While this article series was written with the Australian economy in mind, the ideas are relevant for anybody, anywhere in the world.
The Situation We Find Ourselves In
The Australian economy is struggling to get back on its feet after the hit it has taken from the Global Financial Crisis (GFC).
Rising unemployment and ridiculous living costs mean that for many of us we need to find more money.
If you are still employed, you may not be making enough to maintain your usual way of life and mounting debts may be causing you stress that you can simply do without.
This is a three part series about the current financial crisis we find ourselves in, how home-based online businesses can assist the Government get ‘out of the poo’ (and what it needs to do now) and how ordinary Australians can use the power of the internet to play our part and help out.
Part 1 covers:
- How Online Business Can Help Get Us Out of the Poo
- The True State of the Australian Economy
- Media Reports of ‘Doom and Gloom’
- Reasons Why More Australians Are Considering Working from Home
How Online Business Can Help Get Us Out of the Poo
The Government needs to recognise the importance of Australia’s home-based online workforce as potential saviours in these harsh economic times.
If everyone with some spare time, basic computer literacy and access to the internet put a little bit of effort into learning how easy it is to make some extra money online – then we would all be in better shape.
I’m not a financial advisor or tax agent, but from what I read on the Australian Tax Office website, unless you are conducting a business you generally don’t have to pay income tax on the money you make.
In other words, while you are learning and not expecting to make any money on a regular basis, it is still considered to be a hobby, all the money you make is yours. If you are successful and start making good money online, then you can start claiming business expenses and deductions – so you win either way!
The True State of the Australian Economy
The impact of the GFC on total government receipts coupled with unprecedented levels of government spending on stimulus initiatives means that the Government is facing some of its biggest financial challenges in modern history.
During the Government’s 09/10 Budget Speech, Treasurer Wayne Swan highlighted the extent of the problem:
“This Budget is forged in the fire of the most challenging global economic conditions since the Great Depression…
Its focus is on an unprecedented push for jobs and productivity, built on the roads, rail, ports and broadband that are the building blocks for sustainable growth…
Since last year’s Budget, taxation receipts have been revised down by around $210 billion over the forward estimates…
It is the biggest downward revision in our history. Roughly equivalent to the entire Commonwealth spend on health and hospitals over the forward estimates.”
The Government identified job creation and reducing the rate of unemployment as one of its main priorities to address financial challenges.
Media Reports of ‘Doom and Gloom’
For the past 12 months, the media has continued its barrage of doom and gloom stories. In recent times, the media has published articles on the following themes:
- Businesses and most recently government departments are shrinking their workforce and aiming to ‘do more with less’.
- Business confidence is low and employment figures are unlikely to improve in the immediate future.
- Today’s cost of living is up to ten times more than it was in the 1980s.
- Australians, many of which are caught up in the dream of home ownership or struggling to find affordable rental properties, are struggling to find suitable and income earning opportunities.
- The rising cost of education has seen a recent decline in tertiary course enrolments, with the University of NSW cutting courses in Science and Nutrition courses. This will result in individuals having less training and qualifications to remain competitive. At the same time, there are many highly qualified individuals with valuable work experience saturating the job-market.
- Competition for employment is, and will continue to be, intense with the media predicting that 2011 will see the highest levels of unemployment since World War I.
Reasons Why More Australians Are Considering Working from Home
The rising cost of going to work
- It is rapidly becoming too expensive to travel to an employer’s registered place of business.
Travelling costs
- Media reports highlight the ever-rising costs of fuel, road and bridge tolls, public-transport fares, private vehicle maintenance and car parking, claiming that some motorists in Sydney leave for work as early as 5am, despite only working 9am to 5pm. This has a negative impact on work-life balance.
A person may have the time to work but may not be able to afford it
- Families often weigh up the costs of staying at home and not working, paying for child care costs or working shorter hours. It is often difficult to find long-term shorter employment that supports shorter hours of work, e.g. four or five hours a day dependant on travelling time between time between the place of child care and the workplace. Consideration also needs to be given to transport and parking costs. An entire wage may be needed to cover the costs of working shorter hours. This places additional pressure on other income earners in the household to cover other costs of living. For many families, especially sole-parent families, this may lead to the absolute reliance on Family Tax Benefit and other government payments.
Skills shortages and the highly-qualified unemployed
- With fewer full-time jobs available, there has been a rise in part-time, casual and other irregular forms of paid work and it is likely that this trend will continue.
Part 2 of this series covers:
- Government Job Creation Initiatives and Why More Needs to Be Done
- Existing Government Support for Online Business
- The Need for Government to take Action Now and Recognise the Importance of Home-Based Online Businesses
