Over the past couple of years, we’ve all felt the pinch, from rising inflation to soaring insurance costs and the very real threat of job cuts. While the latest NSW Budget shows some progress, many small businesses like yours still face serious challenges. I want to share my thoughts on what’s happening, what’s missing, and what we’re pushing for on your behalf. 

Budget progress, but challenges remain

Two years ago, we were staring down 6% inflation and rising cost-of-living pressures. Last month’s NSW Budget brought some good news: inflation is easing, unemployment remains low, and the deficit is shrinking. But economic growth is expected to slow to just 1.75% next year, which isn’t nearly enough to keep NSW competitive or your business thriving. 

Three costs eating into your bottom line

Three costs continue to quietly chip away at your growth and profitability: 

1. Payroll tax: It punishes every new hire. Without raising the threshold or introducing regional relief, many of you will struggle to invest in your workforce and grow. We’ve been calling for a lift in the threshold to about $1.5 million, as well as tiered rates or regional concessions to give small businesses the breathing room to grow.

2. Workers’ compensation: Workers’ comp costs have ballooned, pushing total insurance expenses up by billions. That’s money that could be spend on fuelling innovation and jobs instead. The scheme’s liabilities have blown out by $2.6 billion, and that’s without factoring in the premium hikes that are on the way unless long-overdue reforms are passed. 

3. Emergency Services Levy: Currently embedded in insurance premiums, it drives costs higher and adds confusion. Moving this to a broad-based property charge, like other states have done, would lower premiums and give you transparency about where your money’s going. 

What we’re calling for

We welcome the government’s plan to establish an Investment Delivery Authority to cut red tape and fast-track major projects. But unless they tackle these cost barriers, many businesses will remain stuck.

With the next Budget being the last in this political cycle, NSW has a rare chance to deliver real reform. 

We’re urging the government to: 

• lower the payroll tax burden 
• overhaul workers’ compensation, and 
• fix the Emergency Services Levy. 

Looking ahead

Together, these reforms will unlock growth, protect jobs, and make NSW the best place to run and grow a business. Now is the time to move from cautious optimism to bold action – and we’re committed to pushing for change on your behalf.

Thank you for your ongoing support.