Alon Rajic, founder and CEO of business loan comparison site Small Business Loans Australia, has undertaken extensive research to unearth six challenges that SMEs are likely to encounter this financial year.

As the 2024 financial year unfolds, Australian businesses are bracing for tough economic challenges amid growing concerns of a possible recession should interest rates continue to increase, higher cost of labour and less generous tax incentives. While SMEs appear particularly vulnerable during these uncertain times, many are showing resilience and a willingness to adapt.

While Alon urges SMEs to acknowledge the hurdles awaiting them, he is a proponent of seeking out emerging opportunities. He says: “A tighter and costlier employee market, rising rates, tougher borrowing criteria, inflation and continued supply chain challenges paint a gloomy picture for the business sector. Business owners must vigilantly stay informed about available resources, changes in government policies, and other opportunities that can help mitigate these challenges and secure the long-term success of their ventures.”

Alon says the need for vigilance and adaptability has never been more pressing. “To weather the storms on the horizon, SMEs must keep eye on early warning signs of economic changes and seek innovative ways to tackle challenges while uncovering untapped opportunities that could be their path to success in the years to come.”

Below are 6 challenges SME can expect before FY25:

1. 68% of SMEs can’t fill job vacancies. Job vacancies in Australia remain at unprecedented levels since the GFC, with research showing 68 per cent of businesses are still struggling to find suitable staff. Micro businesses are hardest hit, with almost 80 per cent are unable to fill job vacancies. The impact varies across industries, with 90 per cent of job vacancies being in the private sector.[1] While health and tech industries show some improvement, hospitality, manufacturing, and agriculture sectors continue to face significant challenges, with up to 100 per cent unable to fulfill vacant staff roles. (The full study: https://smallbusinessloansaustralia.com/sme-employees-2023/). 

2. Late payments and tighter lending is impacting business cash flow. Amid worsening economic conditions, numerous SMEs will find themselves dependent on business lending as their cash flow diminishes. Among the challenges anticipated in recent research, 30 per cent of SMEs expect difficulties in collecting customer payments and 26 per cent in attracting sales. While may sound like good news that the loan values made to SMEs have increased in recent years, data shows an alarming number have no financial lifeline at all and 50 per cent face daunting obstacles when attempting to access bank loans. (The full study: https://smallbusinessloansaustralia.com/is-australia-doing-enough-to-improve-access-to-capital/.)

3. Small and large businesses are paying more for labour. This financial year, employers are paying more for labour, whichever solution they look to – potentially impacting growth plans for some small businesses. Since July, companies have been paying a higher, 11% rate, for superannuation and a higher minimum wage of $23.23 per hour. Those looking to sponsor migrants will also pay more, with the base salary of sponsored employees lifting to at least $70,000 a year – up from $53,900. 

4. 1 in 2 SMEs are ploughing through recession fears and focussing on growth From bushfires, floods, lockdowns, inflation, labour shortage and interest rate increases, Australian businesses have faced unprecedented challenges in recent years. Despite these obstacles, Small Business Loans Australia research revealed that half (48 per cent) of SMEs are expanding this year, even while they believe there is a risk of recession. This is more than twice the proportion of respondents (22 per cent) who focussed on growth in 2022.  (The full study: https://smallbusinessloansaustralia.com/growth-in-recession/.)

5. Rising interest rates and bank fees. Rising interest rates and bank fees may motivate businesses and individuals to switch over to alternative fintech solutions. A survey commissioned by Money Transfer Comparison revealed that 8 in 10 Australians believe their banks’ fees are unreasonably high, and 2 in 3 are willing to switch to innovative fintech services with competitive fees. Not only can SMEs take advantage of potentially lower fees, but also digital innovations such as international transfer, digital credit cards, Buy Now Pay Later (BNPL) options, expense tracking, rewards programs and cashback services. (The full study: https://moneytransfercomparison.com/leaving-banks-fintech/.)  

