The Jobs and Skills Summit delivered positive outcomes for some businesses while others may require finance to support their operation in the shorter term. As a result of many migrant workers, temporary visa holders and international students leaving Australia in the early stages of the pandemic and not yet returning, the domestic labour market has been extremely tight. Unemployment has hit a near record low of 3.4% and the result is intense pressure on many business, constrained capacity to produce and lower production and productivity. The labour shortage has been flagged as a contributor to inflation due to the supply limitations it creates. These are issues noted by the
RBA in recent monthly statements.
With many businesses facing major problems recruiting staff to fill roles to enable full production, owners and operators would be looking to the Jobs and Skills Summit to deliver solutions. Solutions are clearly required to address immediate staffing issues as well as better equip the country with the skills required into the future.
These are just some of the issues that were on the agenda at the Summit and which formed the basis for the announcements for action to be taken by Government. Some of the outcomes represent opportunities for businesses to move their operations forward. But such movement may also require cost-effective finance.
Some business owners may be disappointed that the outcomes do not go far enough to address the immediate labour problem. For those, finance to support the operation in this immediate period, to overcome the obstacles until longer term opportunities can be realised will be required.
Wages growth was also on the agenda and this may have an impact for business. It is widely acknowledged that wage growth in Australia has been very sluggish for some time and many households are under intense pressure from cost of living price hikes as inflation soars. But from a business perspective, any rise in wages is an increase in business operating costs and would want to be met with productivity and production improvements.
We canvass the options available to business through finance to capitalise on the opportunities presented by the Jobs and Skills Summit as well as options for those requiring additional support in an interim period.
Instant Panacea? Iso Rules Relaxed
For businesses trying to juggle staff rosters around the 7 day COVID isolation rules, relief is now available. National Cabinet agreed to reduce the period to 5 days. So staff will be back on the job sooner and hopefully offer at least a level of relief for business owners.
Especially in face-to-face environments such as hospitality, medical, aged care and retail, this is a critical step forward. However, if it’s not enough to see your business through at the moment, speak with our consultants about the option of a
Business Overdraft Facility. Even if you have been rejected by your bank for such a facility or do not choose to approach the bank, we have options through non-bank lenders.
Jobs & Skills Summit
The objectives and scope of the topics to be covered at the Prime Minister’s Jobs and Skills Summit were set out by the
Treasury Department. They cover creating opportunities, wages growth, developing a better Australian workforce through skill development by establishing common ground with key stakeholders.
Prior to the commencement of the two day Summit, a forum, called the Roundtable, was held in Sydney with many industry bodies represented. The discussions of this event also provided input for the main Summit.
At the main Summit, many groups and organisations were represented from both the business/employer and worker side. The event resulted in a number of key announcements by the Government which are now being addressed and taken to the next level of action. Further may be expected as the information and discussion content is addressed and assessed.
These announcements included:-
- Longer stays for graduating international students.
- Longer temporary worker stays.
- Increased threshold in the income level for temporary workers.
- Skilled migrant numbers to be upped by 35,000 from the current 160,000.
- Age pension recipients allowed to earn and additional $4,000 pa before their extra income results in an effect on the amount of their pension.
- A new visa announced to allow a further 9,000 workers from overseas into the country to assist the pressures in the ag industry and contribute to reducing food prices.
- Training and development initiatives on a state-based and federal level to address longer term skills issues.
Commercial Finance Options to Capitalise on Opportunities
Individual businesses will make their own assessment of how these outcomes will benefit their operation. For many, it will mean opportunities to expand by acting on asset investment plans. For others it may mean that additional support is required through commercial loans until the true effect of relief on the labour shortage front can be realised.
Commercial loans options include:-
- Asset acquisition finance through Chattel Mortgage, Leasing, Commercial Hire Purchase and Rent to Buy.
- Business Overdraft Facility
- Debtor Invoice Funding
- Secured and Unsecured Business Loans
- Insurance Premium Funding
As all our commercial loans are customised to suit the individual business, these may represent workable solutions for your current staffing and hence production issues.
Contact Business Finance on 1300 000 033 to discuss the commercial loans options to address labour shortage issues for business.
DISCLAIMER: THE SPECIFIC PURPOSE IN PROVIDING THIS ARTICLE IS FOR GENERAL INFORMATION ONLY. IT IS NOT INTENDED AS THE SOLE SOURCE OF FINANCIAL INFORMATION ON WHICH TO MAKE BUSINESS FINANCE DECISIONS. BUSINESS OWNERS WHO REQUIRE ADVICE OR GUIDANCE AROUND THEIR SPECIFIC FINANCIAL CIRCUMSTANCES ARE RECOMMENDED TO CONSULT WITH AN ADVISOR OR ACCOUNTANT. NO LIABILITY IS ACCEPTED IN REGARD TO ANY MISREPRESENTATIONS OR ANY ERRORS RE ANY DATA, SPECIFICS, POLICIES AND OTHER INFORMATION AS SOURCED FROM OTHERS.
