COSBOA calls for leniency as fuel cost pressures bite for small businesses

COSBOA has called on policymakers and debt collectors to take a supportive, lenient approach to small businesses as the fuel crisis bites.

Rising fuel costs are hitting small businesses at a time when they’re already under strain, the Council of Small Business Organisations Australia (COSBOA) has warned.

Speaking to HR Leader, COSBOA CEO Skye Cappuccio called on policymakers and debt collectors to consider adopting a more lenient approach to small businesses as the fuel crisis unfolded.

“Fuel costs are adding to an already high-pressure environment for small businesses. For many small businesses, it’s not just this one shock. It’s actually a cumulative issue,” she said.

“Small businesses are obviously resilient, but they can’t absorb these ongoing cost increases indefinitely.”

Small fuel hikes could have direct consequences for businesses’ daily operations, especially for those operating on tight margins, Cappuccio said. She added that many small businesses were already under pressure from rising costs in other areas.

“Fuel is one part of a bigger picture. Small businesses are already managing rising energy, insurance, wage and compliance costs,” she said.

“When these pressures combine, it reduces the ability of businesses to absorb shocks, delays investment, and places further strain on viability.”

To support small businesses as they grappled with rising fuel costs, Cappuccio urged debt recovery agencies to consider shifting to a more lenient approach. Direct and targeted government support could also be necessary if the crisis were to drag on, she added.

“We encourage banks and the ATO to take a practical and proportionate approach to recovery to help ensure small businesses can maintain cash flow,” Cappuccio said.

“If volatility persists, targeted and time-limited support may be needed to help businesses manage sudden cost increases.”

She also said business leaders would need access to clear, timely information regarding the fuel crisis to respond to rapidly evolving conditions.

“Small businesses need as much insight as possible into fuel supply and market conditions so they can plan and make informed decisions,” Cappuccio said.

As a longer-term measure, COSBOA added that it would support productivity-boosting policy measures to simplify compliance and boost investment.

“It is critical we remain focused on the policy settings that support small-business productivity, including reducing the cost of doing business, simplifying compliance, and enabling investment,” Cappuccio said.

“Measures that support investment in more efficient vehicles, equipment, and technology will help small businesses reduce their exposure to future shocks over time.”