The worldwide recession has come and gone with the Australian economy holding up very well compared to the rest of the world. I believe there will be some slow times for small business during 2010 if the Reserve Bank continues to lift interest rates. The cost of home loan mortgage repayments is a key driver to consumer confidence in the Australian economy.

The rising cost of finance is also a warning sign for small business owners. Higher interest rates coupled with lending restrictions by the big-four-banks has meant that obtaining business finance is not easy at present. I suggest that all business owners should continue monitoring cash flow on a regular basis. Be aware of trends or changes in cash flow patterns in your business. Ensure that you are keeping in regular contact with your bank manager and informing them of any changes within your business.

2010 will be an interesting year for small business with a number of important government changes taking place. The most significant will be the introduction of Modern Awards for all employees, new emissions trading scheme and the impact of energy costs and the final report by the Henry Review on the Australian tax system.

The Taggart Partners team will be watching these issues carefully and as information comes to hand we will provide you updates as we believe they will affect you and your business.

On behalf of the staff and management team, Melanie, Cameron and I wish all of our clients and friends a safe and very happy Christmas. Have a great holiday season with family and friends and re charge for an exciting 2010 ahead.

Ross