The State Government is against us, South Australian small and medium businesses say

SOUTH Australia’s small and medium businesses are disillusioned with the policies of the State Government which they say work against their interests, according to a new survey.

SOUTH Australia’s small and medium businesses are disillusioned with the policies of the State Government which they say work against their interests, according to a new survey.

The Sensis Business Index for the June quarter, released today, also finds that business confidence in SA has declined to the point where only those in the NT feel less confident.

The results come as a blow to the State Government, particularly Treasurer Tom Koutsantonis who revelled in the findings of CommSec’s latest State of the States report.

Released on Monday, the report found business investment in SA increased by the highest amount — albeit from a low base — in the nation during the March quarter.

“The (big) banks have egg on their face here — according to their own reports investment and business confidence is strong in SA,” Mr Koutsantonis said this week.

However, another report released yesterday — the NAB June quarterly SME survey — reported a fall in business confidence in SA. The decline has positioned SA as the only state where business confidence is in negative territory.

Similarly, the Sensis survey of 125 SA businesses and 1000 nationally, found a fall of four points in SA business confidence to plus-26.

SA currently sits 13 points below the national average, ahead of only the NT, and three points lower than this time last year.

“The confident (SA) businesses are those that are well established, with strong foundations, whereas those who are worried pointed to falling sales and an unfavourable business environment,” Sensis executive general manager James Ciuffetelli said.

UNHAPPY: While South Australian Treasurer Tom Koutsantonis was all smiles when arriving to deliver the State Budget in June, the same can’t be said for local small and medium business operators. Picture: AAP/Ben MacMahon.

The Sensis survey also found just 7 per cent of SA businesses felt State Government policies supported them, compared to 44 per cent that felt they worked against their interests.

The net score of minus-37 was down 16 points this quarter — the only Government to see its approval rating go backwards — and the lowest result in almost three years.

“Businesses are concerned there is too much bureaucracy and taxation is too high, while those in regional areas feel neglected,” Mr Ciuffetelli said.

Support in SA for the Federal Government’s policies rose nine points to plus-1, which despite the increase is the equal lowest result nationally.

The survey was taken before the June 22 State Budget, where Mr Koutsantonis revealed plans for a levy against the big banks that he said would raise $370 million over four years.

An often heated debate has raged since as to whether the levy, which the Opposition has vowed to block, would deter investment in the state.

Sensis found 15 per cent of SMEs think the economy is growing, versus 23 per cent that believe it is slowing.

Positively, NAB recorded improved business conditions for SA SMEs, bringing it in line with the national average.

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