The Australian Taxation Office (A.T.O.) has provided the following statistics;
- There are more than 2 million small businesses in Australia. The A.T.O. define a small business entity as a business with total turnover of less than $2 million.
- 96% of all Australian businesses are small businesses.
- Small businesses account for over $330 billion of Australia’s economic output.
- Small businesses employ over 4.5 million people, which represents more than half the Australian workforce.
- In the 2015 financial year, 20,018 Australian businesses became insolvent. The main reasons for insolvency were:
-inadequate cash flow
-poor strategic management, and
- The A.T.O. found that 65% of small businesses found that managing cash flow was their biggest concern.
- The majority of small business either don’t seek advice or seek it only from informal sources, when starting their business.
- Poor cash flow and management of cash flow are the main causes of outstanding taxation debt.
Should you have and queries in relation to small business please feel free to contact Peter Quinn by submitting an online enquiry or calling us on +61 2 9580 9166 to book an obligation free appointment.
The information in this document does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser.