US, Fannie Mae and Freddie Mac, by 2007, to favour sub prime borrowers. 55% of their mortgages were required to be provided to low and moderate income borrowers, and 25% were to be for low and very low income borrowers.

The intentions were of course good, to assist low income groups to achieve home ownership. The sub prime mortgages were to help borrowers who did not have the capital for a deposit or the income level needed to service a mortgage.

As a consequence, there was a lowering of the lending standards normally required, with low deposits and lower interest rates applying for an introductory period. Wall Street cooperated by pooling these loans and distributing the risk to a wide investor market.

The sub prime loans were very popular, the theory being that rising house prices would provide additional equity in the property after two years of low interest payments.

The reduction of lending standards meant that home ownership in the US increased from 65% in 1994 to 69% in 1996. In 2002, President Bush continued the procedure, with a goal of 5.5 million additional home owners including 1 million minority home owners, by 2010.

Of course this did not work out as planned, with extensive mortgage defaults as interest rates rose and housing prices fell. The US home ownership rate is now down to 67.5%.

In Australia, the home ownership rate has been about 70% since 1960. This figure has remained constant in spite of the fluctuations in interest rates and the various government incentive schemes. The Reserve Bank reports that in Australia there are currently only 25,000 mortgages that are in arrears 90 days or more.

So the US government’s good intentions produced a disastrous outcome, which then spread globally as the US housing market imploded and the lenders failed.

Since small businesses in Australia often use their residential property as security for business borrowing, being spared the US experience has been a blessing. We assist small Australian businesses by providing them with prospects at no cost to them from our Local Search Facility in our Australian Business Directory.

There are 1.2 million businesses listed in our directory, most of which are small businesses.

Monte Huebsch, CEO

Most small businesses in Australia do not protect their data which is held electronically with an effective back up of the information.

A Kroll Ontrack survey of 900 IT managers found that 49% of small businesses had data lost in the last two years. In spite of this most small firms do not correctly back up data on a daily basis which is the normal practice with large companies. 

39% of small firms said that they were happy if it took several days to retrieve their data. There seems to be a lack of appreciation of the real cost of retrieving the data and the superior alternative of ensuring a daily back up. 

Only 51% of small organisations back up daily, compared to 81% of large companies. In addition, only 41% of small firms tested the restored data from their back up system monthly. 

Many small businesses use a USB external hard drive as their back up device which leaves a great deal to be desired regarding the security of the information. 

Large firms have a plan for how to respond in the event that a disaster occurs and they also have procedures for eliminating old data which is no longer needed. Small businesses generally have neither. 

There is a wide range of third party data service providers available to small firms where the data can be stored off site to protect it in the event of a fire, and it can be automatically updated daily. The cost is nominal and the risk exposure is eliminated if this action is effected. 

Small firms have had a difficult time during the economic downturn and loss of critical data is the last thing that they could cope with at this stage. We highly recommend that they look into the benefits of external automatic back up of their data to ensure that this cannot happen. 

We assist small Australian firms by sending them prospects from our Local Search facility in our Business Directory with no expense involved for them. We have 1.2 million businesses listed, most of which are small companies.
 

Monte Huebsch, CEO.

Improved confidence from Australian consumers and a tax deduction for businesses are reflected in increased passenger vehicle sales.

The Australian Bureau of Statistics reports that new passenger vehicle sales increased for the fifth month in a row in August, to 45,543 vehicles, a 10% rise since March.

Analysts suggest that the 30 June deadline for businesses to claim a 30% tax deduction for new assets purchased, fuelled much of the sales activity. 

Small business can still claim a 50% tax deduction for eligible assets purchased up to 31 December, so an additional sales peak for business vehicles should occur up to that time.

There have been falls in the number of sales of sports utility and other vehicles in recent months.

As the economic recovery in Australia develops, businesses are buying assets with the motivation of the tax break. It’s anticipated that sales will fall from January 2010 when that benefit has expired. 

One of the AussieWeb group, AussieWeb Conversion www.aussiewebconversion.com 
is working with Google to improve motor vehicle sales by using Google AdWords with the specific information of individual vehicles. This will assist buyers and provide motor vehicle dealers with a source of prospects which is much less expensive that the traditional channels. 

We help all Australian small businesses with our Local Search facility by providing prospects to the 1.2 million businesses listed in our Australian Business Directory, with no cost to them. The vast majority of businesses listed are small.

 

Monte Huebsch, CEO

The Federal Government will make the Export Finance and Insurance Corporation able to provide funding for small businesses to assist with their export efforts.

