If they want to create and preserve jobs, both Kevin Rudd/Wayne Swan and Malcolm Turnbull/Julie Bishop are getting it wrong. Indeed one could argue that Wayne Swan is an Australian job destroyer. These are major statements, but I can back them up. Without going into too much detail, small and medium business is Australia’s largest employer and/or contractor of labour. And right now, thanks to government ignorance supported by the opposition, our major employer is being brutally mauled. And state governments are also helping in the job destruction process, again because they are out of touch with what is happening.
Yesterday a medium sized business operator I know, who carries a relatively small overdraft and employs 55 people went to see his bank because he was being charged 10 per cent for his overdraft including fees, charges and add-ons. When he threatened to go elsewhere he was politely invited to leave. There were no choices. He had to stay. That story is being repeated around the country. Sometimes small businesses have to pay much more than 10 per cent, including fees and charges. Other times rates are lower. There have been some business rate reductions but the rates are always far higher than home loans and often the money is hard to get – especially if the business borrower wants more money or business is tough.