NSW businesses need more government relief as a new survey shows confidence is plunging amid plans to freeze or cut jobs.
Business NSW says its latest Business Conditions Survey reveals a sharp plunge in confidence statewide, driven by weaker demand, rising costs and global uncertainty.
Confidence fell for a third consecutive quarter to –78.0, below the September 2021 lockdown of –75.5, it says.
On hiring, 29% of survey respondents expect to reduce staff in the next three months compared to 8% wanting to hire (the weakest since February 2023), says the advocacy body.
Formerly the NSW Business Chamber, Business NSW represents
almost 50,000 businesses and has done so since 1826.
BUSINESSES SURVEYED
Business NSW CEO Daniel Hunter says the results are a wake-up call ahead of the State Budget which comes out on June 23.
“NSW is the best state in Australia to do business – the challenge is keeping it that way,” he says.
“Workers’ compensation reform showed governments can take practical steps to reduce business costs,” he says.
“The next priorities must be payroll tax relief, scrapping the Emergency Services Levy and continuing to cut red tape for small businesses seeking government work.”
Hunter says businesses have major concerns about proposed federal tax reforms, including capital gains tax settings and discretionary trust arrangements.
He claims the changes risk undermining investment, succession planning and long-term growth.
“The last thing businesses need is additional tax uncertainty when confidence is already at record lows,” Hunter says.
TOP CONCERNS
Taxes, levies and government charges are now the top cost concernS for businesses, overtaking insurance for the first time.
The survey also shows there has been widespread impact from global oil price shocks sparked by war in Iran; 96% of business respondents reported effects across fuel, freight, supply chains and demand.
Financial pressure is also intensifying as nearly half of businesses reported reduced income, more than a third are drawing on savings and almost one in five considering permanent closure.
WHAT THEY WANT
Business NSW is calling for:
payroll tax relief (including a cut in the rate from 5.45% to sub-5% and a rise in the threshold above $1.2 million.
scrapping the Emergency Services Levy, which they say adds at least 23% to general business insurance premiums.
reduce red tape and improve SME access to government contracts.
funding for the Business Connect 2.0 program to double to $20m per year.
a ‘fairer’ share of federal GST revenue for NSW.
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