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Minimizing Owner Dependency: A Vital Step in Maximizing Business Value

When it comes to preparing your small or medium-sized enterprise (SME) for sale and optimizing its market value, one significant factor looms large: owner dependency. In the world of mergers and acquisitions, prospective buyers are understandably cautious about investing in a business that is overly reliant on its owner.

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Wage Subsidies Available

Workforce Australia advises that financial support up to a maximum of $10,000 may be available to businesses that hire new staff. Wage subsidies may be available to businesses that hire eligible individuals into ongoing jobs. Wage subsidies can be up to a maximum of $10,000.

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Significant Changes Coming to Modern Awards Starting May 1st, 2023

Significant Changes Coming to Modern Awards Starting May 1st, 2023

The new shutdown clauses in modern awards will come into effect from 1st May 2023.

The most significant change for many employers will be removing the ability for an employer to direct an employee to take a period of “leave without pay” if that employee does not have enough annual leave accrued to cover the shutdown period.

Some modern awards currently have this provision, although most do not.

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Fixed-rate Housing Loans: Monetary Policy Transmission and Financial Stability Risks

Fixed-rate Housing Loans: Monetary Policy Transmission and Financial Stability Risks

The RBA has posted an informative article highlighting the effects of the COVID-19 pandemic on fixed-rate housing loans. It found that during COVID, the value of fixed-rate housing loans increased substantially, which has delayed the effect of the higher cash rate on borrowers’ cash flows. A key issue for the economic outlook, and by implication financial stability, relates to the ability of borrowers with fixed-rate loans to adjust to substantially higher borrowing costs when their fixed-rate mortgages expire. Borrowers with expiring fixed-rate loans face large increases in their repayments. Fixed-rate loans have riskier characteristics than variable-rate loans.

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