2013 “another tough slog” for Australian business

Stephen Cartwright, CEO of the NSW Business Chamber, sums up what most of us already know: 2012 has been a tough year for the NSW business community.

“The NSW Business Chamber Business Conditions Survey has revealed, throughout 2012, that it’s been a very hard year for our entrepreneurs, with key indicators returning to near GFC levels,” Cartwright said.

“While we’ve seen some positive reforms from the NSW Government to reduce the burden of running a business and employing Australians, it feels as if the federal government has taken the opposite approach by introducing new taxes and regulations.”

And it looks like 2013 won’t offer much of a reprieve, Cartwright says.

“2013 looks like it’s shaping up as another tough slog for Australian businesses, with no indication the international economy will improve dramatically or that we will see any pressure taken off the high Australian dollar.

“The only silver lining may be further reductions in interest rates, but the benefit of those cuts will depend on the major banks passing on the full savings to their business and mortgage customers.”

Cartwright said that it’s becoming increasingly clear that “the boom times are over” and business operators will need to adapt to this reality.

The small and medium business community employs around 7 million Australians, Cartwright said - 40 times more than the mining industry. He suggested the sector could use its numbers to exert influence over government to improve the situation for NSW businesses.

“As part of a united national Chamber movement, in 2013 we will be taking an active role in a federal election campaign, making sure those who are asking for our votes understand the importance of this sector to the Australian economy.”

Cartwright said the Chamber is developing a proposal for an overhaul of the NSW post-year 10 education system to set children up with the right skills for careers that don’t involve university degrees.

He also called for the NSW Government to increase the pace of reform in 2013, including outlining a stronger strategy for the state’s electricity assets. The ‘poles and wires’, in particular, need reconsideration as they tie up investment capital that could be better used to accelerate other projects.

The full NSW Business Chamber Business Conditions Survey is available here.

Originally published here.