looking ahead: for the future · 2 looking ahead: preparing small business for the future. the...

Looking ahead: Preparing small business for the futureBy Dr Richard Tooth & DR Nicholas Gruen, A Lateral Economics study commissioned by the Office of the NSW Small Business Commissioner, December 2014

Expect the best, plan for the worst, and prepare to be surprised. Denis Waitley

IntroductionMy interest is in the future because I am going to spend the rest of my life there – C.F. Kettering

What does the future hold for your business?

This paper provides you, a small business owner in NSW, with insights into changes to look out for over the next 10 years and how they might affect your business.

• Makingpredictionsisdifficult,howeverforecastingcanstillbevaluable

• Therearesomecleartrendsanddevelopments,and

• Anunderstandingofrisksoropportunitiescanhelpyou prepare.

Key points

Message from the Minister for Small BusinessAs a small business owner myself, I understand the demands of running a business. The most difficult task is taking the time to step back and think strategically about how the events going on around you may potentially affect your business in the future. The next step is to then consider how you could better prepare your business for these changes. With some additional investment of time, you as a small business owner, may identify many of the risks and opportunities ahead.

ThisreportLooking Ahead: Preparing Small Business for the Futureconsiderssomeofthepotentialopportunitiesandchallengesthatsmallbusinessesshouldconsideroverthenextdecade.Thereportprovides,throughexamples,anunderstandingofhowanexaminationoffutureissuesmaybeusefulinassistingsmallbusinessesprepareforchange.Incircumstanceswherethereareuncertainties,consideringpossibleoptionswillhelpsmallbusinessespreparefortheinevitablesurprises.

AsMinisterforSmallBusinessIamcommittedtoensuringthattheNSWGovernmentgivessmallbusinessesthesupportthattheyneed.ThisreportisjustoneofmanytoolsavailabletoassistsmallbusinessesinNSWprosperandtakeadvantageofthe opportunitiesahead.

The Hon. John Barilaro MP

What changes might affect your business?Thispaperconsiderspossiblechangesaccordingtothesethemes:

1. Accesstofinanceandthemacroeconomy

2. Demographicchange

3. Technology

4. Engagingcustomersandotherstakeholders

5. Thebuiltenvironment

6. Thepolicyenvironment

7. Utilitycosts

Makingpredictionsisdifficultbutalooktothefuturecanbeveryvaluable.Insomethemesdiscussedinthispaper,therearetrends(e.g.theageingpopulation)andchanges(e.g.plannedinfrastructure)thatcanbepredictedwithsomeconfidence.Forotherthemes,thefutureishighlyuncertain.Regardlessofthelevelofcertainty,theprocessofforecastingisakeystepinidentifyingrisksandopportunitiesandthemanagementofrisks.

Identificationofpotentialchangescanhelpyoubemorealerttochangesastheymaterialise,tounderstandtheirimplications,andtorespond.Betterunderstandingandmanagingrisksalsohelpsreducethestressonyouandyouremployees.

2 Looking ahead: Preparing small business for the future

The implications of any potential change will differ from business to business. To assess implications for your business, there are a number of questions you may consider. Naturally these would include what is the likelihood of change and what is the likely pace of change. There are also questions that are more particular to your business.

First,howwouldyourbusinessrespondtoachangeandhowquicklycouldyouadapt?Willthechangerequireamodificationtobusinesspractices?Evensmallchangescanhavesignificantconsequences,whichuponinspectioncangenerallybeeasily identified.

Willthechangeaffectallyourcompetitorsinamarket?A changethataffectsallcompetitorsequallymayresultinoffsettingchangesincompetitionandprices.Achangethatmoresignificantlyaffectsjustyourbusinesswillbeofgreaterconsequence.

Thenatureofchangeisalsoimportant.Somechanges,suchasachangeinthecostofakeyinput,maybequicklyabsorbedbythemarketandpassedoninachangeinpricetoconsumers.Modificationtobusinesspracticesmaybeabsorbedmoreslowlyandprovideadvantagestothosewhoadaptearlier.

Isthemarketgrowing?Changesthatoccurinagrowingmarketwillgenerallybeoflessersignificance.Forexample,anegativeshockmaysimplyslowtherateofnewcompetitioninagrowingmarketbutcausesomeexistingbusinessestoexitinasteadyordecliningmarket.

How will changes in costs affect your business?Considertheimpactofalargechangeinthecostofakeyinputsuchasfuelorlabour.Theimplicationstoyoumightbesmallifthechangeaffectsallcompetitorsequally,howeveryoumightbemoreorlessdependentontheseinputsthanothers.Differencesbetweenhowyouandyourcompetitorsoperateareakeysourceofriskandopportunity.

Itisimportanttorecognisethat,despiteyourbestefforts,therewillbeeventsthatyousimplydonotexpect,orthatcouldnothavebeenforeseen.Sucheventsareoftendescribedasblackswans(seeBox1:Blackswans).Whileyoucannotpredictalleventualities,youcanconsiderhowtoprepareyourbusinesstoberesilienttosuddenshocks.

• Whatappearstobeasignificantchangemaybequite benign

• Foranychange,willthechange:–involveachangeinbusinesspractice?–providetimetoadapt?–affecttheentireindustry?

• Ensureyourbusinessisresilient.Therewillbechangeswhichyouwillnotexpect.

Key points

Box 1: Black SwansBeforeblackswanswerediscoveredinWesternAustralia,thecommonlyheldviewwasthatallswanswerewhite.Itwasn’tso,butnooneoutsideofAustraliacouldhave known.

Blackswansareunexpectedevents(outsidetherealmofregularexpectations)thathavesignificantimpacts.1TheseincludeeventssuchastheSeptember11,2001attacks,thedissolutionoftheSovietUnion,the2011tsunamiinJapanandtherecentChristchurchearthquakes.

Implications and considerations

looking ahead: preparing small business for the future 3

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*Confidence intervals reflect RBA forecast errors since 1993Source: ABS; RBA

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1. Access to finance and the macro economyWall Street indices predicted nine out of the last five recessions! – Nobel Laureate Paul A. Samuelson, 19 Sep, 1966.

Changes in the macro economy can have broad-ranging impacts on small business, affecting the availability and cost of finance, the cost of other inputs, product demand, and, particularly for those exposed to fluctuations in the exchange rate, the price of goods sold.

