Tasmanian businesses are feeling the pinch from rising costs, with a new survey revealing that over 80% expect their expenses to increase in the next 12 months.
The Tasmanian Survey of Business Expectations, conducted by the Tasmanian Chamber of Commerce and Industry (TCCI), found that the cost of doing business is the top concern for members.
TCCI chief executive Michael Bailey said businesses are struggling to stay afloat amidst mounting costs, particularly in the areas of insurance and staffing.
“We can’t just keep pushing more and more costs onto our businesses and expect them to cope or be able to pass it on to customers,” Bailey said.
“The cost-of-living crisis is not just hitting households, businesses are dealing with increasing prices too.”
According to the survey, 52% of businesses believe the Tasmanian economy will weaken over the next 12 months, up from 51% in the previous quarter.
Meanwhile, only 16% expect the economy to strengthen, a slight increase from 13% last quarter.
The survey also highlighted specific concerns, with 76% of businesses citing insurance costs as a major issue, 66% employee costs, 57% energy costs, 39% transport costs and 27% state taxes.
44% of businesses are currently paying insurance premiums between $10,000 and $50,000, while 10% are shelling out over $250,000 annually.
35% of respondents said that removing the state government duty on insurance would have a significant impact on their business.
But Small Business Minister Michael Ferguson said the duty is crucial for funding government services.
“Small businesses are the engine room of the Tasmanian economy and that’s why the Tasmanian Government is backing them to the hilt,” he said, announcing the second round of a grants program.
“The $1 million Enabling Business Grant Program will deliver grants between $2,500 and $10,000 for capital purchases such as machinery, electronic payment terminals and computers.”
“By working with our businesses to invest in their own success, we are seeing Tasmanian businesses continually have the highest survival rate in Australia, with 66.6% … that were operating in June 2020 still operating in June 2024.”
