Business confidence and profitability bounced back in October, as NSW and Victoria reopened and pre-pandemic operations recommenced. 

The majority expect to return to pre-COVID profitability levels by November 2022, according to an HSBC survey of over 7,300 global businesses, including 527 Australian companies.

Looking ahead to future risks, a resurgence of COVID-19, supply chain disruption and a decrease in consumer demand ranked as the top three threats to business growth.

The HSBC Navigator survey found 65% of Australian businesses are optimistic they can generate growth over the next 12 months, in line with international peers.

It similarly found 49% of businesses expect to increase revenue 10% or more over the next year.

The vast majority — 89% — rank the introduction of ‘new products and services’ as the main driver of their anticipated growth. 

Steve Hughes, head of commercial banking for HSBC in Australia, said business optimism was driven by the country reopening its international borders. 

“As our borders reopen, we anticipate that local companies will benefit as workforces and supply chains reconnect with international markets” Hughes said.

Despite overwhelming optimism, the Australian organisations surveyed cited several factors as cause for concern outside of a resurgence of COVID-19. 

Businesses said supply chain disruptions and decreased consumer spending represented their core concerns, at 26% and 25% of respondents respectively.

Since the start of the pandemic, supply chain delays have slowly escalated, driven by a perfect storm of understaffed ports, skyrocketing container prices and an explosion in demand driven by consumers. 

In early November, a report from the ACCC outlining the impact to Australian businesses of supply chain disruptions said costs now risked being passed on to consumers.

NAB’s October Business Survey similarly showed a build up of price pressures.

It reported that elevated goods demand alongside supply chain disruptions and border restrictions had pushed inflation to the highest level in a decade.

While product prices continue to track at a high rate, retail price growth eased considerably, NAB said, projecting that price pressures could “persist over coming months before goods demand and the labour market normalise”. 

In response to ongoing supply chain risks, organisations said they were investing in new technology and adopting sustainable practices to protect against future challenges. 

Survey respondents also expressed a desire to increase international trade to mitigate supply chain issues, with 43% tipping increased trade with North America as a desirable new trading partner. 

Hughes said the responses from Australian companies also indicated a growing focus on sustainability.

Moving into 2022, Australian firms were looking to better integrate ESG factors into their operations and those of their partners. 

“The survey supports what we are hearing from our clients — that sustainability is a key focus across the Australian market,” Hughes said.

“It is clear that one key area being prioritised to help drive this change is the sustainability credentials of their supply chains.” 

Overall, however, business confidence jumped to above average levels in October, as measured by the NAB business confidence index, with retail, business, finance and property, and personal and recreation all tracking large confidence improvements.

Alan Oster, chief economist at NAB group, said the results reflected the return of business conditions above their long-run average.

“These results support our expectation of a strong rebound in activity as lockdowns are lifted in the final months of 2021,” Oster said. 

Source: BusinessInsider

The post Businesses expect to return to pre-COVID profitability levels by the end of 2022 – but supply chain chaos remains a concern appeared first on Mark Accountants.

When must you apply for your Director ID?

How do I get my Director ID?

Unfortunately even your registered Tax Agent is not able to apply for your Director ID on your behalf. To obtain your Director ID you will need to complete the identification requirements through your myGovID. A step by step guide on obtaining your Director ID can be found via this link.

Once I have my Director ID, what should I do?

Once you have completed your Director ID application and you have been issued with a Director ID, please provide your registered Tax Agent with your Director ID. If this is Mark Accountants please do so by emailing it to us at admin@markaccountants.com.au If you have any questions about this new requirement, please reach out to us accordingly.

The post Important Message for all Company Directors appeared first on Mark Accountants.

Step 1 – Set up myGovID

You will need a myGovID with a Standard or Strong identity strength to apply for your director ID online. If you live outside Australia and can’t get a myGovID with a Standard or Strong identity strength, you will need to apply with a paper form and provide certified copies of your identity documents. If you live in Australia and:

• don’t have a myGovID, you can find information on how to download the app at How to set up myGovID
• already have a myGovID, you can apply for your director ID now.

myGovID is different from myGov

• myGovID is an app. You download the myGovID app to your smart device. It lets you prove who you are and log in to a range of government online services, including myGov.
• myGov is an account. Your myGov account lets you link to and access online services provided by the Australian Taxation Office (ATO), Centrelink, Medicare and more.

Step 2 – Gather your documents

You will need to have some information the ATO knows about you when you apply for your director ID:

• your tax file number (TFN)
• your residential address as held by the ATO
• information from two documents to verify your identity.

Examples of the documents you can use to verify your identity include:

• bank account details
• an ATO notice of assessment
• super account details
• a dividend statement
• a Centrelink payment summary
• a PAYG payment summary (this is different to your income statement, and/or your PAYG instalment activity statement).

Step 3 – Complete your application

Once you have a myGovID with a Standard or Strong identity strength, and information to verify your identity, you can log in and apply for your director ID. The application process should take less than 5 minutes.

Apply now with myGovID

Source: Australian Business Registry Services

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