Anumberofbanksandotherpartiesprovideregularforecastsofthemacroeconomy.TheseincludethequarterlyeconomicoutlookbytheReserveBankofAustralia(RBA),themostrecentofwhich(fromNovember2014)issummarisedinBox2:TheRBA’sNovember2014forecastbelow.Thetwo-yearforecastoftheRBAandmostbanksappearstobereasonablyconsistentinpredictingsteadyeconomicgrowth.

Don’tlettheconsistencyofeconomicforecastsgiveyouafalsesenseofsecurity.Likeothers,economicpunditsandprophetstendtogroupthink.2

Figure 1: Economic forecasting4

Box 2: The RBA’s November 2014 forecastEachquarter,theRBAaspartofitsStatementofMonetaryPolicyreleasesaneconomicoutlookcontaininginsightsandforecasts(foratwo-yearperiod)fortheAustralianeconomy.ForecastsintheNovember2014reportinclude:

• theexchangerateistoremainsteadyinthenearfuture

• economicgrowth3willbeslightlybelowtrendfor2014/15butpickupover2015/16,and

• inflationwillbesteadyataround2–3.25%.

However,thereportalsoidentifiessourcesofuncertaintyincluding:

• thespeedandtimingoftherecoveryinnon-miningbusinessinvestment

• howlowincomegrowthandwealtheffectsfromthehousingmarketmighttranslateintoconsumption

• theChinesehousingmarket,and

• thepathoftheexchangerate.

Source: RBA(2014).

Box 3: The uncertainty in forecastingThefigurebelowshowsthelikelyrangeoftheRBA’seconomicgrowthforecastbasedonpastperformance.Theextentoftherangehighlightstheneedforbusinessestobepreparedforrapidandunanticipatedchangesintheeconomicenvironment.

Source: RBA(2014,Graph6.3).


Asuddenchangeineconomicconditionscanhaveasignificantimpactonasmallbusiness.Manysmallbusinesseswillhaveexperiencedthechallengesofatighteningofcreditthatoccurredduringtherecentglobalfinancialcrisis(GFC)between2007and 2009.

Figure2:Smallbusinesssalesgrowth–NSWshowshowrapidlythingscanchange.ThissummarisesresultsfromthequarterlySensis®BusinessIndexsurvey5onsalesgrowthexpectationsandactualexperience.Thefigureshowsthenetbalance–thedifferenceintheproportionofbusinessesreportingpositiveandnegativegrowth.Asshown,theexpectationsofpositivesalesgrowthplummetedinlate2007andrecoveredstronglyinearly2009.Notealsothatexpectationsarealmostalwaysbetterthanactualcircumstances,suggestingsystematicoptimismbiaswithinsmall business.

Duringthisperiod,thecostandavailabilityoffinancechangedquickly.Figure3:Averagelendingratestobusinessbelowtrackschangesinaveragelendingrates.Ofparticularconcernforsmallbusinessisthatduringtimesofstress,thecostofborrowingforsmallbusinesscangrowatafasterratethanthatforlargebusiness.

Further,thisunderestimatestheimpactsonsmallbusinessassomebusinessesfindthattheyarerefusedfinanceatanyratewhichcanbecatastrophicforthebusinessesconcerned.Withoutcollateral,cashflowlendingtosmallbusinessesisseenashighriskandlowrewardbybanks.Inapanic,financecansimplybecutoff,evenifyourownprofitandlossandbalancesheetslook fine.

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Figure 2: Small business sales growth – NSW

Figure 3: Average lending rates to business

Source: RBAStatisticstableF5www.rba.gov.au/statistics

Source: SensisSmallBusinessIndex.


How resilient are you?Youownasmallmanufacturingbusinesswithahealthyprofitandlossandbalancesheet,butduringasevereeconomicdownturn,demandfallsandyoubegintoreturntradinglosses.Youshouldbeabletorideoutthestormbutsomecustomersdefault,leavingyouwithaneedforfinancetomeetsomefixedcosts.Youseekashort-termloantobridgethegapuntilyoucangetcostsundercontrolbutbanklendingtosmallbusinesshasdriedup.Youneedfinancefastanditisnowheretobefound.

Identifyingandconsideringsuchscenarioscanhelpyouprepareandbemoreresilientto shocks.

• Theeconomicenvironmentcanchangesuddenly.Thereisgreatuncertaintywitheconomicforecastsandadegreeof‘groupthink’inmostforecasts

• Inlightoftheuncertainty,businessownersshouldconsiderhowresilienttheirbusinessistolargechangesinkeyeconomicvariablessuchas:

–interestratesandtheavailabilityoffinance –theexchangerate,and –consumerdemand.

Key points

Source: RBAStatisticstableF11.

Howyoubestprepareforsuchscenariosdependsoncircumstancebutregardless,animportantstartingpointisawarenessofthepotentialimplicationsofasuddenchangeintheeconomicenvironmentandtheneedforresiliencetobadshocks.

Changesinexchangeratesarealsoimportant.Theycansignificantlyaffectpricesreceivedbyexporters,thepriceofimportcompetitiondomestically,thecostofkeyinputsanddemandforservicessuchastourismoreducation.6

TheAustraliandollarhasfallenagainsttheUSdollarbyaround9%sinceJune2014,alevelofvolatilitythatismildincomparisonwiththechangesbroughtonbytheGFC(seeFigure4:AustraliandollarinUSdollarsbelow).In2008,thedollarfellinvaluebyalmost30%inthreemonthsbeforeclimbingrapidlyagain.

Figure 4: Australian dollar in US dollars

1. Access to finance and the macro economy

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2. Demographic changeIn contrast to macro-economic changes, demographic changes (i.e. changes in the population and its make up) tend to be both relatively predictable and gradual. The Australian Bureau of Statistics (ABS) forecast the NSW population will grow over the 10 years to 2024 by 1.21% to 1.29% per annum.

Althoughdemographicchangeisslow,becauseitislargelypredictable,itshouldbeanimportantconsiderationinlong-termplanning.7

AnumberofcleardemographicchangesareoccurringwithinNSW(andAustralia).Asiscommonlyrecognised,thepopulationisageing(seeFigure5:Theageingpopulationbelow).By2024,theportionofthepopulationaged65+isforecasttorisefrom19%to24%intheareaoutsideofgreaterSydney,achangelargelybalancedbyafallintheportionofthepopulationthatisofworkingage.

Figure 5: The ageing population

Source: ABS3222.0PopulationProjections,Australia,2012(base)to2101,SeriesB.