6. Limited asset ‘write-off’ rules. New rules for asset write offs are only benefitting small businesses this financial year. From 6 October 2020 to 30 June 2023, businesses earning up to $5 billion could immediately write off all eligible capital assets without a financial limit. The tax rules how specify that businesses turning over less than $10 million can write off up to $20,000 per asset. Small businesses with an annual turnover below $10 million can immediately deduct eligible assets under $20,000, used or installed before 1 July 2024. 

According to Avast, phishing attacks are a leading threat to SMBs. To help safeguard SMBs’ data, devices, and their people, Avast has released a new Cybersecurity Training Quiz. The quiz is available free for small businesses that want to train their employees about online threats.

The quiz is available to any individual or business but is specially targeted at small and medium-sized businesses that want to provide training for all employees without additional investment. Individuals who complete the quiz will receive a confirmation of passing each module. 

With phishing and scams being the largest threat to small businesses, according to Avast, individuals are unfortunately often the weakest link in companies’ security. This new free tool allows people to test their knowledge about digital safety easily and without any cost. Currently, training modules focus on three areas: Data Security, Identity Management and Social Media Security. Individuals who complete the quiz receive a confirmation of passing each module.  

Growing threats for businesses 

Online threats to businesses are ever-changing, making true online safety an ongoing journey. Zero-day vulnerabilities and ransomware extortion continue to be some of the most concerning threats to businesses – and are the most well-known – but data from Avast shows that phishing of employees is often the first mode of entry for malicious actors. According to Avast, scams and phishing attacks are a leading threat to SMBs. 

“Raising awareness about the many threats to small businesses and educating customers on cybersecurity is a vital part of helping small businesses remain safe and protected,” said Massimo Rapparini, General Manager & Head of SMB at Gen. “We’re proud to use our extensive in-house knowledge to provide this type of training for free through the Avast Cybersecurity Training Quiz.”

In a world where tech gadgets are fast becoming necessities, dash cameras have evolved from a luxury add-on to an essential component of modern driving. Dash cameras now serve as an unwavering second pair of eyes on the road, ensuring every drive or location is able to capture road incidents as they happen.

Whether you’re a car enthusiast or an everyday driver, the latest range of dash cams in the Australian market provide irrefutable evidence in case of incidents and serve as both a deterrent against theft and a critical asset in insurance claims.

Without a dash cam, determining the truth can be a stressful and complicated process with accounts for each individual account often contradictory. With a dash cam serving as an impartial and steadfast witness, you have access to the hard evidence required for an accurate and fair resolution.

Dash cameras rise to the challenge of Australian roads, offering an extra layer of security and peace of mind for all drivers.

Dash Cameras are a must-have for the following reasons:

1. Capture first-hand evidence: in the unfortunate event of a car accident, a dash camera provides the most reliable and accurate first-hand evidence. It can clear up any ambiguity about who is at fault, potentially saving you from unwarranted liability or insurance complications.

2. Indispensable for professional and personal use: dash cameras are not just great for personal vehicles – they are equally important for professional drivers as well. Uber drivers, driving instructors, and parents teaching their teenagers to drive can significantly benefit from a dash camera. It offers an unfiltered view of what happens during a drive, providing an excellent tool to correct driving errors, settle disputes, and ensure driver safety.

3. 24/7 car surveillance: Your dash camera can serve as an invisible security guard for your car. Equipped with a parking mode feature, it starts recording as soon as it detects any movement or activity around your vehicle. This means you’re always aware of what happens near your car even when you’re not there.

4. Promotes safer driving habits: some dash cameras come with advanced features that alert drivers about upcoming fixed speed and red light cameras, helping avoid possible traffic violations. They can also come with a footage lock protection feature, ensuring critical evidence remains safe and unaltered.

Brad Hales, national marketing manager, Uniden, said, “In our increasingly digital age, staying connected and having immediate access to crucial information has never been more important. Dash cameras streamline the process of managing and storing essential footage. Beyond their functional value, these devices are designed with precision and style, integrating seamlessly into any vehicle while delivering superior video quality across all lighting conditions.

