Rising Cost of Living Placing Extra Burdens on Businesses Already Trying to Stay Afloat

Published May 11, 2022 (last updated June 16, 2022) [email protected]

Governments are being urged to seriously consider aiding Small-Medium Enterprises (SME’s), following the detrimental impacts the COVID19 pandemic has had on rising business costs.

Employing 41% of Australia’s Workforce, SME’s play a crucial role with their contributions to the national economy.

In Sunday’s televised Leaders Debate, Prime Minister Scott Morrison assured viewers, “Our plan delivers another one point three million jobs. Four hundred thousand more small businesses. Investments in the skills and infrastructure that Australians need to grow.” Morrison said.

Employsure CEO, David Price commented “What about already existing businesses?”

The Australian Bureau of Statistics (ABS) reports more than half (57%) of all businesses across the country have seen an increase in costs over the past three months, with 52% not passing these costs onto consumers.

The price of automotive fuel rose by 11%, largely due to unrest in Ukraine. Education and Training was another area hit hard, with a 6.4% increase to the cost of tertiary education. These factors alone have placed extra burden on operational expenses.

Health, Safety and Legal compliance costs have increased significantly over the past two years, with many SMEs doing their best to stay informed and ahead of regulations.

Adapting to the COVID climate has meant a period of transition, growth, and innovation for some business owners. Whilst the opportunity for new business was created between 2020- 2021, there remains a 12.0% exit rate, or 277 674 exits from the sector, according to ABS statistics.

“The best protection you have against rising cost of living is your job and having security in your job and being in a growing economy where you have more choices.” Scott Morrison said during the debate. “A job is what gives Australian’s security to deal with rising costs and rising pressures on interest rates which as a result of the Australian economy, springing back to life and leading the world.”

The day after early voting opened for the Federal Election, Employsure wish to remind aspiring governments, one of the best ways to ensure the employment rates keep climbing, is to look after the businesses and jobs that already exist.

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