Thereisalsoacontinuedshifttowardsmetropolitanliving.WhilegrowthisexpectedinGreaterSydneyandNSW,theexpectedrateofgrowthingreaterSydneyis2½timesgreaterthantherestofNSW.8PopulationforecastsforlocalareasaredescribedintheNSWGovernment’sRegionalStrategies.9

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Spendinghabitschangewithage.Retireestendtospendlessandspendondifferentthings.Obviously,retiredpeoplespendlessonwork-relatedcostssuchaspreparedmeals,workclothingandcommuting.Theirspendinghabitschangeinotherways(seeTable1:Spendinghabitsoftheolderpopulation).

For example,retireesspendproportionately:10

• lessonhomemaintenancecontractors,suchashousepainting,andassociatedsupplies

• lessongardening,housekeepingandcleaningservices

• moreonleisureincludingdomesticholidays,daytrips,cultureandrecreationlessons,and

• moreonhealthservicesincludinghomehelp.

Table 1: Spending habits of the older population

% of expenditure of NSW households by age

Expenditurecategory* 65+ 55-64 All

Food&beverages 19.0 17.4 16.8

Recreation 14.9 14.2 12.9

Misc.goodsandservices 12.1 8.8 9.3

Transport 12.0 16.5 15.6

Currenthousingcosts 11.2 14.1 18.8

Medicalcareandhealth 8.2 6.6 5.1

Householdservices 7.0 5.2 5.6

Householdfurnishings&equipment 4.2 5.0 4.2

Domesticfuel&power 3.4 2.8 2.5

Clothing&footwear 3.0 3.6 3.6

Other 2.2 2.7 2.6

Totalgoodsandservices 100 100 100

Source: ABS(2011).Note:*someabbreviationsapplied.

Demographicchangesalsohaveimplicationsfortheworkforceandtheavailabilityoflabour.Theageingofthepopulationwillleadtoanincreaseinthedependencyratio(theratioofpeoplenotofworkingagetothoseofworkingage)11potentiallyleadingtolabourshortagestressesinsomesectors.However,afurtherimplicationisthattherewilllikelybeanincreaseinthenumberofpeopleaged65andoveroptingtoworkasameansofsupportingtheirretirementincomeand/orstayingactive.The changesmaybemostsignificantinregionalareaswherethegreatershiftinthedependencyratioisexpectedtooccur.Businessesthatplanforandadapttosuchchangeshaveapotentialadvantageoverthosethatdonot.


Could you cater to the ageing population?Theageingpopulationcreatesopportunitiesforsmallbusinessestoservethisincreasingdemographicgroup.Thesemightinclude:

• professionalservicesprovidingadvicetopeoplewhoare retiring

• buildingservicestoadapthomesforolderpeople

• homecareservicesfortheagedsector

• leisureservices,and

• healthservices.

Source:AdaptedfromNiesche(2012).

Smallbusinessesshouldalsobeawareofotherdemographicchangeswhenplanning.Forexample,thechangeintheculturalmix,dueinlargeparttoimmigration,maybeanimportantfactorforbusinessplanning.Ignoringapotentiallylargecustomergroupissomethingnobusinesswantstodoandsobusinessesshouldconsiderhowtheymeettheneedsofachangingmixofcultures.

2. demographic change

Box 4: Cultural changeThemostrecentcensusdataindicatesthat,forthefiveyearstoSeptember2013,permanentsettlerimmigrationintoNSWaccountedfor30%oftotalimmigrationintoAustralia.12ThefivepredominantnationsoforiginwereChina,India,theUnitedKingdomandthePhilippinesrespectively.OfthetoptwentycountriesoforiginonlythreewereWesternCountries(UK,USandIreland)andover50%(11of20)wereeitherinEastAsiaorSouthAsia.

• Demographicchangetendstobeslow,butisrelativelypredictable

• Thepopulationisageing.ThiswillbemorepronouncedoutsideSydney

• Thechangeswillprobablychangeconsumerdemand,creatingbusinessopportunities.

Key points

3. Technology I think there is a world market for maybe five computers. – Thomas Watson, chairman of IBM, 1943.

Technology advances create opportunities and risks for businesses of all sizes. Technology advances can in a short space of time make existing products obsolete and result in new markets being created.

Theapplicationsandimplicationsoftechnologicaladvancesarenotoriouslydifficulttopredict.Onecleartrendisthattherehasbeenanincreaseintherateatwhichnewtechnologieshavebeenadopted.Giventheincreasingimprovementsincommunicationsnetworks,weexpectthistrendtocontinue.

Therearealsosomegeneraldevelopmentsthatarereasonablyclear.Intheshorttomedium-term,itappearsverylikelythattherewillbecontinuedrapidgrowthincomputingpower,continueddecreaseinthecostofcomputingdevicesandlargeincreasesintheaveragecommunicationspeedsacrossfixedlineandwirelessnetworks.

ForsmallbusinessinAustralia,therearesomeimportantchangesthatrequireelaboration.

The NBNTheNationalBroadbandNetwork(NBN)isalargeinfrastructureprojectthataimstosignificantlyincreaseinternetconnectionspeedsforbusinessesandhouseholds.Whilemostbusinessesandhouseholdstodayhavesomeformofbroadbandinternetaccess,thehighspeedsoftheNBNwillenablenewapplicationsandaddressexistingissuesforusers,particularlyforsmallbusinessesandusersinregionalareas.

TheNBNisbeingprogressivelyrolledoutacrossAustralia.AsatMay2014,around193,000premisesinAustralia(59,000premisesinNSW)hadanactiveNBNconnection(seeFigure6:NBNroll-outbelow).13

Figure 6: NBN roll-out

Source: NBNCo(2014).

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Theexperienceofbusinessesalreadyconnectedprovidessomeguideastothepotentialapplicationsandimplications.14Thekeybenefitsreportedtodateincludegreaterstaffproductivity,costreductionandgreatlyimprovedcommunications.TheNBNisexpectedtoprovidebenefitstomostindustriesandmostsignificantlyforinformationintensiveindustriessuchashealth,creativeindustriesandeducationservices.

TheNBNmayalsorepresentathreattosomesmallbusinesses.SmallbusinessesmayfindthattheNBNresultsinincreasedlevelsofcompetitionfrombusinessesinotherregionsandevenfromfirmsinternationallywhocanserviceconsumerswhoareconnectedtotheNBN.