“Investing in a dash cam is as important as having a good insurance policy. While we hope you’ll never have to use the footage your dash cam records, the peace of mind that comes with knowing you’re well-protected in any situation is invaluable.”

As car owners, we can’t control every event on the road, but we can control how well-prepared we are to handle them. With a Uniden dash cam, you’re not just buying a gadget – you’re investing in peace of mind. Purchase a Uniden dash camera and experience the revolution in road safety for yourself.

Uniden Dash View 50R RRP AU$499.95

Uniden iGO CAM 90R RRP AU$349.95

The Tax Practitioners Board (TPB) is warning the public to be extra cautious this tax time and to be on the lookout for fake tax agents, also called unregistered preparers, trying to lure taxpayers into using their tax services.

Unregistered preparers operate outside of the law. They are often unqualified, poorly trained, and uninsured. Many are scammers who expose honest taxpayers to risk and potential penalties from the Australian Taxation Office (ATO). Taxpayers are being warned they are accountable for and will need to pay ATO penalties.

Unregistered preparers will often try to convince a client they can obtain unrealistically large tax refunds. Some will encourage the lodgement of fraudulent claims for refunds their clients are not entitled to. Others try to obtain your myGov sign in details, putting your personal information at risk. 

The TPB is continuing to be vigilant in combating this illegal behaviour and has recently brought a case to the Federal Court of Australia. TPB enquiries found that Anthony Dean Buckland, a previously registered tax agent, had provided tax agent services for a fee while not registered to do so. The Federal Court ordered Mr Buckland and his company, Apat Na Seasons Pilipinas Corporation to stop preparing and lodging income tax returns for a fee.

If Mr Buckland or the company breach this order, they may be in contempt of court and face penalties, including imprisonment for Mr Buckland. This order will remain in place until the Court hears the TPB’s civil penalty application against Mr Buckland and the company.

TPB Chair, Peter de Cure AM, warned, ‘if you see an unregistered preparer offering tax services, it pays to be alert and sceptical, especially when they are contacting you through social media. Taxpayers obtaining professional tax advice should engage a tax practitioner registered with the TPB. This can be done by checking this Register.

He continued, ‘anyone who has used the services of Mr Buckland or Apat Na Seasons Pilipinas Corporation should contact the TPB, urgently review their tax affairs and ensure their personal information is secure. Remember – never share your myGov password with anyone as it puts your personal and financial information at risk. You could easily become a victim of identity theft.’

Scams are one of the most pervasive Cyber Safety threats of our time. The sheer volume is staggering – people are collectively wading through 3.4 billion phishing emails on a daily basis – and scams are becoming more sophisticated and harder to spot without help. Norton, a leader in Cyber Safety, is inviting people to join in the fight against scams by offering early access to Norton Genie, a real-time AI powered scam detector, to provide an easy, fast and free way to check if texts, emails, websites and social media posts are a scam.

“Every day, we’re inundated with messages and scams that have become so believable that anyone, even the savviest of us, is just one wrong tap from becoming a scammer’s next victim,” said Ondrej Vlcek, President at Gen.

“We want to give people Digital Freedom – the freedom that can only be achieved when you’re safe and empowered online. Genie is an always on, easy-to-use, trusted advisor that helps you stay ahead of highly convincing scams. By bringing together best-in-class scam intel from Norton with advanced AI, we can empower people to take full advantage of the digital world safely, privately and confidently.”

Norton Genie is a brand new innovation from Norton designed to be as simple as asking for advice from a friend that’s available 24/7. With just a few clicks or taps, Genie will give immediate guidance on whether the message, email, link or post is potentially a scam and what to do next. Genie is powered by a unique combination of Norton expertise and advanced AI that’s trained on millions of scam messages and the red flags to watch for. As scammers adapt to new technology to make their attacks more convincing, now more than ever, people need AI on their side to help stay ahead of today’s ever-evolving scams. Norton Genie is constantly improving to help stop scammers in their tracks and help fight today’s scams and tomorrow’s.

