‘Terribly frightening’: NSW small businesses on the brink

“That’s a terribly frightening statistic,” said David Harding, executive director of Business NSW, which conducted the research among 900 owners.Losing anything like that number of businesses would be economically devastating — the state’s small enterprises contribute about one-tenth of the nation’s GDP.“It’s time to start pulling on the reform levers,” Mr Harding said.Business NSW is imploring the Perrottet Coalition government and Minns Labor opposition to show they are serious about easing pressure by promising to deliver more natural gas, lower payroll tax, strengthen the state’s critical goods manufacturing capacity and increase government purchasing done through smaller providers. “There are a whole load of things that a smart government could do just to make it easier for businesses in NSW,” Mr Harding said.Power prices are the single-biggest pain point.“We have bundled up gas and coal in the bad bucket,” Mr Harding said. “We need to ensure that we have a stable energy supply underpinned by secure and realistically priced domestic gas.”Insurance is the close behind energy.Business NSW argues a “root and branch” review of the local market is needed, as premium hikes outpace general inflation year after year.“The really worrying thing is that business will start operating without insurance,” Mr Harding said.Rising expenses are undermining the viability of many operators, said Council of Small Business Organisations Australia chairman Matthew Addison, because the cannot be passed on in full without losing customers.“The margins being derived by businesses are shrinking at the moment,” Mr Addison told The Telegraph. He said some traders were facing wage hikes of 20 per cent.“It’s putting more pressure on the bottom line,” COSBOA’s Mr Addison said.Business Western Sydney executive director David Borger joined with Business NSW in calling for a cut to payroll tax.“That’s one of the ways that government can reduce the cost of business,” Mr Borger told The Telegraph. “Having a tax on jobs makes no sense.”He also supported the push for increased state support for start-ups and extra medium-density, affordable housing in Sydney, as New Zealand’s politicians agreed to do in 2021 in a rate bipartisan decision.Childcare centre owner Nicky Upfold said she was finding it harder and harder to attract staff to sites at Artarmon and Lane Cove.“None of them can afford to live round here,” Ms Upfold said. “All the local schools are starting to suffer from it as well, as well as police and fire stations.”She also said that the prospect of having to payroll tax was an obstacle to expanding the business. “I just feel there are just so many barriers,” Ms Upfold said.Another was the English language testing that stood in the way of employing childcare workers from overseas. Three-quarters of Australian-born and educated people couldn’t achieve the required score, she said.“They want to work with our children but we can’t employ them because we have this level of red tape and we can’t get government to listen,” Ms Upfold said. Business NSW’s Mr Harding said: “In that case government needs to get out of the way. The best judge of who can make a great employee is the employer.”Catering business owner Russell Radcliffe said he would close down, if he felt he could.Rising costs for rent, meat, transport, staff and power have decimated his business. DT app download info factboxAnd his customers aren’t prepared to accept higher prices. After paying his employees — and ever-increasing home-loan instalments — there isn’t enough to keep the tax man happy. He has run up a $100,000 debt.“I would close my doors if I could and go get a job,” he said.That would mean having to declare bankruptcy, “which is pretty ugly”.“I feel alone,” Mr Radcliffe said. “I feel that the only way through it is to work.”

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January 31, 2023 at 12:01AM
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“That’s a terribly frightening statistic,” said David Harding, executive director of Business NSW, which conducted the research among 900 owners.Losing anything like that number of businesses would be economically devastating — the state’s small enterprises contribute about one-tenth of the nation’s GDP.“It’s time to start pulling on the reform levers,” Mr Harding said.Business NSW is imploring the Perrottet Coalition government and Minns Labor opposition to show they are serious about easing pressure by promising to deliver more natural gas, lower payroll tax, strengthen the state’s critical goods manufacturing capacity and increase government purchasing done through smaller providers. “There are a whole load of things that a smart government could do just to make it easier for businesses in NSW,” Mr Harding said.Power prices are the single-biggest pain point.“We have bundled up gas and coal in the bad bucket,” Mr Harding said. “We need to ensure that we have a stable energy supply underpinned by secure and realistically priced domestic gas.”Insurance is the close behind energy.Business NSW argues a “root and branch” review of the local market is needed, as premium hikes outpace general inflation year after year.“The really worrying thing is that business will start operating without insurance,” Mr Harding said.Rising expenses are undermining the viability of many operators, said Council of Small Business Organisations Australia chairman Matthew Addison, because the cannot be passed on in full without losing customers.“The margins being derived by businesses are shrinking at the moment,” Mr Addison told The Telegraph. He said some traders were facing wage hikes of 20 per cent.“It’s putting more pressure on the bottom line,” COSBOA’s Mr Addison said.Business Western Sydney executive director David Borger joined with Business NSW in calling for a cut to payroll tax.“That’s one of the ways that government can reduce the cost of business,” Mr Borger told The Telegraph. “Having a tax on jobs makes no sense.”He also supported the push for increased state support for start-ups and extra medium-density, affordable housing in Sydney, as New Zealand’s politicians agreed to do in 2021 in a rate bipartisan decision.Childcare centre owner Nicky Upfold said she was finding it harder and harder to attract staff to sites at Artarmon and Lane Cove.“None of them can afford to live round here,” Ms Upfold said. “All the local schools are starting to suffer from it as well, as well as police and fire stations.”She also said that the prospect of having to payroll tax was an obstacle to expanding the business. “I just feel there are just so many barriers,” Ms Upfold said.Another was the English language testing that stood in the way of employing childcare workers from overseas. Three-quarters of Australian-born and educated people couldn’t achieve the required score, she said.“They want to work with our children but we can’t employ them because we have this level of red tape and we can’t get government to listen,” Ms Upfold said. Business NSW’s Mr Harding said: “In that case government needs to get out of the way. The best judge of who can make a great employee is the employer.”Catering business owner Russell Radcliffe said he would close down, if he felt he could.Rising costs for rent, meat, transport, staff and power have decimated his business. DT app download info factboxAnd his customers aren’t prepared to accept higher prices. After paying his employees — and ever-increasing home-loan instalments — there isn’t enough to keep the tax man happy. He has run up a $100,000 debt.“I would close my doors if I could and go get a job,” he said.That would mean having to declare bankruptcy, “which is pretty ugly”.“I feel alone,” Mr Radcliffe said. “I feel that the only way through it is to work.”