Mobile communications, ubiquitous computing and the internet of thingsAnothersignificantdevelopmentincommunicationsistherapidgrowthofmobiledata;thatis,datatrafficthroughmobiledevices.Whilemobiledatatechnologyhasbeenavailableforsomeyears,thehigherspeedsthrough3Gand4Gtechnologieshasledtoarapiduptakeinrecentyears,withannualgrowthatover30%perannum.15Therateofgrowthissettoincrease,withprojectionsofafour-foldincreaseinmobiledatausagefrom2013to201716.

LiketheNBN,mobilecommunicationsisageneralpurposetechnologywithabroadrangeofapplications,manyofwhichwemayhaveyettosee.Whilethespecificapplicationsmaybedifficulttopredict,itispossibletoseeanumberoftrends emerging.

Perhapsthemostimportantapplicationsinvolvethecouplingofmobiledatacommunicationswithcomputingdevicesthatcapturedata.Acommonexampleofthistypeofapplicationisin-vehicle(telematics)devicesthatcaptureinformation(viaGPS)onvehiclelocationenablingbusinessestokeeptrackofvehiclefleetlocation.Telematicsdevicesarealsoabletocaptureinformationonspeed,accelerationandtimeofuse.

Anotherimportantexampleistheincreaseduseofradio-frequencyidentification(RFID)tagsforapplicationssuchasinventorymanagementandanimaltracking(seeBox5:UseofRFIDtagsforstocktaking).Therearemanyotheremergingtechnologiesandapplications.Forexample,Sense-T17providesrecentexamplesincludingsensorsto:

• Measuresoilmoisture,belowandabovegroundtemperature,relativehumidity,solarradiationandleafwetnessforagricultureuses.

• Measuretheheartbeatsofoysterstooptimiseoysterproduction.

• Trackfoodthroughoutasupplychain,recordingreal-timedataonfactorsvitaltofoodstability.

Thisintegrationofsmartdeviceswithwirelessandwirednetworks–commonlyreferredtothe‘internetofthings’–isafastgrowingtrendthatislikelytocontinue.Weexpectmoreandmoresmartdeviceswillbeintegratedwithphysicalobjects.

Box 5: Use of RFID tags for stocktakingRFIDtagsaresmalldevicesattachedtoobjectsenablingthemtobetrackedandidentified.Suchtagsareincommonusefortrackingeverythingfromlibrarybookstoanimals.Thecostandsizeofthetagshasfallen,enablinganincreasingrangeofapplications.Anincreasinglycommonapplicationisinstock-keepingtoenablerealtimeinventorycontrol.TheRFIDtagsarebecomingcheapenoughthattheymaysoonreplacebarcodesonexpensivegoods.RFIDhasanadvantageoverbarcodesinthatitdoesnotrequirelineofsight.Eventually,youmightbeabletotrackallstockautomaticallyinrealtimeascustomersmoveitaroundyourstoreintheirtrolleysorbaskets.

Opportunities from open access to dataAnimplicationoftherevolutionininformationtechnologyandcommunicationsistheincreasedavailabilityoflargedatasetsthatcanbeusedforpracticalapplications.Theavailabilityofdatacanprovideopportunitiesforlargeandsmallbusinessestoresearchmarkets,betterservetheircustomersanddevelopinnovativeapproachestoservicedelivery.

Governmentsarerecognisingthepotentialvalueofthedatatheycaptureandarenowfocusingonhowtheinformationtheygathercanbeusefulwhenmadeavailabletothecommunity.LateralEconomicsrecentlyestimatedthatenablingmoreopenaccesstodatawasoneofthebiggestmicro-economicreformsavailable,beingworthover$16billionperannumtotheAustralianeconomy.

TheNSWGovernmentismakingincreasingamountsofitsowndataavailableatDataNSW(data.nsw.gov.au).ToencouragetheuseofNSWdatatocreateinnovativewebandmobileapplications,theNSWGovernmentlaunchedtheapps4NSWprogram,thefirstStateGovernmentappscompetitioninAustralia.Theobjectiveoftheapps4NSWcompetitionwastocaptureinnovativeideasusingpublicsectorinformationanddatathatareusefultothepeopleofNSW.


Identifying possible mobile data applicationsThegrowthofmobiledataapplicationsislikelybuthowwillthisaffectyourbusiness?Ausefulframeworkandapproachforidentifyingpotentialapplicationsistoconsiderhowinformationisusedinyourbusiness.Forexample,youmightconsiderwhatinformationisprovidedandhowdatacommunicationsmightchangeyourbusinessintermsof:

• providingquotations

• bookingorschedulingservices

• managementofbusinessinputs,and

• customermanagement.

• Technologicalchangecanbeveryrapidanddisruptivetoindustries.Therateofadoptionofnewapplicationsappearstobeincreasing

• Somekeytechnologydevelopments:

–Roll-outoftheNBNofparticularsignificanceforsmallbusinessandregionalareas

–Growinguseofmobiledataapplicationsincombinationwithlow-costdevicesforinformationcapture

• Greateruseofcomputingcanalsocreatemanagementchallengesindealingwithissuessuchasdatamanagement,privacyandcybersecurity.

Key points

3. technologyOther developments and challengesAnimplicationofthedevelopmentsincommunicationstechnology,datacaptureandonlinetransactionsisthattherehasbeenanexplosioninthevolumeofdatathatiscaptured,communicatedandstored.Itisthoughtthataround90%ofthedataintheworldtodaywascreatedinthelasttwoyears.Theterm‘BigData’hasbeenusedtodescribethisvoluminousunstructureddata.Businessesareincreasinglyusingthisdataforarangeofpurposesincludingmarketingandcustomermanagement.TheonsetofBigDatahasimplicationsforsmallbusiness.Whileitcanprovideopportunitiesforbusinessesthatareabletoworkwiththedata,italsocreatessomethreatsandchallenges.Forexample,itmayprovideacompetitiveadvantagetolargerfirms.Cybersecurityandprivacy)arelikelytorepresentincreasinglyimportantrisksforbusinessesandsmallbusinessesshouldgiveconsiderationtomanagingsuchrisks.

Thereareanumberofemergingtechnologies(including3Dprinting,driverlesscarsandwearablecomputingsuchasGoogleGlass)thatreceivealotofmediaattention.Theimplicationsare,inouropinion,toodifficulttoassess.Nevertheless,basedonrecenttrends,wepredictthesetechnologieswillgainanincreasingamountofattentionincomingyears.


First we work for our reputation then our reputation works for us – Anon

One of the most significant developments in the last decade is how businesses engage with customers through an online presence and using tools such as social media.

