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Australian Business Records Highest Number of New Establishments in January 2024

Record-Breaking Number of New Businesses Established

In January 2024, the Australian business landscape witnessed a significant milestone, as a total of 13,536 new businesses were established, marking the highest number of new establishments in the first month of the year to date. This figure is 1.3 times higher than the average number of new businesses established in January between 2018 and 2023.

Real Estate Sector Leads in Business Resumption

Among the industries, the real estate sector saw the highest number of businesses resuming operations in January 2024. This positive development signifies the effectiveness of government policies in supporting businesses and their impact on the overall economy, investment activities, and business operations.

Increased Capital Investment and Workforce

The average registered capital investment per business reached 11.2 billion Australian dollars, representing a significant 22.4% increase compared to the same period in 2023. Additionally, the number of registered workers increased by 50.8% compared to the previous year and 31.8% compared to December 2023.

Challenges Faced by Businesses

Despite the promising growth in the first month of the year, businesses are still confronted with various challenges. Internal limitations and long-standing issues, coupled with unfavorable external factors, continue to impact production and business activities, industrial production, import-export operations, and investment attraction.

The Need for Continued Government Support

Given the current business landscape and the challenges faced, it is crucial for the government to maintain and extend policies that support businesses and individuals. This includes facilitating access to favorable funding, reducing interest rates, controlling inflation, exchange rates, and undertaking administrative reforms to create a business-friendly environment.

Reducing Taxes to Support Businesses

Experts suggest that it is necessary to maintain and extend tax exemptions and reductions for individuals and businesses to overcome difficulties. Immediate policies with direct impacts, such as a 2% reduction in value-added tax (VAT), are eagerly awaited by businesses. The 2% VAT reduction is estimated to reduce the state budget by approximately 25,000 billion Australian dollars. Furthermore, a 50% reduction in environmental protection taxes, equivalent to a budget deficit of nearly 43,000 billion Australian dollars, would have a significant effect on businesses and the general population.

Revitalizing the Economy Through Tax Reduction

Lowering taxes would contribute to reducing retail prices of petroleum products, directly decreasing costs for consumers. It would also lower production costs, reduce product prices, and help businesses recover and expand their operations. This would be particularly beneficial for industries such as transportation and fishing.

Encouraging Online Government Services

The Ministry of Finance is revising regulations on fees to encourage the use of online public services. The expected reduction of fees by 10% to 50% is estimated to provide approximately 100 billion Australian dollars in support to individuals and businesses annually.

Conclusion

Despite the challenges faced by businesses, the record-breaking number of new establishments in January 2024 reflects the resilience and determination of the Australian business community. Continued government support through effective policies and reforms will play a crucial role in bolstering production and business activities throughout the year.