Parliament forms taskforce to boost financial know-how for Australian small firms
A new parliamentary taskforce was created to improve financial literacy among small business owners after data showed many cannot determine if they are profitable.
Data from Xero reveals that more than one-third of small enterprises in Australia do not know whether they made a profit in the previous month, a gap that hampers wage payments and hiring. To tackle this, a parliamentary taskforce was convened, bringing together stakeholders from the small-business sector, finance, education and government. The group met with Assistant Treasurer Daniel Mulino and Small Business Minister Anne Aly at Parliament House to discuss strategies for equipping owners with financial skills.
Speakers such as Angad Soin of Xero and Skye Cappuccio of the Council of Small Business Organisations warned that poor financial insight can stall growth and increase closure rates, which stand at about 12 % after three years. Advocates like Verity Hare noted the mental-health strain caused by cash-flow uncertainty. The taskforce plans workshops and aims to embed basic finance education into entry-level training and secondary schooling, hoping to level the playing field for entrepreneurs like Newcastle-based Storm Menzies.
Why it matters
Improving financial literacy helps small firms stay viable, pay wages and sustain the wider economy.
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