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In the November 2023 Tax Insights survey, we asked Australian businesses about their anticipated actions and priorities for the next six months.
The survey results shed light on the strategic outlook for the Australian business community in response to the prevailing economic conditions.
The survey question delved into the intersection of taxation and business decisions, aiming to capture the diverse approaches companies plan to take. Here are the compelling findings:
Despite the unemployment rate edging slightly higher to 3.7%, the addition of an impressive 55,000 jobs to the economy last October set the stage for a nuanced set of responses from businesses. Participants were asked to project their plans for the next six months based on four key options:
- Announce some redundancies: 13% of respondents indicated an intention to streamline their workforce, possibly in response to changing market dynamics, financial considerations or internal restructuring initiatives.
- Hire more staff: Reflecting optimism and growth ambitions, 25.9% of businesses expressed their intent to expand their workforce. This positive stance may be driven by increased demand, business expansion or the pursuit of new opportunities.
- Align with outsourcing partners: A significant 38.9% acknowledged the strategic importance of outsourcing partnerships, recognising the potential benefits in terms of cost efficiency, access to specialised skills and adaptability to evolving market conditions.
- No change: Despite the economic flux, a noteworthy 22.2% of businesses indicated their plan to maintain the current status quo. This decision could stem from a variety of factors, such as stability in market conditions, confidence in the existing workforce structure, or a cautious approach amid economic uncertainties.
These findings from the Tax Insights November survey present a comprehensive snapshot of the strategies that businesses are contemplating to navigate the complex interplay of economic factors and tax considerations.
The contrast between job additions and a rising jobless rate highlights the complex decisions organisations must make as they strive to find the balance between fiscal responsibility and strategic growth
