The annual growth, at 4.0 per cent, is the highest for the WPI since March quarter 2009.

What does this mean for SMEs?

The rising WPI is likely to have a number of implications for SMEs, including:

• Increased labor costs: SMEs will need to factor in the higher cost of labor when pricing their goods and services. This could put upward pressure on prices and potentially make it more difficult to compete with larger businesses.
• Skill shortages: The tight labor market is likely to make it more difficult for SMEs to find and retain skilled workers. This could lead to productivity losses and slower growth for SMEs.
• Wage bill inflation: The rising WPI will put upward pressure on SMEs’ wage bills. This could make it more difficult for SMEs to invest in other areas of their businesses, such as research and development or marketing.

What can SMEs do to manage the rising WPI?

There are a number of things that SMEs can do to manage the rising WPI, including:

• Reviewing their pricing strategies: SMEs should regularly review their pricing strategies to ensure that they are covering their costs and making a profit. They may need to increase prices in order to offset the higher cost of labor.
• Investing in productivity improvements: SMEs can invest in productivity improvements to help offset the higher cost of labor. This could involve investing in new technology, training employees, or implementing new processes.
• Focusing on employee retention: SMEs should focus on retaining their existing employees by offering competitive wages and benefits. They may also need to be more flexible with working hours and other conditions in order to attract and retain talent.

The rising WPI is a challenge for all businesses, but SMEs are particularly vulnerable. SMEs should take steps to manage the rising WPI in order to protect their profits and ensure their long-term viability.

Here are some additional tips for SMEs:

• Be aware of the WPI: SMEs should keep an eye on the WPI so that they can be prepared for future increases.
• Plan for the future: SMEs should factor the rising WPI into their business plans.
• Talk to their bank: SMEs should talk to their bank about their financial situation and see if there are any options available to help them manage the rising WPI.

The rising WPI is a challenge for SMEs, but it is not insurmountable. By taking steps to manage the rising WPI, SMEs can protect their profits and ensure their long-term success.

The post SMEs face rising labour costs as Wage Price Index hits record 26-year high appeared first on Small Business Connections.

Out today, Business Chamber Queensland’s 2023 Efficient Regulation Report shows both the time and cost businesses spend to meet regulatory burden increased, with 80% of businesses surveyed reporting major to moderate negative impacts from regulatory compliance.

It’s among the highest impact recorded since the survey began in 2009.

Key facts

• 82% indicated costs associated with red tape increased since 2021, with the median annual cost doubling in two years to $50,000.
• 80% of businesses indicated the time associated with meeting regulatory compliance has increased since 2021.
• 80% reported moderate to major negative impacts from regulatory compliance requirements.
• 70% indicated inefficient regulatory requirements had prevented their business growth.
• One in three employ staff especially to manage regulatory compliance.

Business Chamber Queensland works with the state’s business community to understand the impact of inefficient regulation and requirements on Queensland businesses and to track changes to the burden of regulatory compliance.

In 2023 the median financial cost to businesses was $50,000 with employing staff, paying taxes and building approvals among the most significant costs. It’s twice the cost reported in 2021.

Business Chamber Queensland CEO Heidi Cooper said businesses reported regulatory burden was an ongoing business issue and had considerable impact on their operations and ability to grow long-term.

“We saw this significant business impact across the whole business community from sole traders and micro businesses to medium and large businesses,” Ms Cooper said.

“We know through our data reducing red tape and regulatory burden is a major issue for Queensland businesses and one they look to governments to prioritise.”

The majority of businesses reported they spent up to five hours a week complying with regulatory burden, with some committing more than 20 hours per week.

More than 80% of businesses reported better communication and consultation when developing new regulations, as well as reduced regulation duplication, would help in reforming regulatory burden.

“For more than a decade we have been working with all levels of government to not only highlight the impact inefficient regulation has on business but to also identify opportunities for reform,” Ms Cooper said.

“To make Queensland productive, efficient and competitive there needs to be overall regulatory reform – to make it easier for businesses to work with government.

“This can happen by consulting with businesses early in the regulation process and working with industry groups for practical testing and business insight.

“At the same time, it’s important businesses aren’t expected to provide the same information more than once and similarly, the frequency of reporting should be reduced where possible.

