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It’s been stated many times before, ‘a glass half full’ or a ‘glass half empty!’
What do you see and say?
The optimist says, ‘the glass is half full’, while the pessimist says it's a ‘glass half empty’
This metaphor can be applied to many situations in life, personal, professional, the economy and indeed the way we approach and live our life.
There is no right or wrong approach!
Optimists usually look on the bright side while the pessimists are more likely to search for the black cloud behind every silver lining.
A glass half full is an attitude, a way of thinking and seeing the good things in a situation, the possibilities, rather than the bad or negative. For the optimist there is still water in the glass to drink! These optimists view a situation with hope, optimistically, for example, when a last-minute change in a schedule occurs, rather than being upset, this is seen as an opportunity to gain extra time.
The pessimist, (a glass half empty), sees there is water missing from what could otherwise be a full glass. They focus on the downside, see barriers and are stymied by obstacles. When they expect negative results, they fail to do the things that could have reduced or prevented those outcomes.
Whether an optimist or pessimist we all experience a range of emotions, both good and bad. And we all face challenges but it's how we respond to them that makes the difference. Every situation presents the opportunity to view it in a different light. Do you see only lemons or the opportunity to make them into lemonade!
The ATO is warning Business that pay contractors to provide certain services to lodge their taxable payments report (TPAR) for 2023.
The TPAR is used to report the payments made during the financial year to subcontractors or contractors. It is due on 28 August each year.
Be aware, from 22 March 2024, the ATO will apply penalties to those Businesses that haven’t lodged their TPAR from 2023 or previous years or have received three reminder letters about overdue TPAR.
If this is you, act now to avoid paying penalties.
Other – Outstanding Debts
From January 2024, the ATO has an external debt collection agency actioning tax cases they have referred.
This will apply to Taxpayers who haven’t responded to previous ATO contacts attempts or referral warning letters and are not engaged in debt repayment.
Don’t wait, contact the ATO or speak with our team at Blackburn Accounting asap.
Unsure of your responsibilities or what to do?
Need help!
Contact Blackburn Accounting we understand taxation matters,
or contact the ATO directly or check their website for further information.
Read the story! You decide!
The Big Mac Index so described by the Economist has seen the price of McDonalds burgers more than tripled in the 40 years of reporting. And they are still in the business of selling burgers to the masses!
What is this index? The Big Mac Index published since 1986 measures the cost of a Big Mac in different countries and indicates the difference in purchasing power parity between them.
How did McDonalds do it!
McDonalds generic competitive and growth strategies are designed to maximize efficiency, minimize costs and ensure profitability. Its pricing strategy includes price bundling along with psychological pricing that encourages customers to buy more products. Its a formulae for success as profits indicate.
A different approach is used by another mega US retailer. Their strategy aims to keep prices steady following a business model, described by the company’s finance boss as ‘arrogantly simple’, to hook shoppers by offering high-quality products at the lowest prices.’ The company attributes its enduring success to this approach.
What’s your Business model? What Strategies do you use to be competitive!
During this period of inflationary pressures and price increases running a successful Business is challenging for most, whatever your industry.
You may be one of them, a small Business owner, faced with the rising costs of doing business. Increased costs for supplies, commodities, labour and energy. How do you tackle setting price points that keep customers happy while still maintaining reasonable profit margins. It's push - pull economics!
For example, a recent news headline ‘price hike on the menu for Aussie pub classic’ suggests possible further price increases to menu favourites Burgers, nuggets and chicken fillets. This follows as a major poultry producer warning of higher production costs that will need to be recovered.
Similar sentiments expressed by a local hairdresser, saying he was forced to absorb rising costs to avoid passing them onto his customers and possibly losing them as price can be the difference between someone coming to his salon or going somewhere else. He cited increased costs of electricity, rent, products and superannuation, and is the hardest time we've ever known at running a business.
Are there any answers, solutions!
Yes, consider these Strategies.
Look at margins: Most retailers boost profits by marking up prices. Short term cost impacts can be managed thru margin initiatives, but these need careful planning to avoid losing customers. Engaging with your customers is critical during these times
What does it take!
Is there a secret recipe?
No secret but there is a recipe. It's a mix, by combining the ingredients of experiences, wisdom, little gems, mistakes and lessons learned that make successful relationships in marriage, Business or both!
A secret recipe! Add these 8 Ingredients.
- Have a Vision, Belief and Goals. Share your dream with loved ones and your associates to bring it to fruition, and make it a reality! Be an entrepreneur of your ideas, add passion, commitment, creativity and innovation. Think Blue Sky and dream Utopia!
- Develop your Pitch. To get buy-in and attract partners you need to promote, sell and clearly articulate your dream. Keep your message simple, avoid jargon, frills and whistles!
- Build relationships on strong foundations: Develop trust and build bridges and bonds with partners by finding common ground and mutual interests. Together, develop a roadmap, a guide to know where you, your Business, and your partner are going, how and what it takes to get there.
70 years the history:
In 1970 interest rates started at 5.88%, moved up to around 7%, (with a 30year mortgage rate 1971, 7.3%). Then in 1974 jumped to 10.38% for the first time in Australian history. This rapid inflation was due to oil shortages in 1973 & 1979. Rates remained around that until 1980 while inflation rose to 18%.
In the 1980’s the Reserve Bank increased official rates to nearly 20% to fight the asset price inflation prevailing at that time. The record high rate of 17.5% was set in January 1990. Australia slipped into recession that lasted until late 1991. According to the Treasurer of the time, ‘this is a recession that Australia had to have’ – Treasurer Paul Keating, November 1990.
A series of events created this situation.
- The International Stock market slump of October 1987 saw markets crash around the world. It started with interest rates rises in Japan and Germany, that pressured US rates to jump creating a huge selloff of US shares. Global share prices fell around an average 25%, but Australia slumped to a 40% decline. Of the OECD economies 17 of 18 experienced a recession in the early 1990’s.
- In Australia the Labor Party came into power in 1983. Under the Hawke-Keating government it shifted the Labour Party from its traditional allegiance to economic protectionism, and moved to deregulate Australia’s financial industry. The role of trade unions was also restructured and the rest is history!
- On reflection, speaking in 2006, Ian Macfarlane, former Reserve Bank Governor, said ‘The recession of 1990-91 was dominated by financial failure. In most cases, it was the fall in asset prices that meant that loans could not be repaid, thus transferring the distress to financial institutions.
Mortgage rates remained high until the end of 1990’s, when they levelled off to 6.5%.
Since the early 2000’s rates remained in the 4.5% to 8% range.
Since 2009 we have seen modest inflation and record low interest rates. The record low of 0.10% in November 2020. A situation that gave consumers greater spending power that for some has become a way of life.It comes as no surprise recent inflationary pressures, cost of living increases has dramatically impacted this cohort, particularly mortgagees. .
And here we are today!
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