July is always a busy month for business with the closing of the books of one year and starting a new financial year with new beginnings.
As you would be aware (at least I hope so after a $40m public education campaign), this new financial year saw personal income tax cuts come into effect on 1 July 2024. On the same day the national minimum wage increased by 3.75% ($24.10 per hour, or $915.90 per week). Traditionally, there is no correlation between an increase in minimum wages and inflation but with the income tax cuts adding extra money into the pockets of most Australians the Reserve Bank of Australia (RBA) has noted the potential impact this might have on inflation. With the labour market remaining very tight locally with unemployment at 1.8% for June, wage pressures might see even further money in the local economy.
The latest Business NSW business conditions survey is interesting reading with our region having the highest business confidence across NSW. Having experienced eight consecutive months of forward order declines, business confidence remains in negative territory and with ongoing concerns around cost-of-living pressure on consumer spending habits, energy price rises and insurance increases, businesses are understandably circumspect over the medium term outlook.
The RBA Governor Michelle Bullock has stated on several occasions that inflation, not interest rates, are at the heart of cost-of-living pressures. I note that inflation has reduced from its peak of 7.8% in December 2022 to 3.6% in the March quarter but increased again in May to 4% dampening expectations of an interest rate reprieve. Interest rates remain a blunt instrument for the RBA to attempt to control inflation but as I noted at the State of the State Leaders Forum a few weeks ago business productivity remains in negative territory and until this improves CPI will remain a challenge. I have included in this month’s newsletter an overview of productivity and ways to increase productivity in your business.
The State of the Region and State of the State events in July provided our members with the opportunity to gain valuable insight and economic statistics to help with business planning. Katrina Paterson from .id provided hyper localise data on the Tamworth LGA economy whilst Stephen Galilee from NSW Minerals Council, Sean Hovey from QUBE and Kevin Anderson, Member for Tamworth provided those at State of the State a great overview of the opportunities that Tamworth has to offer and insights into navigating change in business. With the Tamworth Intermodal Freight Hub fully operational and work starting this week on the Tamworth UNE Campus these two projects are examples of productive infrastructure that will result in long term value to our community with the support from both public and private stakeholders.
Last week we closed off the 2024 QBA nominations with over 1000 nominations across over 400 individual businesses with some fantastic applications for the judges to start reviewing. Judging is underway and we are only days aways from announcing the finalists. Tickets for the all-important night in September will go on sale shortly and if last year is anything to go by they will sell out in record time. Our newest staff member Abbey, and Kate are working on the final plans for what will be a wonderful celebration of all things business in our region.
We have also introduced our latest monthly networking program with the inaugural “Business After 5” night at Apollo Engineering. These events will include a presentation by the host, an introduction of any new members and any updates from the Board or guests that showcase our members and regional opportunities. Keep an eye out for the upcoming events and get your tickets to avoid disappointment.
Written by: Matthew Sweeney
Tamworth Business Chamber President
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