“We have seen some development in regulatory compliance  in Queensland via the Better Regulation Policy but there is still work to do.

“It is crucial organisations such as Business Chamber Queensland continue to be an integral part of the ongoing conversation between business and government.”

Regulatory burden, or red tape, refers to excessive or unnecessary bureaucratic procedures which are difficult for businesses to navigate and comply with, separate to necessary and reasonable business requirements.

“One in three businesses employ staff specifically to manage regulatory compliance,” Ms Cooper said.

“At the same time we know business input costs are high so any additional expenses, like managing regulatory compliance, puts even more pressure on businesses’ bottom line – it’s a compounding impact on an already stretched and stressed business community.

“Now is the time for Queensland businesses to be positioning themselves for success and preparing for the significant opportunities ahead in our state.

“Regulatory reform is one way businesses can be empowered and supported to not only run day-to-day but to prepare for the future.”

A business story

Toowoomba manufacturing business owner Michael Briggs said he’d spent $300,000 on red tape in the past three years, meeting state and federal certification requirements.

The family business, which Michael’s father, Gary, started in 1985, converts four wheel vehicles to six wheels, allowing for extra pay load and towing capacity for commercial and private customers.

Six Wheeler Conversions has customers Australia-wide which means Michael needs a new certification approval for every vehicle model – with new models released every year.

He said new vehicle conversions required federal certification while modifications on pre-registered vehicles required state certification; dependent on where the customer was located nationally, converting 50-70 vehicles per year.

Michael said a new federal application system was implemented for second stage vehicle manufacturing approvals three years ago, quadrupling the approval process, typically taking more than five months per vehicle model.

“It has cost me about $300,000 over the past three years in consultancy costs, plus the missed opportunity cost considering how long the application process takes,” Mr Briggs said.

“I have spent more on certification in the past three years then I did in the past 10  years.

“We’re talking a minimum of 60 days but more often than not it can take 20 weeks or more.”

Michael said the existing certification process “wasn’t great, but worked”.

It would have been better if they had consulted, stuck with the old system then went through a trial to test and make sure it was fit-for-purpose,” he said.

Source: Business Chamber Queensland 

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The rising costs of doing business are having a significant impact on SMBs. A recent survey by the Commonwealth Bank found that 70% of SMBs are concerned about the rising costs of doing business.

SMBs are taking a number of steps to reduce their costs, including negotiating with suppliers, reviewing their product and service offerings, investing in technology, and outsourcing non-core tasks.

In this article, we will discuss some specific ways that SMBs can reduce their costs while surviving the rising costs of doing business in Australia.

1. Identify your biggest expenses. The first step is to identify your biggest expenses. This will help you to focus your efforts on the areas where you can make the biggest savings.

According to a recent survey by the Commonwealth Bank, the top five expenses for SMBs in Australia are:

1. Payroll
2. Rent
3. Utilities
4. Insurance
5. Marketing

2. Negotiate with your suppliers. Once you know your biggest expenses, you can start negotiating with your suppliers for better deals. This can include things like negotiating lower prices, longer payment terms, or discounts for bulk purchases.

3. Review your product and service offerings. Take a look at your product and service offerings and see if there are any areas where you can cut costs. For example, you could discontinue slow-selling products or services, or you could bundle products and services together to offer better value to your customers.

4. Invest in technology. Technology can help you to streamline your operations and reduce costs. For example, you could invest in accounting software to help you manage your finances more efficiently, or you could invest in customer relationship management (CRM) software to help you improve your customer service.

5. Outsource non-core tasks. If you have tasks that are not essential to your core business, consider outsourcing them to a third-party provider. This can free up your time and resources so that you can focus on the things that you do best.

6. Reduce your energy consumption. Energy costs are a major expense for many SMBs. There are a number of things that you can do to reduce your energy consumption, such as installing energy-efficient appliances, turning off lights and appliances when they are not in use, and weatherizing your premises.

7. Get government assistance. There are a number of government schemes that can help SMBs to reduce their costs. For example, the Small Business Energy Efficiency Program provides grants to SMBs to help them to upgrade to energy-efficient equipment and appliances.

The post Ultimate guide: reducing costs as an SME…despite rising costs appeared first on Small Business Connections.

