Small businesses are literally the backbone of our economy, accounting for 97.2% of all businesses, which is why each of us will probably interact with one on a daily basis.
Yet they are now grappling with unprecedented challenges as Labor imposes heavy regulations and continues to mismanage our economy.
Recent data from ASIC reveals that 11,053 firms became insolvent in 2023-24, marking a total of 22,800 insolvencies since Labor came to power in 2022.
Industries that have been hit the hardest are those dominated by the small business owner, from the tradie, community pharmacy to the cafe owner. It is even more alarming that industries where women lead the way are being hit the hardest.
I recently spoke with a hospitality business owner who shared that their energy costs were now a staggering $30,000 a month. Many owners express feelings of helplessness, worried about how they will sustain their operations in the long term while facing such relentless financial pressures.
This Labor government is completely out of touch with the needs of small business. Working even longer hours but with declining productivity, record numbers of business owners are now reaching the tipping point of no longer being viable. But fear not, this government has invested $23m in the Cyber Wardens initiative, though probably not much use when you no longer have a business to protect. Australians need and deserve a government that can manage the economy.
From diminishing returns, business owners must cover wages, taxes, supplier payments, and other operational expenses. With cash flow being so tight, many business owners have to prioritise keeping their business afloat rather than paying themselves so they can continue to provide jobs and products and services to their local community.
It also impacts small business owners’ ability to support their own families, including meeting mortgage payments.
It’s a dire situation that underscores that Labor doesn’t care about the small business community; their actions during this term of “hard Labor” have made that clear. In contrast, Liberals, as part of the federal coalition, will continue to fight for Australian small businesses.
Maria Kovacic is Liberal senator for NSW