Norton Genie is a comprehensive mobile app and web-based AI scam detector with the following key features:

• Fast, free and easy: You can upload a screenshot or copy and paste the text of a suspicious message and Genie will instantly tell you if a message or site appears to be a scam.
• Norton technology: Genie combines advanced AI with best-in-class cybersecurity data and technology to help identify scams before you engage. As part of Gen, Norton tapped into the company’s investment and application of AI research and innovation, decades of experience uncovering and remediating scams, phishing attacks, sketchy websites, and extensive library of known threats to create Genie.
• Protection that evolves: The more people use Genie, the smarter it gets. Our AI powering Genie will continue to learn and adapt to detect new scams and help protect against emerging threats. While Genie gets better and better with scam detection in messages, emails and social media posts, we will be hard at work developing additional ways Genie can protect people from other types of scams they could fall victim to.
• Trusted advice: Beyond telling you if a message is likely a scam, Genie takes it one step further by answering your most pressing follow-up questions. How did it know the message was a scam? What should you do next? Like a trusted advisor, Genie empowers you with the information you need to be safer in your digital life.

Norton Genie is still learning and in an early access phase. Genie is available now in Australia, Ireland, New Zealand and the United States, for free at Norton.com and the Apple App Store. Norton Genie is compatible with iOS 14.0 or greater, Chrome, Safari, Microsoft Edge and Firefox. Norton Genie is expected to become generally available, expand platform availability to Android, and enter additional markets later this year. To learn more, visit genie.norton.com.

It’s no secret that digitalisation has revolutionised the way we do business. From automating tedious administrative tasks to improving customer experience, it’s a powerful tool that can help to drive success on both a small and large scale.

Now more than ever, businesses are streamlining their operations with affordable technology that allows them to free up resources, save on costs, and improve their service overall. This is especially beneficial for smaller businesses with less than five employees. Most importantly, for small businesses the process of digitalising doesn’t have to break the bank if you follow the right approach. 

Make a clear, realistic plan

Digitalisation is a major change for most businesses, so it’s crucial that you have a clear plan of attack to ensure the process is as efficient and effective as possible. The first step is to consider your current operations and determine the specific pain points that you want to address. For example, you may decide that automating your sales processes is essential as it will eliminate the need to manually create sales orders and invoices, saving you time and money.

As you plan your digitalisation journey, it’s essential to consider what will be realistic for your business in both the short and long term. Implementing several big changes at once can be expensive and the rapid change can quickly become overwhelming and confusing for employees. Instead, start by prioritising the areas where technology will have the most significant impact and continue to innovate from there.

Prepare for organisational changes

One of the biggest advantages of digitalisation is its ability to improve and streamline tasks that were once performed solely by employees. While this can save you and your team valuable time and money, it also means that job roles within your business are bound to change.

Planning for change management as part of your digitalisation process will help you to better manage the transition and keep your employees engaged and motivated as their roles evolve. For example, if implementing new sales technology will save your team multiple hours per week, you may want employees to start using this time to explore new business opportunities or nurture customer relationships. By identifying these organisational changes and providing a clear plan, stakeholders will be more likely to see how digitalisation will improve their roles and the wider business.

Invest in the right digitalisation technology

Taking the time to research and consider the best technology options for your business is essential, as the best solution will vary depending on your budget, size, and goals. As a small business, it’s important to invest in technology that can scale with you as you grow. Keeping your goals in mind as you decide which option is best for your long-term needs is essential, as changing systems down the track will only be a waste of time, money, and resources.

It’s also important to avoid investing in isolated solutions that don’t integrate well with your existing or planned future technology. Isolated systems can quickly become outdated and can be difficult to implement seamlessly into your day-to-day processes. Making the digitalisation of your business as seamless as possible for your employees and stakeholders is crucial to ensuring it’s a worthwhile investment.