“Online shopping exploded during the pandemic due to lockdowns. One only had to open an online store and people would buy. Now the market is normalising and digital is going to get tougher,” Siriwardhane said.

“We are just at the outset of the digital shopping journey and it has a significant way to go. Many businesses that started during COVID now need to focus on key areas of operation and service in order to survive and my advice is clear – act fast as the market is only going to become more competitive for everyone online.

“Many online retailers will find it difficult to cope if costs keep rising.  It takes a lot of people and a lot of time to pack and ship products to customers. Add to this the rising cost of shipping and then having to manage returns. Many online retailers are going to struggle. Sadly many will disappear including a lot of businesses that started up during the pandemic.”

B dynamic Logistics is part of the B dynamic Group of companies which provides a broad range of services including e-commerce enablement, third-party logistics, warehousing and branded and sustainable packaging. The group has grown significantly over the last five years amassing an impressive portfolio of clients including Dymocks, Dettol, P&G, Qantas, Costco, Georg Jensen, Bailey Nelson, and Universal Music Group, just to name a few.

“Online retailers are going to have to act quickly in order to survive over the next 12 months,” Sirwardhane said.

Outsource logistics and returns 

“For businesses that are currently managing their own picking, packing and shipping processes internally, now is the time to look at outsourcing this work. It doesn’t matter what size of business you are, outsourcing is cheaper. Logistics companies offer the benefits of economies of scale to achieve efficiencies that are not possible under a typical retailer’s roof,” Siriwardhane said.

“While everyone is being impacted by the rising cost of doing business, large logistics companies have the capacity through volume to absorb rising costs better than most. There are significant efficiencies that can be achieved through sheer volume and scale.

“In addition, they utilise commercial-grade systems and technology including robots that enable the work to be done in a fraction of the time and at much less cost. Take advantage of logistics providers in this market.

“You will probably find that once you have outsourced this work, you will never go back to doing it yourself.”

Increase your reach

“Not many businesses are aware, but much of the work we do as an e-commerce enabler and third-party logistics company involves helping our retailers to reach more customers online,” Siriwardhane said.

“We don’t just help to store and ship your products, we also help you to ensure your website reaches as many consumers as possible with an increased propensity to buy. This involves helping business owners to plug their websites and products into larger platforms such as Amazon.

“This is where the magic happens. Our competitive edge is our ability to achieve significant outcomes through clever thinking.”

Re-evaluate your packaging

“While packaging is important, it also adds costs.  Heavy and bulky packaging increases the costs of delivery,” Siriwardhane said.

“Working with a good logistics company will assist you to understand how you can reduce your operational and delivery costs through simple measures such as minimising or changing the packaging.”

Review your costs for delivery

“Online retailers need to think strategically about their market base and how far they are prepared to service certain areas,” Siriwardhane added.

“Remote areas cost more to reach. Review your market to determine whether you need to reduce the physical range of areas you ship to. If you continue to do service these areas, you may need to add extra cost to deliveries. These are decisions a good third-party logistics provider can assist with.

“They work with many brands and can provide the benefit of their experience and understanding of what is happening in the market.”

Consider the frequency of deliveries

“Same-day or next-day delivery is a brilliant service for businesses that have the capacity to undertake this type of service,” Siriwardhane said.

“For businesses that don’t perhaps, a revised frequency and cost structure could be put in place to enable the business to absorb rising costs. Give customers the option to pay more for fast shipping or less for regular shipping.”

Set up collection hubs 

“Removing last-mile delivery can reduce your costs of parcel delivery significantly,” Siriwardhane said.

“Partner with other businesses to become collection points for your parcels so customers can collect items at their convenience. This is ideal where you don’t have a physical location. All you need to do is ship items to these sites for certain cities or states. It is certainly cheaper than delivering items directly to customers.”

The post Surviving inflation: 6 Ways to boost your bottom line while selling online appeared first on Small Business Connections.

Fabian Calle, managing director, small and medium business, SAP Concur Australia and New Zealand, said, “As a business owner, success often hinges on maximising profitability and maintaining a healthy cash flow, which can only happen by establishing control over spending. To overcome this challenge, businesses must address the inefficiencies and gaps in traditional manual processes, such as paper-based expense reporting and invoice approvals, that often lead to delays, inaccuracies, and lack of real-time visibility.”

Automated expense and invoice management solutions provide an essential toolset for businesses aiming to enhance control over spending and boost efficiency. Not only can businesses gain speed, but they will also have a new way to monitor and manage spending to maximise their profitability. Adopting automation lets employees submit expenses from anywhere and businesses speed up their accounts payable process and payments.

By implementing automation in these areas, businesses can gain several benefits, including:

1. Real-time visibility into spending 

One of the key challenges faced by businesses of all sizes is the lack of real-time visibility into employee spend. Manual processes—like paper-based expense reports and invoice approvals—can lead to delays and errors, making it hard to respond to market conditions with agility. By automating expense report creation, approval workflows, and reimbursement processes, businesses can access up-to-date spending data. This visibility lets businesses identify spending trends, control costs, and adjust their operations accordingly to ensure cash flow is managed effectively.

2. Established and enforced policies 

Automated expense and invoice management solutions can help businesses establish customisable spending policies tailored to their unique needs.

Fabian Calle said, “By defining specific spending limits, approval workflows, and expense categories, businesses can ensure compliance and prevent poor spending. Intelligent policy controls embedded in an automated platform can flag non-compliant expenses, reducing the risk before it occurs.”

3. Streamlined processes and improved efficiency 

Manual tasks, such as expense report and invoice management, can be time-consuming and prone to errors. If businesses have limited resources, these inefficiencies can have a significant impact on productivity. By automating these processes, businesses can eliminate paper-based tasks, reduce manual data entry, and streamline workflows, empowering employees to focus on strategic work rather than getting caught up in administrative burdens. Better yet, by eliminating mundane tasks, businesses can improve employee satisfaction, retention, and overall productivity.

4. Cost reduction and improved forecasting 

Automated expense and invoice management solutions give businesses access to valuable data analytics capabilities. By leveraging the data collected through automated processes, businesses can gain deep insights into spending patterns, identify cost-saving opportunities, and optimise budgets. Data analytics can uncover trends, highlight areas of excessive spending, and inform strategic decisions for better spend control. Businesses can generate comprehensive reports, perform accurate forecasting, and track key performance indicators to drive profitability.

How automation can help fuel future growth 

By automating manual processes, businesses of all sizes can gain better control over spending and make smarter decisions.

Fabian Calle said, “Providing employees with tools that simplify their work processes can greatly enhance their experience, especially automated solutions that provide mobile apps and user-friendly interfaces that guide employees through expense reporting and invoice management, making their lives easier and more efficient.

“Faster reimbursements and reduced unnecessary manual tasks also demonstrate to employees that they are valued, and businesses can create an environment that promotes employee satisfaction, loyalty, and engagement. Ultimately, automation can help businesses experience superior spending control, paving the way for more insightful decisions, amplified efficiency, and greater profitability.”

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The results revealed that shoppers are curbing their spending and becoming more cautious with their purchases in the current economic climate. The data also indicates consumers are relying more heavily on user-generated content (UGC), such as ratings, reviews, and shopper photos, to make decisions and that social media impacts every stage of the shopping journey, from discovery to purchase. 

In addition to Australia, the survey encompassed six other countries: the UK, the USA, France, Germany, Canada, and Spain. The data highlights that Australian consumers are among the most cautious, with 73.9% stating they have altered their shopping habits and 80.2% reporting they have cut back on discretionary spending. 

Most Australians (~66%) have also reduced spending on “practical” (described as justifiable and reasonable items) and “delayable” (shopping that can be postponed) purchases, with only UK consumers showing higher reductions. 

The only area that has seen smaller reductions is in “essential” purchases (considered necessary for survival or healthy living), with 29.2% reducing spending, 20.3% increasing it, and 49.8% maintaining previous levels. 

Further data illustrating the reduction in consumption comes from those who buy on impulse. Among these consumers buying cheaper products, only 2.8% report shopping by impulse. 

More than eight in ten Australian shoppers (80.5%) say they are relying on content from other consumers as much or more than they did last year to make purchasing decisions. They primarily seek information related to value for money (65%), products’ quality (49%), and if the item suits their intended use (45.9%). 

