By Matthew Addison, Chair, Council of Small Business Organisations Australia (COSBOA)
Australia’s small businesses are being squeezed from every direction, and the consequences are starting to show.
Rising costs paired with cautious consumer spending as cost-of-living pressures persist are making it harder to keep the doors open.
Meanwhile, government decisions are adding to the pressure, with business owners struggling to plan around constantly shifting rules.
The recent backflip over credit card payments for tax bills, the scrapping of card surcharges and changes to capital gains tax and discretionary trusts have added to the uncertainty facing small businesses, leaving owners wondering what might change next.
For businesses trying to manage cash flow, plan for the future and make decisions about investment and employment, it’s like juggling balls that keep changing shape and size without warning.
Australia’s workplace laws have become so complicated that even some of our largest employers, with entire departments dedicated to compliance, have struggled to get them right.
If they can’t navigate the system, how can we reasonably expect a suburban café owner or a tradie employing five people to do so?
Every hour spent deciphering regulations is an hour taken away from serving customers, growing the business or creating jobs. And every additional obligation can make hiring another employee feel like a risk.
The figures suggest that hesitation is growing.
Around 64 per cent of Australian small businesses now employ nobody beyond the owner, up from 59 per cent just a few years ago. Last year, only around three per cent of self-employed businesses made the leap to becoming employers, a new low.
That should concern every Australian. Small businesses give young people their first jobs, train apprentices and support local communities. When owners decide employing someone is too difficult or expensive, everyone loses.
We’re also missing opportunities to help them become more productive. Artificial intelligence (AI) could save owners valuable time, yet many still need practical support to use it confidently and safely.
After six years on the COSBOA Board, including five as Chair, I’ve seen firsthand how resourceful Australian small business owners are. I’ve also seen how quickly the cumulative weight of policy decisions can erode their confidence.
Policy makers need to consider the combined impact of their decisions, simplify compliance and give owners greater certainty to invest and employ.
Small businesses have shown they’re prepared to work hard, adapt and take risks. They deserve policies that give them room to grow.