The Federal Government announced that it will extend the authority of the Export Finance and Insurance Corporation so it can offer finance for small Australian businesses to help them to export their products and services and expand their overseas operations.

A new eligibility test will be introduced for smaller companies, who are defined as having yearly revenue of up to $100 million.

A Dun and Bradstreet report this month says that 46% of Australian businesses expect increased sales in the December quarter. But even though the outlook is improving, smaller firms have difficulty obtaining finance for export or offshore activity.

The extension of the Export Finance and Insurance Corporation’s capacity to fund small firms requires a legislative change.

The smaller Australian business will be offered finance, finance guarantees, bonding, and insurance facilities to develop export markets.

As the economic climate improves, small businesses will be the driving force of improving the level of employment and need all the assistance they can get.

We help with our Local Search facility in our Australian Business Directory, which has over 1.2 million businesses listed. Most of the listings are small businesses, and we provide them with qualified prospects at no cost to them.

Monte Huebsch, CEO.

Online assistance is available for small Australian businesses regarding the new Fair Work Act.

A new website www.fairfworkforsmallbusiness.com.au has been established to help the 85% of employers who are affected by the recent changes to the industrial relations rules.

A Council of Small Business spokesperson said that the new laws, which were effective from I July 2009, involved alterations for the vast majority of small businesses, and most were not aware how they were affected.

The website is a $2 million investment, funded by the Federal Government, and it will provide online assistance and information to assist small businesses to understand the changes that are necessary.

Some important issues covered are:

   1. What is the definition of a small business?
   2. What is “unfair dismissal”?
   3. How is redundancy pay to be calculated?
   4. How will the new Modern Award system apply?

 The information is delivered in 5 sections: an overview, unfair dismissal, Fair Work Australia, compliance, and collective bargaining.

The web site provides the information in English, Arabic, Greek, Mandarin, Cantonese, Italian, and Vietnamese.

Since small businesses do not have the capacity to meet the cost of professional advice in the industrial relation area this is a welcome assistance in making the changes less difficult.

Small businesses in Australia have had a difficult time in the economic downturn and need all the help they can get.

We are also helping them with our Local Search facility with directs qualified prospect to them from our Business Directory, which has 1.2 million businesses listed, without cost to them. The vast majority of the listings are small businesses.

Monte Huebsch, CEO.

 

Embedded Systems Australia is helping small businesses cooperate to compete with larger firms in the area of technology.

The Australian Bureau of Statistics reports that Australian small businesses in 2007-2008 exported 39% of goods, but that was only 1% of export revenue.

Over the same period, large companies exported 10% of goods, but made up 93% of export revenue.

The OECD reports that only 9% of Australian businesses cooperate with a partner in the creative process of a new venture and only 5% collaborate with a research institution.

To address these issues, in 2007, research and industry bodies formed Embedded Systems Australia, to ensure that small businesses had the necessary connections for assistance in developing new technology products and systems.

In August, at the Retail Expo in Melbourne, success stories in Point Of Sale marketing and radio frequency identification technology, and wireless technology for dedicated short range communication, were displayed.

The wireless technology project had seed funding from the NSW government, with the individual companies involved owing a percentage of the new business.

Embedded Systems Australia is keen to have small firms cooperate to share the work in Australia’s National Broadband Network development and also is reaching school students to encourage them to look at careers in technology.

Small businesses have a very real disadvantage regarding capacity and access to funding compared to large companies and this is a step in closing that gap.

We help small Australian businesses to compete effectively by providing prospects from our Local Search facility in our Business Directory, with no cost for the 1.2 million businesses listed, most of which are small businesses.

Monte Huebsch, CEO.

 

The Federal Government’s tax incentive will boost sales of the new Microsoft Windows 7 operating system and new computers.

Microsoft launches its new operating system, Windows 7, on October 22 and the Federal Government’s 50% tax deduction for the purchase of computers and software runs to December 31.

Analysts report that the new Windows 7 operating system is a substantial improvement on the current Vista system regarding speed, stability and ease of use. 

Many businesses will buy new computers with Window 7 installed rather than upgrade the existing XP or Vista systems, which can prove to be a painful experience. 

So sales of new laptops and desktop computers are expected to increase until the tax deduction period expires. 

While compatibility was a major problem with Vista, the Windows 7 system will run programs like Quicken and MYOB, when those programs are refreshed. 

Because the ability to continue to use existing software is an important aspect of upgrading an operating system, Microsoft has incorporated a feature named Windows XP Mode in Windows 7. This creates a virtual PC that allows applications to run as usual, in this virtual mode on XP. 