Prioritise cyber-security 

Investing in a good cybersecurity process should go hand-in-hand with your digitalisation plan. This is essential as digitising your operations often means that important information and sensitive data will be stored on cloud-based systems, which can increase exposure to cyber hacks.

A great cybersecurity system should include reliable software as well as employee education and training on how to keep data safe from cyber-attacks. Every employee plays a role in safeguarding your business from cyber threats, so it’s essential that you cover all bases to protect your business as much as possible. 

Provided by Craig Matthews, Chief Merchandise Officer at Office Brands. Australia’s largest independent business supplies dealer group, providing B2B and B2C retail, wholesale, and logistics solutions.

Plunging steel prices have helped bring building product price inflation to its lowest in almost three years but a bumpy road remains with accelerating inflation of other materials and labour shortages continuing to drive up the cost of building says Master Builders Australia chief economist Shane Garrett.

“During the June 2023 quarter, the cost of building materials increased by another 0.6 per cent, the smallest quarterly increase since the end of 2020.”

“While the slowdown in the overall cost of home building materials is welcome, there has still been a sizeable increase of 7.4 per cent over the past 12 months.

“The past year has seen sizeable drops in the cost of several crucial building materials. The 10.0 per cent drop in steel product prices over the past year was the most significant change, with a welcome reduction of 4.4 per cent in the cost of structural timber also occurring.

“Steel and timber were the source of the biggest cost headaches over recent years – the fact that prices here are now in reverse is something of a relief.

“However, the outlook is bumpy as even though the general trend in building materials prices is a favourable one, there has been a worrying acceleration in the cost of concrete, cement and sand products, a category where prices are now 16.2 per cent higher than a year ago.

“Total building construction prices rose 1.0 per cent in the June quarter and 6.5 per cent over the past twelve months predominately driven by labour shortages,” Mr Garrett said.

Master Builders Australia CEO Denita Wawn said the surge in building costs over recent years has taken a heavy toll on the cost of newly built homes and infrastructure across Australia.

“Latest inflation figures show that new dwelling costs rose by 7.8 per cent over the past year, exacerbating the housing affordability crisis.”

“The rental market has also been hit hard by the surge in new home building costs. During the June 2023 quarter, rental inflation hit its fastest pace since 1988.

“With building and construction costs skyrocketing since the pandemic, it is important that government policies prioritise productivity improvements, reduce supply constraints and maintain flexibility.

“The Federal Government’s proposed industrial relations reforms will have damaging consequences for the industry and further impact the increasing costs of construction,” Ms Wawn said.

Shopify has announced its 2023 Summer Editions, with a host of new Shopify features and products to help businesses get ahead of the curve so they can tackle today’s biggest challenges. This entails other brand-new AI capabilities, as well as several other products and features across the Shopify platform that help merchants easily run and grow their business. 

Here are the new Shopify features that will be available for Australian retailers:

More AI tools within Shopify Magic:  Shopify Magic is a suite of AI-enabled features that are integrated across Shopify’s products and workflows to make it easier for businesses to start, run, and grow their business. Now, Shopify Magic will now include:

• Sidekick – a first-of-its-kind AI-powered, purpose built for commerce assistant that will answer questions about business operations. Shopify’s founder and CEO Tobi Lütke gave a preview of what Sidekick can do from administrative tasks such as responding to customer inquiries to tackling creative challenges.
  • Merchants simply ask Sidekick questions ranging from, “how to set up a discount for a holiday sale,” to “help me segment my customers so I can better engage them in my marketing.”  
• AI-driven email campaigns – Make customer emails smarter and easier. All Shopify Magic needs is just a few words to produce engaging, tailored email newsletters, announcements, and more. It also powers intelligent recommendations for email sent time in order to drive higher click-through rates to a merchant’s store, automatically.

In addition to AI products, new Shopify features include: 

• Marketplace Connect: To integrate with major marketplaces, including Amazon, Walmart, eBay and Etsy, to reach even more customers wherever they shop 
• An even better Checkout: Featuring over a dozen new APIs to create customizable checkout experiences, making the best checkout in the world even better.