The Council of Small Business Organisations (COSBOA) has recommended that legislative wage increases should be between 2-3% for this year’s determination.
The Australian Small and Family Business Ombudsman recently found in its Small Business Matters report that:
- 43 percent of small businesses were not making a profit
- The majority of small business owners were paying themselves below-average annual earnings
- The majority of small business owners (almost three-quarters) were working longer than the median of 39 hours per week
Australian small businesses face a critical cost-of-doing-business crisis, exacerbated by inflation and rising operational costs. This situation has led to a stark decrease in business confidence and an increase in insolvencies. Labor costs, especially in sectors like hospitality, are a significant burden, with legislative wage increases and migration policy changes further straining finances. The call for sustainable wage growth is emphasised, suggesting increases should align with productivity to ensure long-term viability. Recommendations include appointing a small business representative to the Fair Work Wage Determination Panel and urging the government to reduce compliance burdens and prioritise productivity enhancements.