XP Mode will be available only in the Professional; Enterprise and Ultimate versions of Windows 7 and the PC must use a high end processor. 

An improvement in productivity is helpful at this time, when the end of the economic downturn is beginning to appear in Australia, with new job ads increasing in the last month, as opposed to falling every month in recent times. 

Australia is the only country in the developed world to have avoided a technical recession, but the price that has been paid is the large government debt incurred in stimulating the economy and a very productive period is needed to cope with that debt. 

We assist business productivity with our Local Search facility in our Australian Business Directory by providing qualified prospects to the 1.2 million businesses listed, at no cost to them. 

Monte Huebsch, CEO.

The Australian economy had .6% growth in the June quarter.

The Australian government’s $42 billion stimulus package has ensured that the country has avoided a recession. The economy grew by .4% in the March quarter, making Australia the only country of the developed economies to not have been in recession.

In the June quarter, household spending increased by $1.8 billion. Treasury estimates that there would have been a reduction if not for the $900 cash payments. Government payments to households totalled $7.4 billion in the June quarter.

Business spending on plant and equipment in the quarter increased by $1.3 billion, which was mostly for the purchase of company cars to take advantage of the investment allowance involved in the stimulus package.

The estimate of the effect of the stimulus package is that the economy would have contracted by 1.3% in the last year if it had not been applied.

Investment in new dwellings and renovations dropped 11.1% since last September and commercial construction also reduced by 8.8% in the quarter.

In the quarter, large and small businesses had 6.2% lower profits, wage and salary incomes were 1.6% lower and tax revenue fell.

Treasury estimates that the stimulus package has saved 150,000 jobs up to June, mostly in the retail field, which switched from laying of 12,500 people each quarter to hiring 8,000 people a quarter.

So while the economic injection has kept people in work, the underlying economy is still weak and will take time to recover.

Small business has largely retained employees and will benefit from an improvement in business conditions. Many European countries and Japan are now out of recession, but the US economy is still flat.

Australian small business is the primary source of employment and we assist them with our online local search facility which provides qualified prospects for them from our business directory portal, at no cost to them.

Monte Huebsch, CEO

The Preventative Health Taskforce report suggests that the cost of keeping staff healthy should be met by Australian employers.

A report by the Australian Government’s Preventable Health Taskforce says that employers could have a levy applied, a percentage of their payroll, to meet the cost of health programs for their workers. 

This suggestion is one of 35 made in the report, which is targeted at reducing obesity, and alcohol and tobacco abuse. 

The government says that these health matters involve a cost to the Australian economy of in excess of $31 billion. 

11 million working Australians would be involved in the scheme to improve their health via their place of employment. 

The report says that 5 million Australians are overweight. 1.3 million are obese, and this accounted for 4.25 million days lost from work. Obesity is worst in workers 45 to 64 years of age, approximately 33% of the national workforce. Sick leave for this group is at twice the rate of those who are not obese. 

The report argues that businesses will benefit from improved health of staff with reduced absence due to illness and enhanced productivity. 

The report suggests that the government legislate to effect the changes. 

The Taskforce says that the funding of the scheme could be done through tax incentives for businesses or through the imposition of a percentage of the business’s payroll. 

While the benefits of improved health of employees are substantial, the burden of meeting the cost by businesses, especially small businesses, would be a very real burden at this time in the economic cycle. 

We are assisting Australian businesses since Online local search is now an important source of new prospects for small businesses and our Business Directory Portal provides qualified prospects with no cost involved for the business. 

Monte Huebsch, CEO.

Online shopping has few security concerns for Australian consumers.

The Visa e-Commerce Consumer Monitor reports that 78% of Australian consumers using the internet are happy with the security involved in online payment systems and are comfortable with providing their personal information and credit card details.

The report says that a known brand for credit card clearance, a guarantee of protection from fraud online, and a return policy if the customer is not satisfied, are the most important aspects required to nullify concerns.

The major issues of worry reported were the possibility of hackers accessing their credit card details and their personal information, the retailer incorrectly applying their credit card, or supplying their information to others.

As consumers are increasingly time poor, the use of online shopping continues to grow while main street retailers have to try even harder, using sales with reduced margins to retain growth figures.

Retailers in unusual fields such as groceries are now trying to profitably establish an online distribution channel.

This is good new for the businesses listed in our Australian Local Search Business Directory. With over 1.2 million businesses in our directory receiving good exposure on Google and other search engines, the confidence of consumers in making online payments is critical to the success of many of these businesses.

Monte Huebsch, CEO.