In2013,18thevastmajority(95%)ofsmallbusinessesreportedbeingconnectedtotheinternet.Mostreportedhavingawebsite(64%)ortheintentiontodevelopone(anadditional9%).Smallbusinessesareincreasinglyusingtheinternettoresearchproductsandservices.Otherinternet-basedactivitiesthatareontheriseareorderplacement(76%)andpaymentforgoodsandservices(81%).

Thetake-upbysmallbusinessesismirroredbythehighuseoftheinternetbycustomers.Accordingtorecentresearch(Sensis,2013),around87%ofAustralianslookedforinformationonproductsorservicesonline.AlmostthreequartersofAustralianspurchasedgoodsonline.Themostpopularproductsincludedclothing,airlineticketsandbooks.AlmostathirdofAustralianshadpurchasedproductsfromoverseas.Ofnote,theelderlyarealsogettinginvolved;overhalfofthoseaged65+reportedthattheyhavepurchasedonline.

Theuseofanonlinepresenceformarketingande-commerceisthuswell-establishedandappearsonlytogrowingandthereforeshouldbeanincreasingfocusforsmallbusinesses.

Social mediaArelateddevelopmentistheincreasinguseofsocialmedia,connectingpeopleandenablinginformationsharing.Smallbusinesssocialmediauseisgrowingrapidly.Arecentsurvey19foundthataround36%ofsmallbusinessesinAustraliacurrentlyhaveasocialmediapresencesuchasaFacebookpage(upfrom14%in2011)withanother19%ofsmallbusinessesintendingtodosointhenextyear(seeFigure7:Socialmedia–usagetrends).TheseresultsforSMEsaresimilaracrossstatesandbetweenregionalandmetropolitanareas.

Box 6: The importance of reputationCabralandHortaçsu(2005)foundthatthefirstnegativereviewreceivedbyaneBaysellerreducedsalesgrowthby14%;froma7%positivegrowthtoa7%negativegrowth.Inacontrolledexperiment,Resnicketal.(2006)foundbuyerswouldpayawellreputedseller8%morethantheywouldpayanewseller.

4. Engaging with customers

Source: Sensis(2014)

Themostcommonbusinessusesofsocialmedia20include:

• invitingonlinecomments,ratingsandreviews

• two-waycommunicationwithclientsandcontacts,and

• offeringincentivestoconsumers.

Whatdoesthismeanforsmallbusinesses?Firstandforemost,itincreasestheimportanceofbusinessesmaintainingtheirreputationandbeingtrustworthyintheircommunication.Abusinessthatachievesastrongonlinereputationcanberewardedwithhighersalesandhigherprices.Bythesametoken,badnewstravelsfast,particularlyonsocialmedia.

Socialmediacannotonlyhelpbusinessesgrowwithoutfundingaphysicalshopfront,itcanalsomakepreviouslypoorlocationseasiertodiscover.PlatformslikeYelpandTripAdvisorhavetransformedtheeconomicsofrestaurants,notjustintensifyingcompetitionforgreatfoodandatmosphere,buthelpingsmaller,cheaperrestaurantsinoutofthewaylocationsconnectwithaclientelethatmightneverhavediscoveredthempreviously.

Figure 7: Social media – usage trends among business

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Havingbeenparticularlystronginhospitalityandpersonalservicessectors,21socialmediaisbeingincreasinglyusedinothersectorsincluding:

• retailtrade

• healthandcommunityservices,and

• communication,propertyandbusinessservices.

Astheuseofonlinereviewsandsocialmediabecomesmoreentrenched,itappearslikelythatitwillbecomeanincreasinglyimportantfactorinthemarketingofotherservicessuchastradesandprofessionalservices.

Theincreasedconnectednessandonlinepresencewilllikelyprovidegreateropportunitiesforspecialisationbyenablingorganisationsthatprovideauniqueproductorservicetoreachabroadercommunity.

Theuseofsocialmediacreatessomechallengesandrisksthatareparticularlysignificantforsmallbusiness.Sensis(2014)reportsthat,ofthosewithoutasocialmediapresence,8%ofsmallbusinesses(butonly3%ofmediumbusinesses)hadoneinthepastbuthadsubsequentlydroppedit;oftenbecauseitwastootimeconsumingortoosusceptibletotamperingandadversecomments.22Notsurprisingly,mediumandlargebusinessesupdatetheirsocialmediacontactmuchmorefrequentlythansmallbusinesses.

Receiving a negative reviewWhatwouldyoudoyouifyoureceivedaverynegativeonlinecustomerreview?Thiscanbeverydistractingforyouastheowner.Respondingtothereviewinanegativewaymaysimplymakemattersworsebydrawingmorenegativeattention.Beingawareofsuchriskscanhelpyoubebetterpreparedto respond.23

• Increasingly,smallbusinessesaregaininganonlinepresenceandusingsocialmedia

• Socialmediacreatesstrongopportunitiesforgrowthbutalsorisks

• Socialmediamanagementcanbetimeconsumingandcareisrequiredinhowyouuseittoengagewithcustomers.

Key points

5. The policy environmentThe policy (including regulatory) environment is a significant factor for most businesses and particularly small businesses. Most small businesses are directly subject to a large number of regulations. For example, the Productivity Commission24 estimates that a winery in NSW will potentially require 76 licences from Commonwealth, State and Local governments and, similarly, a residential builder will potentially require 36 licences.

Oftenbusinessesarealsoindirectlyaffectedbyregulations.Thesemayberegulationsthataffectthedemandforservices,theextentofcompetitionandotheraspectsofbusinesses.Forexample,inrecentyears,CommonwealthandStategovernmentshaveintroducedregulationtosupportenergyefficiencyprograms.

Thesignificanceofregulationandanyregulatorychangewillvary.Someregulatorychangesmayseemsurprisinglybenignwhileothersmaybesurprisinglysignificant.Forexample,whilelicencerequirements,cumulatively,canimposeasignificantburdenintermsofcostandeffortonsmallbusinesses,changestothesegenerallyoccurslowly,followingconsultationandhaveauniformimpactonthemarket.

Thefullimplicationsofachangearenotalwaysobvious.Itisimportanttoconsiderhowregulationwillchangebusinessprocesses.Forexample,betweenAugustandOctober2014,theabilityforconsumerstosignforcreditcardanddebitcardpurchasesatapointofsalewasphasedout.25Forsomebusinesses,thishadnegligibleimplications.However,considertheimpactforarestaurantwherecustomersusedtosignacreditcardslipatthetablegenerallyaddingatipfortheservice.Forsucharestaurant,thisseeminglysimplechangemayhavehadprofoundimplicationsforcustomerservice,theremunerationofstaffandthetechnologyrequired.

