Urge for business rates to decrease
(3 February 2009 – Australia) The Council of Small Businesses of Australia has urged Australian banks to cut business interest rates in line with RBA decisions.
The Council of Small Businesses of Australia urged that the February 2009 rate reduction, today announced by the RBA to be 100 basis points, be passed on to small business customers.
The Council of Small Businesses of Australia said that up to 500,000 jobs are being put at risk because banks have refused to pass on interest rate cuts to small business customers.
While the official rate is less than half of what it was one year ago, the council said that overdraft rates are actually 0.5 percent higher than they were one year ago.
The council’s general manager, Peter Strong, said that without the support and cooperation of the banks, small businesses are at risk of going under and taking hundreds of thousands of jobs with them.
People are talking about a 20 percent decline in business across the nation and if that was a 20 per cent impact on employment in small business, that would be half a million people, Strong added.
At the same time, the Federal Government has announced a mini-budget to spend $42 billion on what has been described as nation building and jobs, including a range of tax breaks for small businesses that total to A$2.7 billion.
The Council of Small Businesses of Australia said that up to 500,000 jobs are being put at risk because banks have refused to pass on interest rate cuts to small business customers.
While the official rate is less than half of what it was one year ago, the council said that overdraft rates are actually 0.5 percent higher than they were one year ago.
The council’s general manager, Peter Strong, said that without the support and cooperation of the banks, small businesses are at risk of going under and taking hundreds of thousands of jobs with them.
People are talking about a 20 percent decline in business across the nation and if that was a 20 per cent impact on employment in small business, that would be half a million people, Strong added.
At the same time, the Federal Government has announced a mini-budget to spend $42 billion on what has been described as nation building and jobs, including a range of tax breaks for small businesses that total to A$2.7 billion.
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