MESSAGE FROM OUR CEO – 14 July 2017

ENERGY PRICE CRISIS: Last week we published in the Broadcast two articles: Peter Strong: Why the energy debate has failed small business and Calls for government subsidies to prevent SMEs collapsing under “crisis level” energy prices that highlighted the crisis of power rapidly escalating prices besetting small businesses, one of the articles reports: “Price hikes for small businesses have been announced by a number of major electricity and gas providers in the lead up to June 30, and these have come into effect this week as the new financial year begins.”

The enormity of the crisis was sheeted home in the same article that reported: Small Business and Family Enterprise Ombudsman Kate Carnell “. . . believes not only will rising costs put SMEs out of business, but it will erode the point of difference for those who up their prices to survive.”

The report states that the Council of Small Business Australia (COSBOA) chief executive Peter Strong met with Minister for Energy Josh Frydenberg and Strong is looking for “a roundtable of business leaders and government officials to discuss solutions to the impending crisis.” He is also is reported to have said: “I’m looking to get together a roundtable of business groups to look at options of how to support retailers while the government’s policies come in, . . .”

Whilst in Western Australia small business has not experienced the enormity of the crisis besetting those in the eastern States and South Australia, on 22.5.17 ‘PerthNow’ reported: “WA Energy Minister Ben Wyatt has indicated household electricity prices could have to rise by up to 15 per cent within two years as part of moves to allow people to choose where they buy their power from.” That indicates WA is on the road following the other States and Territories. An issue that needs the urgent attention of Governments State and Federal, and a round table as proposed by Peter Strong would be a good start.

THE TAX WRITE OFF: “So, how do you know when you can write off an asset? Asks SmartCompany/Suncorp , July 11, 2017, see article below and check out how the system works.