4. Engaging with customers


Understandingtheimplicationstobusinessprocessesisimportant.Yourindustryassociationwillgenerallybeagoodsourceoffutureregulatorychangesandtheimplications.

Oftentheindirecteffectsofregulationwillbemoresignificantastheyhavethepotentialtosubstantiallydisruptamarket.Someregulatorychangescanhavefundamentalimpactstobusinesses.Anotherusefulquestiontoconsideristheextenttowhichyourindustryisunderpinnedbyregulation.Forexample:

• Iscompetitioncurrentlylimitedbyregulation?

• Isthedemandforthegoodsandservicesyouprovideinfluencedbyregulation?Ormightitbeinthefuture?

Dealing with a sudden policy changeIn2013changeswereproposedtothefringebenefitstax(FBT).Theproposedrules(whichwerenotimplemented)wouldhaverequireddriversofsalary-sacrificedandemployer-providedvehiclestokeepdrivinglogbookstoprovetheirvehicle’spercentageofbusinessusesoastostopdriversclaimingconcessionsontheirpersonaluse.

Suchachangewouldhavehadimplicationsformanybusinesses.ForaNSWsmallbusinessintheITfleetmanagementspace,theimpactwouldhavebeenparticularlysignificant.ThesmallbusinessisaprovideroflogbooksystemsthatenableelectronictrackingofvehicleuseandfollowingtheannouncementtheywereinundatedwithcallsbyorganisationsseekinganefficientmeansofautomatingFBT logbooks.

Smallbusinessesshouldbeawareofthepolicylandscape.Apotentiallysignificantopportunityrelatestochangesintheroll-outoftheNationalDisabilityInsuranceScheme(NDIS)(seeBox7:TheNDIS).Theroll-outoftheNDIS,coupledwithashiftfromgovernmenttonon-governmentprovisionofdisabilitycareservicesinNSW,willlikelyprovidesubstantialopportunitiesforsmallbusinesses.Theseopportunitiesmayincludeprovidingsupportservicesforthosewithadisabilityandpossibilitybrokerageservicestohelpthoseseekingsupport.

• Thepolicyandregulatoryenvironmentisasignificantfactorforsmallbusiness

• Manyregulatorychangesareslowandinvolvetransitionperiodsprovidingtimetoadapt

• However,policychangecanalsoberapid,significantlydisruptingmarkets

• Inassessingregulatoryrisksandopportunities,businessownersshouldconsidertowhatextenttheirmarketisunderpinnedbyregulation.

Key points

Box 7: The NDISTheNationalDisabilityInsuranceScheme(NDIS)isanewwayforpeopletogetdisabilitysupport.Theschemeinvolvesgreaterfundingandgreaterchoiceofservicesforpeoplewithdisability.InNSW,theroll-outoftheschemeiscoupledwithashiftfromgovernmenttonon-governmentprovisionofcareandsupportservices.

TheschemecommencedintheHunterareaon1July,2013.AsofFebruary2014,1221participantswereenrolledinthescheme.Thisisexpectedtogrowtoover10,000by2015-16.Roll-outtotherestofNSWfromJuly2016andtobefullyrolledoutby2018.Eventuallyitisexpectedthataround140,000peopleinNSWwillbeparticipantstothescheme.

Theroll-outoftheschemealsoincludesasignificantincreaseinfundingforthesector.By2018theannualfundingfortheNSWdisabilitysectorwillmorethandouble,frommorethan$2.5billionto$6.4billion.Anadditional50,000peoplewithadisabilitywillbeeligibleforsupport,creatingupto25,000newfulltimejobsinthedisabilitysectorandsubstantialbusinessopportunities.

Formoreinformationseewww.ndis.gov.au/providers

Source: NSWFACS(2014)


6. The built environmentGrowth in the population and economy of NSW places increasing pressure on existing infrastructure and available housing.

TheNSWGovernment’sresponsetothesepressuresissetoutinanumberofgrowthstrategiesandplansforSydneyandtheregions.26Thesestrategiesandplansshouldbeofgreatinteresttosmallbusinessesastheydescribehousingandemploymentgrowthandmajordevelopmentssuchastheestablishmentofbusinessparksandinfrastructure.

AkeyaspectoftheSydneyMetropolitanStrategy27isthedevelopmentofWesternSydney,anareatargetedforhalfofallnewjobsinSydneyandlargereleasesoflandforhousing.ThestrategyandrelatedplansdescriberesidentialgrowthcentresintheNorthWestandSouthWestandtheBroaderWesternSydneyEmploymentArea–aregionthatistargetedtobehometo57,000newjobsoverthenext30years.28

RegionalstrategiesexistforotherareasofNSW.Thesedescribeprojectedpopulation,dwellingandemploymentgrowthandidentifykeydevelopmentsforbusinesssuchaschangestotransport,urbancentresandemploymentlands(e.g.industrialandbusinessparkareas).Thesestrategiesandplansshouldbeakeyconsiderationforsmallbusinessesthatareestablishingorreviewingtheirphysicallocationandforthoseinthebuildingandconstructionindustry.

Infrastructure developmentsSupportingthegrowthstrategiesareanumberofnotabledevelopmentsandinfrastructureprojectsthatareunderwayorhavebeencommittedto.Majordevelopmentsinclude:

• theNorthWestRailLink(seeBox8:NorthWestRailLink)

• WestConnexandotherupgradestoSydney’sorbitalnetwork(seeBox9:WestConnexandSydney’sOrbitalnetwork)

• BadgerysCreekairport(seeBox10,page15),and

• PacificHighwayupgrades(seeBox11,page15).

Theseandotherprojectscanhavesignificantimplications

Box 8: North West Rail LinkTheNorthWestRailLinkiscurrentlyAustralia’slargestpublictransportinfrastructureproject.Itwillprovideaheavyraillinktonorth-westernsuburbsconnectingtheRouseHillregiontoEpping.Constructioniscurrentlyunderway.Itisexpectedtobecompletedby2019.

Source: http://nwrail.transport.nsw.gov.au/

Box 9: WestConnex and Sydney’s Orbital networkTheWestConnexprojectinvolves:

• a33kmmotorwaylinkingSydney’swestwiththeCBD,PortBotany,SydneyAirportandthesouthwest,and

• a20kmurbanrevitalisationcorridortobedevelopedprogressivelybetweenCamperdownandParramatta.

