Rinehart and Murdoch warnings ring the bell

June 2016

Small business must position itself for tougher times following warnings from two successful business people.

Gina Rinehart has warned Australia cannot afford a large government as our economy is too small for it. She indicated that 4,000 approvals were needed for Roy Hill and noted that mining employs 225,000 people directly. Small business thrives off this.

The International Monetary Fund (IMF) has calculated our biggest industry is red tape.

An incoming government should remove all state government who recently didn’t accept the offer to raise its own funds, WA excepted.

In contrast, Rupert Murdoch has tweeted that the country is almost ungovernable with any Senate majority impossible for either side to execute. Bilateral agreement to change urgent if unlikely.

Put simply, Rinehart wants the government slashed and Murdoch wants voting for the two major parties. The winning party should slash government at all levels and look to India were Modi has been successful in this revitalising the Indian economy.

Small business should be looking at its business model, reducing cost and looking for any opportunities that might present itself, as well as take on new products and services to diversify itself.

Terry Murphy CPA BBus DFP, Director of TaxAssist Accountants