Australian small companies are fighting back against industry red tape and the rising cost of living, according to a “confronting” investigation. After speaking with hundreds of company owners nationwide, the Australian Chamber of Commerce observed that many of them are concerned about having to close their doors shortly permanently.
Australian small companies are fighting back against industry red tape and the rising cost of living, according to a “confronting” investigation. After speaking with hundreds of company owners nationwide, the Australian Chamber of Commerce observed that many of them are concerned about having to close their doors shortly permanently.
Over 45% of those surveyed indicated they had considered closing their doors permanently due to rising expenses, overbearing bureaucracy, and new regulations like the “right to disconnect.” Chamber CEO Andrew McKellar informed The Daily Telegraph that a “crisis” is imminent.
“It is dire,” he stated. “There are a range of different factors hurting small business, but the red-tape burden—tax compliance, payroll, and all those things that occur in the background – have been cited by small business as key factors.”
He referred to the earlier this year approved Closing Loopholes law, which includes labor hiring modifications, the criminalization of wage underpayments, the “right to disconnect” regulations, and many other measures.
Still, McKellar claimed that the plethora of additional regulations “amounts to closing a noose” around the throats of several struggling small enterprises.
According to the Chamber’s research, 6% of firms nationwide spend more than 20 hours a week dealing with bureaucracy, and over 90% of them stated that bureaucracy is affecting how they wish to manage their business.
The percentage of firms considering closing their doors increased to 57% in rural and regional parts of the nation, compared to 45% nationwide.
Living expenses are draining companies of every dollar
The owner of Ciao Cafe and Cakes in Queanbeyan, Queensland, Connie Black, told 7News that small companies find it difficult to decide what to charge customers and what to keep for themselves.
She explained the impact of the recent bird flu outbreak, which caused one of her cafe’s most essential menus to explode in cost.
“Eggs recently jumped $26 for a box; like, that’s ridiculous,” she stated. “How do you pass that on? You can’t just pass it on all the time.”
The cost-of-living crisis has also had a bad effect on Aussie’s ability to hold onto their cash.
April Brodie, owner of a beauty shop, told the ABC that she has seen a steady decline in clientele because they are unable to afford frequent visits.
“You know when people would come [every] four weeks? Maybe they will come [every] eight weeks now, or they’ll stretch things out to three months,” she continued. “People will often say to you, ‘I just can’t afford it; you know we’ve just got extra bills; I can’t afford it’.”
A recent study by credit reporting company illion revealed that, on average, food services companies were eighteen days behind in paying their invoices, compared to two weeks for retail and construction companies.
Since the beginning of July, these small company owners have also had to contend with an increase in the minimum wage.
The next three months might be disastrous, according to Anne Nalder of the Small Business Association of Australia.
“It’s very, very difficult to justify that [minimum wage] increase at this stage of the economic cycle,” she further continued.
“[Small business owners] have not only their mortgages, but they’ve got to find money to pay their staff, and when you increase wages, you also increase the contribution to super and all those other added costs.”
Over 45% of those surveyed indicated they had considered closing their doors permanently due to rising expenses, overbearing bureaucracy, and new regulations like the “right to disconnect.” Chamber CEO Andrew McKellar informed The Daily Telegraph that a “crisis” is imminent.
“It is dire,” he stated. “There are a range of different factors hurting small business, but the red-tape burden—tax compliance, payroll, and all those things that occur in the background – have been cited by small business as key factors.”
He referred to the earlier this year approved Closing Loopholes law, which includes labor hiring modifications, the criminalization of wage underpayments, the “right to disconnect” regulations, and many other measures.
Still, McKellar claimed that the plethora of additional regulations “amounts to closing a noose” around the throats of several struggling small enterprises.
According to the Chamber’s research, 6% of firms nationwide spend more than 20 hours a week dealing with bureaucracy, and over 90% of them stated that bureaucracy is affecting how they wish to manage their business.
The percentage of firms considering closing their doors increased to 57% in rural and regional parts of the nation, compared to 45% nationwide.
Living expenses are draining companies of every dollar.
The owner of Ciao Cafe and Cakes in Queanbeyan, Queensland, Connie Black, told 7News that small companies find it difficult to decide what to charge customers and what to keep for themselves.
She explained the impact of the recent bird flu outbreak, which caused one of her cafe’s most essential menus to explode in cost.
“Eggs recently jumped $26 for a box; like, that’s ridiculous,” she stated. “How do you pass that on? You can’t just pass it on all the time.”
The cost-of-living crisis has also had a bad effect on Aussie’s ability to hold onto their cash.
April Brodie, owner of a beauty shop, told the ABC that she has seen a steady decline in clientele because they are unable to afford frequent visits.
“You know when people would come [every] four weeks? Maybe they will come [every] eight weeks now, or they’ll stretch things out to three months,” she continued. “People will often say to you, ‘I just can’t afford it; you know we’ve just got extra bills; I can’t afford it’.”
A recent study by credit reporting company illion revealed that, on average, food services companies were eighteen days behind in paying their invoices, compared to two weeks for retail and construction companies.
Since the beginning of July, these small company owners have also had to contend with an increase in the minimum wage.
The next three months might be disastrous, according to Anne Nalder of the Small Business Association of Australia.
“It’s very, very difficult to justify that [minimum wage] increase at this stage of the economic cycle,” she further continued.
“[Small business owners] have not only their mortgages, but they’ve got to find money to pay their staff, and when you increase wages, you also increase the contribution to super and all those other added costs.”
- Published By Team Australia News
