The sixth of February 2024 could be a day to remember for home loan sufferers and business owners, with Parliament kicking off today for the first time this year to accept or reject the new stage three tax cuts. Meanwhile, the RBA will make its first call on interest rates with a new-look board at 2.30 this afternoon. Many Australians will be hoping we hear something about future rate cuts!
Yep, this could be a big day for lots of people with hip pocket problems.
We know what the Albanese Government wants — their new tax cuts, which means over 11 million people get bigger tax cuts and wealthier taxpayers get tax cuts but smaller cuts than was planned by the Morrison Government.
The big question possibly to be answered today is this: how will the Coalition move with this new stage three tax cut regime? If they stand in the way of them, they could lose a big chunk of the 11 million taxpayers who are happy about the changes.
This is a big test for Peter Dutton as a leader and strategist. The PM has been on a losing run until his tax change call, and he’s trying to do what Paul Keating called the Road Runner play.
This is where the PM runs so fast (just like the Roadrunner cartoon character) that it leaves no room left on the road for the Opposition leader to drive their policies on.
Meanwhile, the Government will gain if the new RBA Governor comes out and hints that rate cuts are possible, provided inflation keeps falling. One thing Albo and his Treasurer Jim Chalmers won’t want to hear is talk that more rate rises are possible.
The simple facts are more tax cuts in the pockets of consumers will make home loan repayments easier and that will ultimately help consumer spending and business will benefit from this injection.
And businesses have loans, so rate cuts are a plus for business as well.
Falling interest rates and bigger tax cuts could help us avoid a recession but it could also keep inflation higher. So, they are policies that could come with a sting in the tail for the Government later in the year. If inflation stays sticky and higher than 3%, then the RBA won’t cut and Albo has a problem ahead of next year’s election.
Of course, to business owners, high rates and taxes are no help to their businesses but neither is not having a plan to grow your business. No business should win or lose based on the big winds coming from the economy and governments.
My long history of interviewing and studying the legends of business tells me that business owners need to be influenced by great mentors, coaches and processes or systems that make the difference to an OK operation and a really successful one.
I was thinking about this when I was preparing a speech for a conference, I’m speaking at this Thursday along with the legendary small business speaker and entrepreneur Verne Harnish.
Verne started the Young Entrepreneurs Organisation (YEO) that helped tens of thousands of entrepreneurs build great businesses. Guys like James Stevens who created Roses Only and other flower businesses is a case in point.
Anyone who has a growing business could benefit from the Scaling Up summit.
I actually asked the organizers for a discount for Switzer and 2GB listeners and I asked the following questions a potential attendee might like to know. Here they are:
• Who is the event for? Founders, CEOs, and business leaders looking to scale and grow their companies.
• Why should anyone attend? Attendees will learn exactly how to grow and scale their businesses from world-class speakers including Verne Harnish, Anna Samios, and Peter Switzer. Plus, network with likeminded business leaders, and open the doors to new partnerships in 2024.
• Cost? To a business is it tax deductible? What is the discount? Yes, it’s tax deductible. Tickets start at $897. Can access $50 off each event pass using the code SWITZER50 at checkout.
• Location: The Star, Sydney.
• Day and time: Thursday 8 Feb, from 9am-5pm.
By the way, the organisers say there’s only 13 tickets left!