Small Biz Survival: Alarming Cost of Doing Business Down Under

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.

In a striking revelation, nearly 1.25 million small businesses in Australia teeter on the brink of collapse as increasing living costs gnaw away their profit margins.

During a recent senate hearing on Australia's cost-of-living crisis, Council of Small Business Organisations Australia (COSBOA) director, Adele Sutton, spotlighted the precarious state of the nation’s small enterprises.

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

ASIC's Review Uncovers Key Issues in Motor Vehicle Financing

21 Nov 2025: Paige Estritori

The Australian Securities and Investment Commission (ASIC) has released preliminary insights into its ongoing review of the motor vehicle finance sector, shedding light on practices that may be detrimental to consumers. The review aims to identify mechanisms to reduce consumer harm and improve outcomes for all car finance customers, including those in regional and remote areas and First Nations communities. - read more

New Government Initiative Offers Affordable Loans for Electric Vehicle Purchases

21 Nov 2025: Paige Estritori

In a significant move to promote the adoption of electric vehicles (EVs) among small and medium-sized enterprises (SMEs), the Australian government has announced a $50 million partnership with Metro Finance. This initiative aims to provide low-interest loans to businesses for the purchase of electric cars, trucks, utes, and forklifts, thereby reducing energy bills and emissions. - read more

Club Marine Recognised for Outstanding Service with 2025 Product Review Award

19 Nov 2025: Paige Estritori

Club Marine, Australia's leading provider of recreational boat insurance, has been honoured with the 2025 Product Review Award for Insurance. This accolade is a testament to the company's unwavering commitment to customer satisfaction and service excellence. - read more

Markel Insurance Expands into Australian Marine Market with New Leadership

19 Nov 2025: Paige Estritori

Markel Insurance, a prominent global insurer, has announced the appointment of Tim Wills as Head of Marine - Australia. This strategic move signifies Markel's entry into the Australian marine insurance market, beginning with marine cargo coverage. - read more

Addressing the $38 Billion Equity Shortfall in Australian SMEs

19 Nov 2025: Paige Estritori

Australian small and medium-sized enterprises (SMEs) are pivotal to the nation's economy, representing only 6% of all businesses yet contributing 26% to the Gross Domestic Product (GDP). Despite their significance, these businesses face a substantial barrier: a $38 billion equity funding gap that stifles their growth potential. - read more

Click for more Finance News

Truck Loans Articles

Understanding the Fine Print: What to Look Out for in Truck Loan Contracts

Stepping into the realm of commercial truck financing can be a highway riddled with complex terms and conditions. Understanding commercial truck loans is not only about getting the keys to a new vehicle; it's a crucial investment in your business's future. As a borrower, you need to navigate through the fine print to find a loan that fits like a glove. - read more

Maximizing Your Investment: Strategies for Enhancing Truck Resale Value in Australia

The commercial vehicle market in Australia is a cornerstone of the transportation and logistics industries, with trucks playing an indispensable role. Whether for long-haul deliveries across the vast distances of the continent or for urban distribution, trucks are critical assets for businesses and entrepreneurs alike. This significance makes it essential for commercial vehicle buyers to understand the dynamics of truck resale values in Australia. - read more

Maximizing Your Fleet Potential: How Truck Financing Shapes Success

Trucks play a pivotal role in the Australian logistics and transport industry, serving as the lifeblood that keeps commerce flowing. The dependable rumble of engines crisscrossing the nation's highways is more than just a symbol of industry; it's a critical component of productivity and economic stability. Without these workhorses facilitating the timely movement of goods, the Australian market would face significant challenges meeting the demands of both businesses and consumers alike. - read more

Understanding Credit Scores and Their Impact on Your Commercial Vehicle Loan Terms

Finding the right financing for a commercial vehicle in Australia can be a critical step for businesses and individuals alike. Whether it's for a single van or an entire fleet of trucks, understanding the intricacies of commercial vehicle loans is key to securing a deal that aligns with your financial goals. One factor that stands out in determining your loan terms is the credit score—a numerical representation of your creditworthiness. - read more

Why a Pre-Approval Can Give You an Advantage When Buying a Truck

When purchasing a truck, whether for personal use or business, navigating the financial landscape can be daunting. This is where pre-approval comes into play. But what exactly does pre-approval mean in the context of buying a truck? - read more

Start Here

Get a free truck loan eligibility assessment and compare truck finance and leasing options without accessing your credit file!!

Knowledgebase

Fixed Income:
A type of investment that pays regular interest or dividends, such as bonds or preferred stocks.