The survey reveals that a significant percentage of respondents feel more confident in a purchase when they use shopper content (61.7%) and are unlikely to buy a product without shopper content (39.0%). 

“This year’s study underscores the economic impact on Australian shoppers’ behaviours and their reduction in spending,” says Kate Musgrove, APAC Managing Director at Bazaarvoice. “The data also reveals how, in times like these, consumers depend even more on fellow shoppers for advice and view social media as their primary source for product discovery and purchases.” 

According to the survey, social media significantly impacts shopping behaviour, from product discovery to purchasing decisions, with 49.1% of respondents agreeing that they often discover products or services through social media channels. 

Globally, 73% of shoppers aged 18-24 have purchased something on social media in the last year, and three-quarters (76%) say they are more likely to discover a product through social media than through any other means. 

Also read: While inflation is cooling here are 6 tips to stay alert

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Lyndall Spooner, founder and CEO of Australian strategic research and consulting agency, Fifth Dimension and leading authority on matters of brand trust, states that retailers are pushing hard to get a slice of Australia’s burgeoning Facebook Marketplace and Gumtree market as the economy continues to tighten and consumers look to second-hand goods to save money.

“The economy is tipped to get tougher over the next 12 to 24 months which means that an increasing number of consumers will turn to second-hand markets to source products,” Spooner said.

“The second-hand market has traditionally been seen as a way for people who are doing it tough to save money, and second-hand goods that were not on trend had a stigma of not being desirable, hence their cheap price. Well, that mindset has been flipped on its head. Second-hand items are now incredibly popular as we broaden what is on trend in popular culture and are more encouraging of people to express their individuality. Second-hand items can offer exclusivity and an expressionism that is distinct from what is in stores, which helps set people apart when they are looking to differentiate themselves in environments such as social media.

“As a result, these markets are tipped to grow exponentially over the coming years. Clearly, retailers want a slice of the second-hand market, especially retailers selling high-value items. Launching a second-hand market as part of a retailer’s offering is a clever way of capturing a slice of the second-hand market while also expanding the retailer’s relevance and customer reach and extending its customer loyalty program beyond traditional boundaries.

“The introduction of retailer-led second-life goods programs is fast becoming the next frontier for retail. Not only will it deliver significant gains for retailers it will also deliver significant benefits for consumers.

”Consumers will be able to sell back unwanted items and purchase new second-life items at a significant discount compared to the price of brand-new items.”

Key findings:

• Retailers are pushing hard to capture a slice of the burgeoning second-hand market
• Offering a second-hand market under the retailer umbrella keeps customers connected to the brand and increases the brand’s desirability
• It also keeps customers within the scope of the brand’s loyalty program
• A retailer second-hand market also provides the brand with the ability to support sustainable practices by offering products a second life as part of the circular economy

“Already, many retailers have introduced second-hand markets and consumers can expect to see many more retailers introducing their own version of a second-hand market in the near future,” Spooner said.

“Decathlon, the world’s leading designer, manufacturer and retailer of sporting goods introduced its Second Life program in Australia this year. The program enables customers to purchase certified refurbished items at a discount of up to 50 percent.

“It also supports the recycling of Decathlon sporting equipment with environmental initiatives and provides customers with the ability to sell items no longer needed and have them prepared for a new life of use and adventure.

“IKEA has already introduced a second-hand market – Shop As Is. With IKEA’s Buy-back, customers can sell IKEA their pre-loved IKEA furniture and IKEA will give it a second, third or fourth life.”

Spooner emphasised that luxury brands in particular, as well aware of the impact of cost-of-living pressures on their customers and sales which is a key reason why many are embracing second-hand sales.

“Across the world, we are seeing brands move beyond sustainability to take control of the preloved market in order to stay relevant and connected with their customers,” Spooner said.

“Gucci, Alexander McQueen, Chloé, Lululemon are just some of the luxury brands that have embraced the second life concept in one form or another enabling customers to access preloved items in a safe and controlled manner.

“This is also helping premium brands to reduce the incidence of counterfeiting which is rife across the broader second-hand market space.  In addition to the cost benefits for consumers and the ability for brands to retain connection with their customers, retailer-led second-hand markets provide consumers with a safe place to trade second-hand items which helps to maintain brand trust.

