Government support for small businesses

The Federal Government and the States and Territories are all keen to support the establishment and growth of small businesses in Australia. A robust small business environment has strong flow on effects for the rest of the economy and as such, encouraging investment and training as well as providing grants to budding entrepreneurs are important aspects of government support for small business.

Funding

The difficulty for many small businesses is finding finance to bring their ideas to reality. Many of the best business concepts don’t come to fruition due to the lack of funding available. Fortunately, there are grant programs available through government agencies to support small businesses in finding adequate funds to start up a new business or grow their existing venture. For example, the Repayable Contributions Program offers various avenues of access to funds for small businesses. Some programs take the form of interest-free, unsecured repayable loan, where all or part of the loan is repayable or conditionally repayable depending on the terms and conditions of the contribution agreement. Please see www.grantslink.gov.au for more information on grant programs.

Training Programs

Training assistance programs are another incentive tool that governments have up their sleeves to encourage investment in small business. Some programs provide financial funding to encourage business owners to create long-term employment opportunities, especially with regards to unemployed individuals and post-secondary graduates. Other programs offer wage subsidies to eligible employers in exchange for employers providing job experiences to post-secondary graduates or unemployed individuals.

In addition to money, the government provides a number of programs which offer valuable services and resources. These might include skills training programs, consulting services, mentorship programs, the opportunity to attend trade fairs abroad and introductions to potential suppliers, partners and customers. In many cases, these services would normally bear a substantial cost, so you're not only getting the business building value of the service, but you're saving money, too!

Helpful Government Links

http://www.australiangovernmentgrants.org/programs.php

http://www.ausindustry.gov.au/Pages/AllAusIndustryPrograms.aspx

http://www.grantslink.gov.au/Info.aspx?NodeID=2

http://www.business.gov.au/BusinessTopics/Grantsandassistance/Pages/default.aspx

http://www.digitalbusiness.gov.au/

http://www.accc.gov.au/content/index.phtml/itemId/815214

http://sblegal.innovation.gov.au/

http://www.innovation.gov.au/SmallBusiness/Pages/default.aspx

http://www.smallbiz.nsw.gov.au/

LOST SUPERANNUATION

Did you know that billions of dollars is sitting in lost superannuation accounts waiting for Australians to claim?

Lost super is a special term used to describe superannuation benefits that are recorded in the Lost Members Register. Your super benefits may be recorded as lost if your super fund cannot contact you due to changes in your member details or similar events. You may also have lost super if your account has not received any contributions in the past 5 years. If you change jobs regularly or you have had part-time jobs while at school or university, then it is highly likely that you have more than one super account. On average, every working Australian has three super accounts.

Should I be concerned if I think I have lost superannuation?

Don’t worry if you haven’t kept track of your multiple accounts. It’s never too late, but you must locate your super accounts before you can roll them over into one super account.Generally, your super fund/s sends you a statement each year reporting your account balance and fund returns. If you’re not receiving these statements and/or don’t know which super funds that you belong to, then you have access to plenty of services to help you find your lost accounts, and increase your super benefits instantly.

 

 

 

 

 

How can I find out if I have lost superannuation?

• Use the ATO’s SuperSeeker service (www.ato.gov.au/super) which searches the Lost Members Register and other ATO records, such as unclaimed super money, for your lost super accounts. You can also contact them on the phone for advice and information ( 13 28 65).
• Try AUSfund (www.unclaimedsuper.com.au) which looks after the lost super of millions of Australians for some of the largest super funds in Australia. If they have your super, they will find it free.
• Ask your current super fund if they offer a service for finding your lost super.
• Ask your previous employers for the names of the super funds that received contributions on your behalf

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Australian Market Outlook

Even though economists are positive on the outlook of the Australian share market for the remainder of 2011, there are still some concerning factors which have kept average returns in the red over the past 11 months. The European debt crisis, which began as concerns around Greece and its debt servicing ability seem to have spread further in the European Union, with Ireland and Portugal looking increasingly unstable. Further market instability has been seen with increasing oil prices a result of political instability in the Middle East and North Africa. These factors have kept the Australian market quiet on trade and discouraged investment over the past year. Looking forward we should see some of these issues regarding EU debt ease, although not quickly, as the global economy continues to recover post GFC. China’s economic growth has continued and this has benefitted Australia’s large resource companies as strong demand for its products continues. There may be a slight dampening of such demand as the Chinese government attempts to curb inflation on the back of fast economic growth.

The first six months of 2011 has seen the share market fall short of expectations due to events and concerns beyond our shores. Even so, our economy and the businesses that operate within it continue to grow and rebuild, albeit slowly, from the repercussions of the GFC. The forecast for the Australian economy is very strong for the next couple of years. This view is underpinned by the expectation that unemployment will continue to decline and stabilise around 4-5% as more labour resources are required. This is particularly true for the mining and resource service sectors.

Australia’s terms of trade have recently been upgraded creating an income surge which will quickly flow throughout the entire economy with workers, corporations and the government all benefiting.  Recent concerns regarding US debt have also had a negative effect on the All Ordinaries. However, recent developments suggest this too is improving with retail sales and production figures up and a trillion dollars’ worth of government spending cuts agreed upon in principle by the US government.

The mood across global markets appears to be decidedly downbeat and the reality is that 2011 was always going to be a tough year. In the short term at least it appears the australian market will continue to respond to poor global conditions and fears of another GFC.  However the outlook for the Australian economy is improving and we would expect this economic strength to be reflected in the market movements hopefully toward the end of this year and into 2012.

*The advice provided is of a general nature only. Everyone's financial situation varies so please contact a financial planner at EFS on (02) 9868 3900 for a financial plan that meets your needs.

Elite Financial Solutions ABN 32 077 847 486 provides its financial planning services as an Authorised Representative of Count. ‘Count’ and Count Wealth Accountants® are the trading names of Count Financial Limited, ABN 19 001 974 625. AFS Licence Number 227232. Principal Member of the Financial Planning Association of Australia Limited.

AUSTRALIAN SHARE MARKET OUTLOOK