Small businesses ‘do it tough’, warns industry body

Small businesses are struggling in a higher interest rate environment and the key body representing them wants decisive government action.

Council of Small Business Australia president Matthew Addison says the nation’s two and a half million small businesses are facing a “critical moment”.

“They don’t earn enough, they work hard and the burden of compliance is demoralizing,” he told his organisation’s national conference in Sydney on Wednesday.

He cited research by the Australian Small and Family Business Ombudsman showing 43 per cent of small businesses failed to make a profit and 75 per cent of small business owners take home less than the average wage.

“These business indicators reflect what we as industry leaders hear anecdotally — that small businesses are struggling,” he said in his opening remarks.

With a federal budget due in May and an election on the horizon, Mr Addison said small businesses should be “front and centre”.

“With the major parties locked tightly together in the polls, how do we make sure the voices of 2.5 million small businesses and their 5.1 million employees are heard loud and clear?

“But equally, how do we set policy agendas that support us well beyond the election cycle?” he asked during his address.

His speech was followed by Opposition Leader Peter Dutton, who delivered on his plan to kick-start economic activity and create better conditions for the private sector.

“The increased power of central government and the union over our economy only reduces productivity at a time when we need it to increase,” he said.

The opposition leader highlighted the government’s industrial relations changes, tax reforms and “renewables only” energy policy as examples of economic mismanagement.

“The coalition’s vision for the country is to make our nation competitive again and restore economic confidence,” he said.

He promised to roll back “excessive government intervention” and “remove regulatory roadblocks”, which he said would allow businesses to “thrive”.

A yet-to-be-announced energy policy involving nuclear technology has also been flagged as an opportunity to boost economic competitiveness and increase productivity by reducing energy costs.

“Australia needs to be an energy powerhouse if we want to continue manufacturing in this country,” he said.

The opposition has already foreshadowed a tilt towards nuclear technology and is working on a policy of potentially siting reactors on old coal plant sites to take advantage of existing transport infrastructure.

He said he wants to expand the nation’s manufacturing capabilities by boosting the resource and defense sectors and developing a domestic green steel industry.

“But these goals cannot be achieved without cheap, consistent and clean energy,” he said.

“Nuclear is the only proven technology that emits zero emissions, can reinforce renewables and provides cheap, consistent and clean energy.”

Treasurer Jim Chalmers pursued what he described as a “no-cost nuclear fantasy”.

“If (the opposition) really cared about workers and small businesses, they wouldn’t have voted no on our electricity rebates, which help families and small businesses pay their energy bills, or threatened cancel our cost of living tax cuts. for middle Australia,” Dr Chalmers said.

“Inflation and unemployment were higher under the Liberals, business investment and productivity were weak, real wages were going backwards and there was debt, deficits and waste as far as the eye could see.”

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