“We are already seeing competition in resale platforms increase. The challenge for brands is to stay relevant to their existing audiences while developing tactics to increase their reach to new audiences while at the same time maintaining their brand reputation and market positioning.”

Spooner emphasises that retail brands need to now think about the benefits of designing iconic and higher quality items that can be loved by consumers and continue to be sold or used by one generation to the next. A consumer may not be able to afford the initial price, but they could afford the second-hand price. There is nothing stronger than the emotional reward of desperately wanting something and being able to finally own it, regardless of whether it is new. And in a modern world, there is now a second emotional reward knowing that something you purchased but not longer suits you can go on to be used and loved by someone else and not end up in landfills.

The Boston Consulting Group reports that the second-hand market is already worth between three and five percent of the overall apparel, footwear, and accessories sector and could grow to as much as 40 percent depending on macroeconomic conditions.

“We will see more retailers introduce second-hand markets in Australia over the coming years and the impact will be beneficial to the entire market as well as the planet,” Spooner added.

Also read: How least-cost routing can save small businesses $1 billion

The post What’s driving consumers and businesses to secondhand markets? appeared first on Small Business Connections.

We’re not restricted to having the right amount of cash in our pocket or wallet and paying by cheque is now so rare and ancient that it is going to be phased out.

But the simplicity and convenience of making instant electronic payments in person or online masks an incredibly complex structure that creates massive black hole of hidden costs for consumers and small businesses.

Across our economy, merchants are paying higher fees and charges than they otherwise should, worth a staggering $1 billion a year. The Reserve Bank found that, on average, these fees cost small business twice as much as what it costs a large business to process the same transactions.

It’s one thing to applaud small business as the engine room of the economy but why do we then put a heavier load on that engine that strangles a productive, innovative and more competitive economy and when cashflow is so critical to small business?

The solution is to mandate a system called least-cost routing so the fee charged to small businesses is always the lowest fee available.

Most of the cards we carry are “dual network,” meaning they typically have a Visa or MasterCard logo and an eftpos logo. When we buy something using the card, unless we instruct the merchant or website otherwise, the usual default is to a more expensive international network.

This is most prevalent when we tap-and-go or buy online.

Sometimes the customer sees the fee but in most cases they do not and it is charged to the merchant who cops it on the chin or passes it on to the customer as a surcharge by adding it to their prices.

Everyone loses – except the banks and payment companies.

We all know the rising cost of living, inflation and sharply higher interest rates are creating intense pressures on our lives. Mandating least-cost routing would be a simple step that could help to ease some of that pressure by $1 billion across the economy if it was fully implemented.

Recent changes to the payments system announced by Treasurer Jim Chalmers are a positive step because they aim to give the Reserve Bank more power to lean in when overseeing the performance of payment service providers, which will ultimately promote stronger competition in the payments market and lower payment costs for small business.

The Reserve Bank has revealed a woeful roll-out of least-cost routing technology by the major banks after repeated urgings to act.

Despite reassuring words, the National Australia Bank has remarkably only turned the system on for 15 per cent of its merchants and the other major banks offer it to well under half their customers.

The banks and major card providers claim customers don’t want least-cost routing. That’s laughable when they have done all they can to go slow on it. Too many people (both consumers and merchants) simply don’t know it exists. For example, how many people know they can choose the payment network in their mobile wallet or how to do it?

And how many small businesses have been supported to make the change that will save them money when margins are under real pressure?

Buy now, pay later providers have no interest in promoting this either. Average transaction costs in 2020-21 were six per cent of the transaction value compared to just 95 cents for the average debit transaction. That’s a difference of $496 million.

We need to better explain how the payment system works and have a more transparent fee structure to allow comparisons, support informed choice and promote competition. ASBFEO has mapped out a path to ensure that $1 billion annually is not needlessly gouged out of small and family businesses.

It is time to mandate least-cost routing and have an easy-to-use system to make payments that comes at the least cost for consumers and small businesses.

Written by: Bruce Billson, the Australian Small Business and Family Enterprise Ombudsman.

