Jobs on chopping board, Business NSW says

Hiring plans have taken a back seat for many NSW businesses that are struggling with taxes, levies, government charges, and the impacts of global oil price shocks linked to the conflict in the Middle East.

In the weakest figures since February 2023, twenty-nine per cent of NSW businesses reported they expect to reduce their staff numbers within the next three months, and just 8 per cent plan to hire.

Weaker demands, rising costs, and global uncertainty have also contributed to yet another sharp drop in corporate confidence, according to Business NSW’s latest Business Conditions Survey.

That confidence is currently ranked at -78.0, well below the -75.5 that was recorded during the 2021 lockdown trough.

Business NSW CEO Daniel Hunter said this was a wake-up call.

“NSW is the best state in Australia to do business – the challenge is keeping it that way,” Hunter said in a statement.

“Workers’ compensation reforms showed governments can take practical steps to reduce business costs. The next priorities must be payroll tax relief, scrapping the Emergency Services Levy and continuing to cut red tape for small businesses seeking government work.”

The survey also identified that taxes, levies, and government charges are a top concern for businesses, overtaking insurance for the first time.

The conflict in the Middle East and the resulting global oil price shocks have businesses concerned, with 96 per cent of respondents reporting effects across fuel, freight, supply chains, and demand.

Nearly half of businesses reported reduced income, more than a third are drawing on savings, and about one in five are considering closing.

Hunter said these businesses also have major concerns about proposed federal tax reforms, including capital gains tax settings and discretionary trust arrangements.

“The last thing businesses need is additional tax uncertainty when confidence is already at record lows,” Hunter said.

Ahead of the NSW state budget, due on 23 June, Business NSW has called for payroll relief, further procurement reforms, a stronger Business Connect 2.0 program, and a fairer share of federal GST revenue.

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