by Alan Thornhill
Small business people are paying some of Australia’s interest rates.
And they are severely depressed.
The Reserve Bank reports that while recent interest rate cuts have mostly been passed on in full to home buyers, banks have kept rates high for their business customers, particularly those in small business.
“Lower official interest rates had been fully passed on to housing loan rates, but significantly less so to business lending rates, in particular small business rates,” the Reserve bank said.
So no-one should be too surprised to find that a new survey confirms that Australia’s small business owners are severely depressed.
The survey, conducted by the Australian Chamber of Commerce and Industry, shows confidence at its lowest level ever, in the current series of surveys, which began in 1996.
The survey also found that small business owners expect the Australian economy to weaken further over the next 12 months.
And it revealed that there are already indications of rising unemployment in this sector.
“Prospects for small business remain weak amid global recession fears and waning business and consumer confidence,” the chamber said.
It said fresh tax cuts are needed to encourage business investment.
Alan Thornhill is a parliamentary press gallery journalist.
Private Briefing is updated daily with Australian personal finance news, analysis, and commentary.
Thursday May 23
The Dow Jones Index fell 80.02 points to 15,307.60
Man, believed to be a British soldier, hacked to death in the London suburb of Woolwich, in an apparent terrorist attack
- Sharon Coulton on Proposed family tax benefit scrapped
- Pete on Rudd government had entered “paralysis:” Gillard
- Liam Knuj on The Prime Minister, Julia Gillard’s, New Year’s Message
- Change is for the better,change is where your heart grows stronger on Family Assistance boost
- Harry on The Prime Minister, Julia Gillard’s, New Year’s Message
|Aud To Usd||0.9664||N/A||N/A|
|Bhp Blt Fpo||35.170||-0.100||-0.28%|
|Origin Ene Fpo||13.430||-0.040||-0.30%|
The News This Week
- What was Joe really saying?
- Slow payers squeeze business
- Paid parental leave? Look again
- What went wrong:Treasury chief explains
- Working smarter works:Swan
- More rate cuts possible
- Employers urge moderation in the national wage case
- The right man for the job? Wrong question!
- Small business:a warning
- Where’s Gonski now?
- Super:the political questions
- Abbott casts a wide net
- Tony Abbott offers “Real Solutions”
- Disability bill passes Parliament
- Investment scam closed
- Airlines (62)
- Banking (2159)
- Business (2264)
- Communications (50)
- crime (12)
- Disaster (103)
- Economics (2229)
- Environment (100)
- Financial advice (2019)
- Health (81)
- Housing (622)
- Inflation (508)
- Insurance (90)
- Investment (1875)
- Markets (1638)
- Media (117)
- medical (20)
- mining (168)
- pay (70)
- Politics (2207)
- population (73)
- Regulation (916)
- retirement (64)
- Rural australia (100)
- Security (19)
- Social security (229)
- Superannuation (212)
- Tax (351)
- The latest (4)
- Trade (540)
- Uncategorized (334)