Small firms squeezed by rising costs and new regulations amid looming rate hike

Australia’s small-business sector is under pressure from both a tightening economic climate and a string of regulatory reforms such as the introduction of payday superannuation, a prohibition on debit and credit card surcharges, increased minimum and award wages, and changes to trust taxation. Credit-reporting firm CreditorWatch flagged that one in ten invoices were overdue by more than 60 days in September, the highest serious-arrears level since 2018, while more than half of invoices were paid late.

Builders like Steve Bright describe spending the majority of their time on compliance paperwork, and many have hired extra staff to manage the new obligations. Industry bodies warn the cumulative effect of these measures is eroding profitability, especially as fuel and transport costs rise and the Reserve Bank is expected to raise interest rates again. Surveys by accounting platforms MYOB and Xero show falling revenues and thin margins, particularly in retail and hospitality, where the surcharge ban has prompted price hikes. The government says it is delivering tax relief, including a permanent $20,000 instant asset write-off, to ease the burden.