‘Team Australia’: big business urged to help in crisis
Businesses will receive COVID-style relief as firms face an existential blow from the Iran war.
Data released by the Australian Industry Group on Wednesday showed industrial conditions posted the biggest monthly decline on record in March.
The Australian Industrial Index fell 19.9 points to -23.6, with businesses reporting uncertainty, rising input costs, supply chain and demand disruptions as the main issues they were grappling with.
To help manage the blow, the Australian Taxation Office will temporarily give businesses struggling with cash flow greater flexibility to pay their tax liabilities.
Finance Minister Jim Chalmers said this would include generous payment plans, interest and penalty reductions and the ability to change pay-as-you-go installments where taxable income falls.
Some tax compliance and debt collection measures will also be paused.
“What we’re announcing today will make our systems more resilient, our supply chains more responsive and also more supportive of businesses,” Dr Chalmers told reporters in Canberra.
The government will also extend responsible lending obligations to small businesses to help businesses access credit faster.
“The purpose of this specific measure is to ensure that there is no additional regulatory burden or further delay when they need to access credit to keep their doors open,” Small Business Minister Anne Aly said.
Business Council chief executive Bran Black said individual businesses were already taking action to support small firms through the crisis, including paying suppliers more frequently and ensuring fuel costs were reflected in payments to suppliers.
“This is really one of the points where we need a real response from Team Australia. This is not empty rhetoric,” Mr Black said.
He urged small businesses to reach out to the larger companies they deal with and ask for support if they’re struggling.
Australian Banking Association chief executive Simon Birmingham said lenders were also standing by to help.
“Australian banks recognize the unique responsibility they must shoulder in times of crisis,” the former Liberal leader said.
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