Business Loans Australia :: News
SHARE

Share this news item!

Small Biz Survival: Alarming Cost of Doing Business Down Under

Small Biz Survival: Alarming Cost of Doing Business Down Under

Small Biz Survival: Alarming Cost of Doing Business Down Under?w=400

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

ANZ Bank's Financial Performance and Strategic Cost Reductions
ANZ Bank's Financial Performance and Strategic Cost Reductions
14 Nov 2025: Paige Estritori
ANZ Group has reported a 14% decline in annual cash earnings, amounting to A$5.79 billion for the fiscal year ending September 30, 2025. This downturn is primarily attributed to a significant post-tax impact of A$1.11 billion, which includes A$414 million in redundancy costs for 3,500 employees and A$264 million in penalties from a regulatory lawsuit. - read more
CBA's First-Quarter Financial Results: Balancing Growth and Margin Pressures
CBA's First-Quarter Financial Results: Balancing Growth and Margin Pressures
14 Nov 2025: Paige Estritori
The Commonwealth Bank of Australia (CBA), the nation's largest bank by market value, has reported a modest increase in first-quarter cash profit, achieving approximately A$2.6 billion. This 1% rise from the previous two-quarter average is primarily driven by robust growth in home loans and household deposits. However, the bank's net interest margin has declined due to lower mortgage rates and intensified competition, reflecting the challenges in maintaining profitability amidst a competitive lending environment. - read more
October Sees Uptick in Australian Business Activity, NAB Reports
October Sees Uptick in Australian Business Activity, NAB Reports
14 Nov 2025: Paige Estritori
A recent survey by the National Australia Bank (NAB) reveals an improvement in Australian business conditions for October 2025, marked by a rise in sales and profits. The NAB business conditions index increased by one point to +9, reaching its highest level since March 2024. Despite this positive trend, business confidence experienced a slight decline, dropping one point to +6, though it remains above the long-term average. - read more
Japanese Banks SMBC and MUFG Propel Business Lending Expansion in Australia
Japanese Banks SMBC and MUFG Propel Business Lending Expansion in Australia
06 Nov 2025: Paige Estritori
Australia's business lending sector is witnessing a significant shift as Japanese banking giants Sumitomo Mitsui Banking Corporation (SMBC) and Mitsubishi UFJ Financial Group (MUFG) emerge as leading growth drivers. In July 2025, the combined business loan books of Australia's top 10 authorised deposit-taking institutions (ADIs) reached A$925 billion, with SMBC and MUFG recording the highest percentage growth rates among them. - read more
ANZ Ceases Share Buyback to Fund Strategic Restructuring
ANZ Ceases Share Buyback to Fund Strategic Restructuring
29 Oct 2025: Paige Estritori
In a significant strategic shift, ANZ Group has announced the cessation of its remaining A$800 million share buyback program. This decision is aimed at bolstering the bank's cash reserves to support a comprehensive restructuring plan under the leadership of CEO Nuno Matos. - read more
RBA's October 2025 Review Affirms Australia's Financial Resilience
RBA's October 2025 Review Affirms Australia's Financial Resilience
29 Oct 2025: Paige Estritori
The Reserve Bank of Australia (RBA) has released its October 2025 Financial Stability Review, providing a comprehensive assessment of the nation's financial system. The report underscores the resilience of Australia's financial institutions, households, and businesses in the face of elevated global uncertainties. - read more
Australian Business Conditions Remain Steady in September 2025
Australian Business Conditions Remain Steady in September 2025
29 Oct 2025: Paige Estritori
In September 2025, Australian business conditions remained steady, according to the latest survey from National Australia Bank (NAB). The survey's business conditions index held firm at +8, while the business confidence index saw a slight increase of 3 points to +7, both figures sitting just above their long-term averages. - read more


Business Loans Articles

Financing Options to Boost Your Business Liquidity
Financing Options to Boost Your Business Liquidity
Liquidity is a vital aspect of any successful business, representing the ability to meet short-term obligations and to manage cash flow effectively. High liquidity indicates that a company can swiftly convert assets into cash to cover its liabilities. This financial agility enables businesses to navigate unpredictability, seize opportunities, and maintain operational stability. - read more
Maximizing Your Chances of Approval for a Startup Loan in Australia
Maximizing Your Chances of Approval for a Startup Loan in Australia
Securing financing is a pivotal step for any startup looking to establish itself and grow. In Australia, the startup lending landscape is buoyant, offering a mix of traditional and innovative financing options. The financial ecosystem is robust yet competitive, and understanding how to navigate it is crucial for new business owners. - read more
Business Loans in Australia: Tips for Finding the Perfect Fit
Business Loans in Australia: Tips for Finding the Perfect Fit
Funding is crucial for startups and small businesses looking to grow and succeed. In Australia, there are multiple financing options available, each catering to different business needs. These options range from traditional bank loans to more flexible lines of credit, helping entrepreneurs find the best fit for their specific requirements. - read more
The Ultimate Checklist for Applying for a Business Loan in Australia
The Ultimate Checklist for Applying for a Business Loan in Australia
Welcome to the world of boating! Whether you've just bought your first boat or are considering making a purchase, it's essential to understand the importance of regular maintenance. Proper upkeep not only extends the life of your boat but also ensures safety while out on the water. - read more
Breaking Down Barriers: How to Overcome Delays in Business Loan Approvals
Breaking Down Barriers: How to Overcome Delays in Business Loan Approvals
Embarking on a business endeavor often requires substantial financial support, and securing a business loan can be a crucial step towards progress and expansion. A well-prepared loan application not only showcases your business in its best light but also significantly enhances the prospects of obtaining the needed funds. Attention to detail and a thorough understanding of the lending process can streamline your journey to approval. - read more
Mastering Cash Flow: Essential Tips for Expanding Your Business's Working Capital
Mastering Cash Flow: Essential Tips for Expanding Your Business's Working Capital
Cash flow is the lifeblood of any business, signifying the money that flows in and out of your operations. It's essential for covering daily expenses, paying employees, and capitalizing on growth opportunities. Maintaining a healthy cash flow ensures that a business can meet its obligations and invest in its future. - read more
Customized Leasing Solutions: Finding the Right Terms for Your Business Needs
Customized Leasing Solutions: Finding the Right Terms for Your Business Needs
Equipment leasing presents a strategic financial opportunity for Australian businesses seeking to maximize operational efficiency without the hefty price tag of purchasing. As many companies strive to stay competitive and agile in a bustling economic landscape, the importance of flexible asset acquisition cannot be understated. - read more


Need Help Finding a Loan?
Loan Amount:
Postcode:

All quotes are provided free and without obligation by a specialist from our national broker referral panel. See our privacy statement for more details.

All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase
Liquidity:
The ease with which an asset or security can be converted into cash without affecting its market price.