Timetable:

• Stage1–ParramattatoCityWestLink,by2019

• Stage2–M5EastAirportLink,by2020

• Stage3–CityWestLinktoStPeters,by2023

Source: www.westconnex.com.au

forsmallbusinessbothduringconstructionandoncetheyarecompleted.Theconstructionphasecanleadtoworkopportunitiesbutalsocausesignificantdisruption.Forexample,thebusinesscaseforWestConnex29notesthat,astypicalofallmajorroadprojects,theconstructionoftheWestConnexmotorwaywillresultinimpacts(includingairpollution,noise,vibrationandcongestion)onbusinessesandcommunities.Giventheurbannatureoftheproject,theseimpactswillbechallengingtomanage.


Dealing with disruptionImagineamajorinfrastructureprojectisplannedtooccurnearyoursmallbusiness.Increasedcongestionmaymakeitmoredifficultforemployeestogettowork,supplierstodelivertoyouandcustomerstovisit.Thenoiseandvibrationmightalsoimpactonbusiness.Toaddresssuchissuesyoumightneedtemporarychangesinyouropeninghours,yoursupplychainorevenyourphysicallocation.Suchchangeswouldinturnhaveimplicationsforcustomersandemployees.Planningforsuchchangesmaybetterhelpmanagetheimpacts.

Oncebuilt,thenewinfrastructurecanchangethecostsofdoingbusiness,oftenstimulatinggrowthopportunities.Forexample,thedevelopmentofBadgerysCreekairportisexpectedtoinjectbillionsofdollarsintothelocalWesternSydneyeconomy.

Box 10: Badgerys Creek airportBadgerysCreekisdestinedtobecomethesiteofSydney’ssecondairport.WhiletheimplicationsforSydneyand,inparticular,WesternSydneywillbedramatic,constructionisnotexpectedtobeginuntil2016.Overtime,theairportisexpectedtocontributeover$6billiontotheWesternSydneyregionaleconomyanddirectlyemployover10,000 FTEs.

Source: PM(2014),DEA(2013).

Box 11: Pacific Highway UpgradeThisisamajorregionalinfrastructureprojectthatincludesupgradingofthehighwaytodualcarriagewayandthecreationofby-passesaroundseveralsmalltowns.Theprojectisresultinginfastertraveltimesforconnectedareas.Thekeyimplicationsforsmallbusinessarethatitwillcreateimprovedopportunitiesfortradeandtourism.

Expectedcompletiondatesofsectionsinclude:

• OxleyHwytoKempseyPlanning–2014

• WoolgoolgatoBallina–2016,and

• WarrellCreektoNambuccaHeads–2017.

Source: www.rms.nsw.gov.auandwww.nics.gov.au/timeline

Theseinfrastructureprojectscanalsoshifteconomicactivity.Forexample,by-passesbuiltaspartofthePacificHighwayhavedramaticallyalteredthebusinessenvironmentinthetownsthathavebeenbypassed.Whileoftenthiscanresultinareductionofactivity,itcancreateopportunitiesfortourism.

Theinfrastructureprojectslistedandothers30willimprovetheflowoffreightwithinNSWandwithinotherareas.Inparticular,thecombinationoftheprojectsshouldfacilitatethefasterdeliveryoffreightalongstrategicroutesthatincludeinternationalroutes.Theprojectsshouldcontributetocontinuingthetrendoffallingcostsofinternationalfreight(byseaorair).Thistrendcoupledwiththeimprovementsintheuseofonlinemethodsofmarketing,communicationandsalesislikelytocontributetoincreasedinternationaltrade,creatingopportunitiesandrisksforsmallbusinesses.31

• NSWGovernment’sstrategiesandplansoutlinekeydevelopmentsinthecomingdecade

• Therearelargeinfrastructureprojectsthatareunderwayand/orarecommittedtoinNSW

• Suchprojectscanhavesignificantimplicationsforbusinessincluding:

–duringconstruction:salesopportunitiesbutalsodisruptionrisks

–oncecomplete:changingthelocaleconomicenvironment

–thetimingandtheimpactsoftheseprojectsarelargelypredictable

Key points


7. Utility costsThe quickest and most cost-effective way for your business to save money is to reduce unnecessary energy use. – Jon Dee ‘Sustainable Growth’ (2010, page 96)

Electricity and gas are often significant inputs for small businesses.

Theoutlookforutilitycostsinthefutureismixed.Todatethegasmarkethasbeenphysicallydisconnectedfrominternationalmarkets.However,fromlate2014,LNG(liquefiednaturalgas)exportfacilitiesinNorthernAustraliawillopenallowinglocalsupplierstoexporttheirproductontointernationalmarkets.Thisdevelopmentisexpectedtoleadtohigherandmorevolatilepricesaslocalgassuppliersareabletosellthegasonaninternationalmarket.Averageregulatedgaspricesareexpectedtoincreasebybetween14.4%and19.4%overthetwoyearstoJune2016.32

Themediumtermoutlook(2to10yearsout)forgasismoreuncertain.Thepricewilldependonanumberoffactors;theseincludeapossiblereductioninexportbarriersfromtheUS,thedevelopmentofnewgassuppliesinChinaandAustraliaandtheuseofalternativeenergysources.33InfactsecuringgassuppliesformsakeypartoftheNSWGasPlan.

Thechangeingaspricesisnotexpectedtobemirroredintheelectricitymarket,asalthoughgasisusedtogenerateelectricity,itscontributionissmall.Electricitypricesroseinrecentyearsbutcurrentshort-termforecastsareforthemarketpriceofelectricitytofallbetweennowand2015/16,primarilyduetoreductioninenvironmentalpolicycosts.34

Theimplicationsofrisingenergycostsmayforsomesmallbusinesssectorsbeverysmall.Incaseswhereallcompetitorsareuniformlyaffected,changesinenergycostsmaybelargelypassedthroughtocustomers.35Nevertheless,smallbusinessesthathavelargeenergycostsmightconsiderhowtheycanreact,suchasseekingwaystobecomemoreenergyefficientand/orreviewingtheirenergysource.