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Here are some tips for small business owners to navigate the current environment:

• Review your costs and identify areas where you can save money. This may involve negotiating better prices with suppliers, streamlining your operations, or reducing waste.
• Pass on some of the cost increases to your customers, but be careful not to alienate them. You need to strike a balance between maintaining your margins and keeping your customers happy.
• Focus on building customer loyalty. This can be done by offering excellent customer service, rewarding loyal customers, and building relationships with your customers.
• Offer value-added products and services. This will help you to differentiate yourself from your competitors and attract new customers.
• Have contingency plans in place in case of supply chain disruptions. This may involve sourcing supplies from multiple suppliers or holding more inventory.
• Be cautious about investment. Make sure that you have a clear business plan and that you are investing in projects that are likely to be profitable in the current environment.

In addition to these tips, small business owners should also be aware of the following government initiatives that can help them to reduce costs and improve their productivity:

• The Energy Efficiency for Small Business program provides grants to small businesses to help them improve their energy efficiency.
• The Instant Asset Write-Off allows small businesses to immediately write off the cost of eligible assets worth up to $20,000.
• The Small Business Tax Offset provides a 16% tax offset for small businesses with an annual turnover of up to $50 million.

Small business owners can also access a range of support services and advice from the government and other organizations. For example, the Australian Small Business Advisory Services (ASBAS) provides free and confidential advice to small businesses.

By taking advantage of these resources and following the tips above, small business owners can increase their chances of success in the current challenging environment.

The post While inflation is cooling here are 6 tips to stay alert appeared first on Small Business Connections.

Regional Skills Relocation Grant NSW

This program helps regional NSW businesses in identified industries attract skilled and specialised employees from NSW metropolitan areas, interstate or internationally, to regional NSW. Funding of up to $12,500 is available.

Eligible costs covered by this grant include the following relocation expenses:

• furniture removal, including removalist services or trailer/truck or ute hire to relocate the employee’s home/residence
• pet boarding for up to 3 months
• travel for employee and immediate family to relocate
• temporary accommodation for up to 3 months
• furniture storage for up to 3 months.

Electric vehicles rebate

The NSW Government is offering $3,000 rebates for the first 25,000 new battery electric and hydrogen fuel cell vehicles with a dutiable value of less than $68,750.

This incentive, along with the abolition of stamp duty, will save eligible EV purchasers up to $5,540.

The stamp duty exemption and the rebate for all eligible EV purchases will end on 1 January 2024.

Small Business Export Loan

The Small Business Export Loan provides small to medium export businesses with loans to cover up to 80% of the costs to secure an export contract or purchase order with an overseas buyer.

Funding is available for:

• contracts and purchase orders
• export market development
• general working capital
• equipment finance
• tourism services
• online business growth.

Loans of between $20,000 and $350,000 are available, to cover up to 80% of your export contract(s) or purchase order(s).

Small business skills and training boost

Small businesses with an aggregated annual turnover of less than $50 million will be allowed an additional 20% tax deduction for external training courses delivered to employees by registered training providers.

The boost applies to eligible expenditure incurred from 7:30 pm AEDT on 29 March 2022 until 30 June 2024.

Energy Savings Scheme

The Energy Savings Scheme (ESS) provides NSW businesses with financial incentives to invest in projects which will reduce their energy consumption. Incentives are available to install new equipment or modify a current system.

Different equipment and processes are eligible, including but not limited to:

• lighting
• heating, ventilation, and air conditioning (HVAC) systems
• motors, fans and pumps
• compressed air systems
• refrigeration
• power systems
• hot water and steam systems
• furnaces
• switching to new fuels such as biofuels, biogas and other renewable sources like solar irrigation

Export Finance Loans

Small to medium businesses can apply for loans from $350,000 to help them secure the finance required to meet specific export contracts or purchase orders when traditional lenders are unable to help.

To be eligible, you must:

• have an annual turnover of over $250,000
• be unable to get financing from your bank
• have been established for at least 2 years
• be an Australian registered company with an Australian company number (ACN)

Textile, Clothing and Footwear Corporatewear Register

Employers can register their non-compulsory uniform and accessories, which allows their employees to obtain tax deductions for the cost of renting, buying or maintaining their clothing. Employers are eligible for fringe benefit tax (FBT) concessions on any contribution they make towards their employees’ uniforms.

Find more grants using the Federal Government’s grant finder tool or the NSW Government’s grant finder.

Also read: Costs of business inputs like labour, capital and energy top concerns for SMEs

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