New research has revealed Western Australia small business employees could enjoy pay rises, more incentives and upgraded work equipment if banks abolished business account fees, a new survey shows.
New research has revealed Western Australia small business employees could enjoy pay rises, more incentives and upgraded work equipment if banks abolished business account fees, a new survey shows.
The independent survey of small business owners, commissioned by Suncorp and compiled by Pure Profile came as Suncorp announced it will abolish business account-keeping fees and deposit fees on everyday business banking accounts.
Suncorp Bank executive manager Tony Meredith said Suncorp could save businesses up to $6000 a year.
"Suncorp is now the only bank in Australia without any deposit fees for business customers," Mr Meredith said.
"Lots of other banks have tinkered with fees and announced short-term fee relief but this a genuine and enduring change for Suncorp business banking customers.
"Small business owners can spend up to $500 or more per month on account keeping fees. That's money that could be reinvested back into the business or the bottom line.
"Many business owners in the survey indicate they would pump the savings back into equipment and staff incentives."
When quizzed about how they would spend the money saved on bank fees, 52 per cent of Western Australia small business owners said they would upgrade existing equipment.
Another 13 per cent said they would buy drinks for staff celebrations and 8 per cent would give employees a pay rise.
The Suncorp survey also found hidden charges was the number one bank account gripe for Western Australia small business owners, with 27 per cent of respondents saying that's what they hated most followed by complicated fees (26 per cent) and fee changes without warning (25 per cent).
"By cutting fees for Suncorp small business accounts we will reduce the stress for business owners as well as the cost," Mr Meredith said.
Customers will not have to pay any charges for deposits in the new business accounts, a key point of pain for many small businesses.
Business account customers will also have unlimited transactions for all direct credits and debits, internet banking transactions and BPAY payments.
Mr Meredith said small businesses often had tight cash flows and greatly benefited from cost savings.
"Small businesses are the lifeblood of the Australian economy so I'm glad we're able to support them," he said.
"We have also reduced the three-year fixed rate for small business owners at a time where rates are expected to increase.
"More people are choosing to fix their business loans in this market so the slashed rate option makes it even more attractive for small businesses."
The abolishment of fees comes as Suncorp-Metway posed a 41 per cent increase in net profit to $364 million for the six months to the end of December 2009.