Small business energy efficiencyIfyourenergycostsaresignificant,thenyoushouldbeconsideringoptionstoreduceenergycosts.AspointedoutbyDee(2010,chapter7)andmanyothers,thereareoftenmanyopportunitiesforsmallbusinessestoreducetheirenergycosts.Theseincludeopportunitiesassociatedwithreducingthemainusesofpowerincludinglighting,airconditioningandwaterheatingandofficeequipment.Inthefuture,theremaybeopportunitiestoreduceenergycostsbytakingadvantageoftime-of-usepricing.

Thecostofwaterandwastewaterservicesprovidedbywaterutilitiesdiffersbyregion.PricesinSydneyandsomeotherareasincreasedsignificantlyinrecentyearsinlargepartduetospendingoninfrastructureinresponsetothedrought.InSydneyandsomeotherregions,thepricesaresetbyaregulatorforfour-yearperiods.Duetoarestructuringofpricesinthelastpricingperiod,thewaterservicesbillforsomesmallbusinessesmayhavebeenincreasingandforsome,decreasing.36

TheNSWOfficeofEnvironmentandHeritageprovidesmanyefficiencytoolswhichcanbefoundat:www.environment.nsw.gov.au

• Theshort-termoutlookforutilitypricesismixed.Gaspricesareexpectedtoincreaseandelectricitypricesareexpectedtofall

• Smallbusinessesshouldbemindfulofopportunitiestoreduceenergycoststhroughreducingenergyuseandefficienttimingofuse.

Key points


ConclusionExpect the best, plan for the worst, and prepare to be surprised – Denis Waitley

As physicist Neils Bohr is reputed to have said “Prediction is very difficult, but particularly about the future”. Even if it doesn’t make us clairvoyant, thinking about the future can help. Some developments can be forecast with confidence. Where there are uncertainties, considering possible futures will help you be a little more ready for the inevitable surprises.

Withalittleadditionalinvestmentoftimeyou,asasmallbusinessowner,mayidentifymanyoftherisksandopportunitieslyingahead.

• Somechanges(suchastheageingpopulationandchangestothebuiltenvironment)arelargelypredictable–businessesshouldconsidertheseintheirplanning

• Therearemanythings,includingmacro-economicchanges,whicharemuchhardertopredict

• Alooktothefuturecanhelpyoubecomemorereadytorespondtochange.

Key points

A good forecaster is not smarter than everyone else, he merely has his ignorance better organised. – Anon.


Endnotes1. Athirdcriterionthatisoftenapplied

isthattheyarerationalisedinhindsightasbeingforeseeable.

2. Basedonasurveyofeconomicforecaststhroughoutthe1990stheIMFeconomist,PrakashLounganiconcludedthat:1.forecastsareallmuchthesame;and2.thatthepredictiverecordofeconomistswasterrible.Source:TimHarford,www.ft.com/intl/cms/s/2/14e323ee-e602-11e3-aeef-00144feabdc0.html#axzz372aRVkkS.

3. EconomicgrowthisbasedonchangesinGDP(GrossDomesticProduct),ameasureofthevalueofwhatisproducedinAustralia.

4. Confidenceintervalsrepresentanexpectedrange.Forexample,itisexpectedthat90%ofthetimetheoutcomewillbewithinthe90%confidenceinterval.

5. http://about.sensis.com.au/Small-Business/Sensis-Business-Index/

6. Theimplicationsofexchangeratemovementscanbedifficulttoassessastheyaffectthecostsofbothimportsandexportsandaretypicallycorrelatedwithchangesinother prices.

7. Naturally,therewillalsobesocialdemographicchangesthatshapepeople’sattitudes,consumerbehaviourandworkforceparticipation.Unlikechangesinage,suchchangesarenotpredeterminedandthusmoredifficulttopredict.

8. BasedonABSSeriesBprojections.

9. Seewww.planning.nsw.gov.au/en-us/planningyourregion/regionalstrategies.aspx.

10. Selecteditemsofinterestshown.Source:ABS(2011)andBradbury& Mendolia(2012).

11. Forpurposesofdeterminingthedependencyratioaworkingageof15to65isused.

12. www.immi.gov.au/settlement.

13. Source:NBNCo(2014).Seewww.nbnco.com.au/when-do-i-get-it/rollout-map.htmlfordetails.

14. Thecasestudiesofanumberofbusinessescanbefoundatwww.nbnco.com.au/nbn-for-business/case-studies.html.

15. Source:ABS(2014).

16. TheCIE(2014,page11).

17. Sense-T(www.sense-t.org.au)isanentityestablishedbytheUniversityofTasmania.

18. Sensis(2013).

19. Sensis(2014).

20. ibid.

21. ibid.

22. Sensis(2014,page66).

23. Adviceondealingwithsuchissues.See,forexample,D&BSmallBusinessatwww.dnbsmallbusiness.com.au/Marketing/Coping_with_a_negative_review_online/indexdl_10676.aspx.

24. ProductivityCommission(2013,AppendixE).

25. Thisisanexampleofapolicydevelopedbythe(financialservices)industrybutwhichrequiredaregulator’sapproval(AustralianCompetitionandConsumerCommission).

26. www.planning.nsw.gov.au/en-us/planningyourregion.aspx.

27. http://strategies.planning.nsw.gov.au/MetropolitanStrategyforSydney.aspx.

28. BroaderWesternSydneyEmploymentArea,DraftStructurePlan,June2013.

29. SydneyMotorwaysProjectOffice(2013).

30. AnotherimportantprojectistheconstructionofanintermodalfreightterminalatMoorebankalongwithaportshuttleoperationtoandfromPortBotany.Constructionisduetocommencein2015andbecompletedby2017.Source:www.nics.gov.au.

31. Whiletheinfrastructureprojectswilleasecongestiononkeyroutes,itappearslikelythattrafficcongestioninSydneywillcontinuetoincreaseasthepopulationandthevolumeoftrafficcontinuestoexpand.Thismaybecomeanincreasinglyimportantconsiderationforsmallbusinessinprovidingservicesinthemediumterm.BTRE(2007)forecastthatcongestioncostsperkmtravelledinSydneywouldriseby50%between2005and2020.

32. SeeIPART(2014),Draftreport.

33. Woodetal.(2013,page14).

34. AEMC(2013).

35. Notethatbusinessshouldbeawarethattherewillbeclosescrutinypricechangesinresponsetotherepealofthecarbontax.Seewww.accc.gov.au/business/carbon-tax-repeal/carbon-tax-price-reduction-obligation

36. SeeIPART(2012).


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ABS(AustrlaianBureauofStatistics)(2014).HouseholdExpenditureSurvey,Australia:SummaryofResults,2009–10NSW,Released6Sep2011.

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