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.

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
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Finance News

Clear

SME Borrowing Rebound Puts Planning Ahead of Panic

04 Nov 2026: Paige Estritori

Australian SME borrowing activity appears to have regained momentum, with newly reported Banjo Loans Barometer data for the quarter to 30 September 2026 pointing to stronger loan applications, more loans drawn and a continued focus on cash buffers. The result is notable because it follows months of more cautious borrowing signals from parts of the small business market, and suggests many firms are not simply waiting for conditions to improve before reviewing their funding position. - read more

SMEs Turn to Non-Bank Funding as Investment Plans Hold Up

28 Oct 2026: Paige Estritori

Australian SMEs planning their next round of investment are increasingly looking beyond traditional bank funding, with new ScotPac SME Growth Index findings reported by Inside Small Business on 22 October 2026 showing non-bank finance has reached a record share of intended funding use. The result is a notable signal for business owners and finance managers: the question is no longer simply whether credit is available, but which structure best matches the timing, risk and cash flow profile of the business. - read more

Business Confidence Signals Put Loan Readiness Back in Focus

16 Sep 2026: Paige Estritori

Latest Australian business survey reporting is sending a practical message to owners and finance managers: trading conditions may be holding up in parts of the economy, but confidence remains fragile. For SMEs, that mix matters. When revenue is uneven, input costs are sticky and customers are cautious, the timing and structure of new borrowing can become just as important as the headline interest rate. - read more

Why ATO Interest Changes Matter for Business Borrowers

09 Sep 2026: Paige Estritori

A tax change now working through Australian business finances deserves close attention from owners, directors and finance managers. Since 1 July 2025, the ATO’s general interest charge and shortfall interest charge have no longer been tax-deductible. For businesses carrying overdue tax or correcting underpaid obligations, that can lift the effective after-tax cost of falling behind. - read more

Payday Super Puts Payroll Timing Under the Finance Microscope

02 Sep 2026: Paige Estritori

Australia’s move towards Payday Super is more than a compliance update for employers. For many small and medium-sized businesses, it changes the rhythm of payroll-related cash outflows and places a sharper focus on whether day-to-day liquidity is strong enough to meet obligations as they fall due. - read more

Specialist SME Lending Remains Open, But Discipline Matters

26 Aug 2026: Paige Estritori

Latest market reporting around specialist SME lender Judo Bank points to a business credit market that is not shutting down, but is becoming more deliberate. The lender’s continued focus on relationship-led lending, deposits and small to medium-sized business borrowers suggests demand for finance remains present among firms with clear plans and serviceable cash flow. - read more

Payment Timing Keeps Pressure on SME Working Capital

19 Aug 2026: Paige Estritori

Fresh small business indicators are again pointing to a familiar challenge for Australian SMEs: trading activity may continue, but the timing of cash receipts is still creating pressure. Recent industry commentary has highlighted uneven payment behaviour, cautious customer spending and a more deliberate approach to investment among smaller firms. For owners and finance managers, that combination can make working capital planning just as important as sales growth. - read more

Click for more Finance News