Small Biz Survival: Alarming Cost of Doing Business Down Under

5

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

Addressing the hearing, chaired by Liberal senator Jane Hume, Ms. Sutton noted that 49 per cent of 2.5 million small businesses are either barely breaking even or running at a loss. She emphasized that when a business fails to break even, the burden primarily shifts onto the owner, often compelling them to dip into personal savings to keep operations afloat. The hearing included notable participants like Australian Restaurant and Cafe Association CEO Wes Lambert and Restaurant and Catering Australia CEO Suresh Manickam.

Sutton attributed this worrisome trend to an unpredictable mix of rising energy costs, burdensome regulatory frameworks, and intricate changes in industrial relations. Remarkably, she highlighted that wage growth has not proportionality matched productivity, fanning the flames of economic strain.

Offering further insights into the cost-of-living turmoil, Suresh Manickam pointed out that the crisis is predominantly driven by four elements: escalating energy prices, heightened interest rates, surging labor costs, and sluggish productivity. Manickam lamented that cafe and restaurant owners are particularly besieged by the government’s convoluted changes in industrial relations laws, resulting in what he described as "IR fatigue."

"These modifications are causing a fundamental and progressively adverse impact," Manickam conveyed, stressing the critical need for energy stability and government intervention to ensure an enduring, sustainable energy infrastructure. While business owners appreciated the government’s recent energy rebate, Manickam insisted that it provided minimal relief. "It’s not even a sugar hit," he remarked, suggesting that more substantial measures are necessary to alleviate the financial pressure on small businesses.

This transformative discussion was originally reported by NewsWire, where the pressing challenges confronting Australia's small business sector were brought to fore, demanding urgent attention and solutions.

Published:Saturday, 17th Aug 2024
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Clear

Australia's Marine Industry Surges to $229 Billion Economic Output

05 Dec 2025: Paige Estritori

Australia's marine industry has demonstrated remarkable resilience and growth, achieving an economic output of $229 billion in 2023. This represents a 19% increase compared to two years prior, as reported by the Australian Institute of Marine Science (AIMS). The sector now supports 712,000 full-time equivalent jobs, marking a 52% rise in employment. - read more

Australia and Vanuatu Strengthen Ties with $325 Million Nakamal Agreement

05 Dec 2025: Paige Estritori

In a significant move to bolster regional partnerships, Australia and Vanuatu have signed the Nakamal Agreement, a $325 million bilateral treaty aimed at enhancing economic, security, and cultural cooperation. Named after Vanuatu's traditional communal meeting place, the 'nakamal,' this agreement underscores the deepening ties between the two nations. - read more

Austal Limited Boosts U.S. Shipbuilding with $100 Million EFA Loan

05 Dec 2025: Paige Estritori

Austal Limited, a prominent Australian shipbuilder, has secured a $100 million loan from Export Finance Australia (EFA) to enhance its shipbuilding operations in Mobile, Alabama. This strategic funding is earmarked for the development of the Final Assembly 2 (FA2) project, a significant initiative aimed at increasing Austal's capacity to construct vessels for the U.S. Navy and Coast Guard. - read more

RBA's Interest Rate Reduction: A Boon for Australian SMEs

05 Dec 2025: Paige Estritori

The Reserve Bank of Australia's (RBA) recent decision to reduce the official cash rate by 25 basis points to 3.60% presents a significant opportunity for small and medium-sized enterprises (SMEs) across the nation. This adjustment, aimed at addressing moderating inflation and a tight labour market, is set to lower borrowing costs, thereby facilitating business growth and expansion. - read more

Australian SMEs Embrace Non-Bank Lenders for Flexible Financing

05 Dec 2025: Paige Estritori

In a significant shift within Australia's financial landscape, small and medium-sized enterprises (SMEs) are increasingly opting for non-bank lenders to meet their financing needs. Recent data indicates that demand for non-bank lending among SMEs has reached 55% in 2025, marking a substantial increase from previous years. - read more

Click for more Finance News