Cash flow pressures are crippling Australia’s small businesses — and Earlypay says now is the time for decisive action from government and industry alike.
Prime Minister Anthony Albanese's recent unveiling of a new Cabinet, including a new Minister for Small Business, Dr Anne Aly, represents an ideal time for the federal government to advance reforms that assist the small business sector, representing over 97.7 per cent of all Australian businesses.
James Beeson, the Chief Executive Officer of invoice finance specialists Earlypay, says the nation's small-to-medium enterprises need more support in areas such as taxation reform, addressing the skills shortage, and easing the regulatory burden.
"After an election campaign where neither major party came forward with a strong SME policy agenda, what's needed now is action," Beeson says.
"While the SME sector shares a lot of challenges as a whole, it's not a one-size-fits-all approach," Beeson says.
“Small businesses face very different challenges depending on their industry,” Beeson says. “Transport companies are grappling with fuel excise costs and the shift to decarbonisation, while labour hire firms are hit by wage inflation, skills shortages, and growing compliance demands.”
"These need to be addressed by a whole of cabinet approach as they fall under the remit of a range of federal ministers ranging from the Treasurer to the Industry Minister," Beeson says.
According to Beeson, Earlypay deals with SMEs across a range of sectors, which puts them in the unique position of being able to speak directly to each sector's unique financial challenges and cash flow pressures.
“We’re in the trenches with small businesses every day. That gives us a front-row seat to the financial pressure points — and a responsibility to speak up about what needs to change,” Beeson says.
For example, in the transport industry, cash flow gaps often lead to a shortage of finance when it comes to fleet maintenance. The same can be said for labour hire firms, which are confronting similar problems, including skills shortages, wage inflation, and increasing compliance complexity.
"Earlypay's invoice finance offering gives them immediate access to the cash they've already earned without waiting 30, 60, or even 90 days to get paid, and that cash can be used to pay suppliers, staff, or reinvest in growth."
Moreover, rising payroll tax burdens and changes to superannuation legislation rolling out over the next fourteen months are also putting an unnecessary burden on SMEs.
“When transport companies can’t service their fleets, freight slows down across the country. When labour hire firms can’t meet payroll, projects stall. These aren’t niche issues, they impact Australia’s entire economy.”
Beeson also agreed with recent comments from the Council of Small Business Organisations Australia (COSBOA) , which suggested reducing the small business company tax rate from 25 per cent to 20 per cent would provide immediate relief and drive investment across the sector.
"Tax reform coupled with a range of other measures such as cutting red tape and better addressing the skills shortage would help unlock the potential of the small business sector and drive the whole nation forward. There's no better time than right now to make these changes considering the strong mandate the federal government now has post-election," Beeson says.
About us:
About Earlypay:
Earlypay (ASX: EPY) is a leading provider of working capital finance to Australian small to medium sized businesses with its invoice finance and equipment finance products.
Earlypay’s invoice finance helps SMEs bridge the cash flow gap between issuing invoices and receiving payment from customers by providing early payment of unpaid invoices. Earlypay also provides equipment finance to SMEs to assist with capital expenditure.
Earlypay has been supporting Australian SMEs since 2001 and has built a trusted legacy of delivering reliable, flexible and innovative working capital finance.
Contact details:
For further information, please contact:
Anthony Spargo
New Romans
0400 688 525