TCCI releases findings of its Tasmanian Survey of Business Expectations

While the cost-of-living crisis is hurting the general public, businesses are feeling it too. Tasmania’s peak business body says more are ‘struggling to keep their heads above water’.

TCCI CEO Michael Bailey speaks to the media on Parliament Lawns in Hobart on Tuesday, November 7, 2023.

A new survey of Tasmanian business owners has found that rising costs are a significant concern for them.

The Tasmanian Chamber of Commerce and Industry (TCCI) has released its Survey of Business Expectations.

Rising insurance - which 76 per cent of survey respondents said was an issue - was the top concern for businesses, followed by employee, energy, and transport costs.

TCCI CEO Michael Bailey said rising costs were hurting businesses.

“Once again, the cost of doing business is the number one concern of our members, particularly insurance and staffing costs,” Mr Bailey said.

“Businesses are struggling to keep their heads above water with mounting costs. We can’t just keep pushing more and more costs onto our businesses and expect them to cope or be able to pass it on to customers.

“The cost-of-living crisis is not just hitting households; businesses are dealing with increasing prices too.

“Most concerningly, 80 per cent of Tasmanian businesses expected the cost of doing business to get either slightly worse or significantly worse over the next 12 months.

“This paints a pretty bleak picture of the realities of doing business in the current climate.”

Harry Badcock and Charlotte Grey with their son Freddie. Picture: Supplied.

Harry Badcock and his wife Charlotte Grey own the Burnie cafe Secret Buddha and run the Good Gumnuts music festival.

“There are way more increased costs than there were a couple of years ago,” Mr Badcock said.

“Bank processing fees are a big one; we cop a fairly sizeable bill every month, which does take a toll on us.

“It’s a bit tough. There’s only so much people are willing to pay for Egg Bennys.”

Mr Badcock said the issues with cost of living were not isolated to businesses.

“We need the local community to be not feeling that pressure so they can come in and support us and every local business.

“If the cost of living crisis gets under control, then it’ll get easier for businesses.”

Despite the challenges, Mr Badcock said running a small business was “definitely worth it”.

“We employ 15 staff, so it’s not just Charlotte and myself that benefit from it - 15 people are getting a paycheck from that place.

“That’s what’s worth it for us; what it does for the broader community.”

Of those surveyed by the TCCI, 35 per cent of respondents said the state government removing its duty on insurance would positively impact businesses.

The duty is a tax the Tasmanian government collects on specific insurance policies.

Treasurer and deputy premier, Michael Ferguson at the budget estimates in Parliament on Monday 23rd September 2024. Picture: Linda Higginson

Small Business and Minister Michael Ferguson said state revenues such as that duty were important for funding government services and departments.

“The Tasmanian Government is acutely aware of the challenges facing small businesses and is providing support and relief to this vital sector of the economy,” Mr Ferguson said.

“The Premier recently wrote to the Prime Minister requesting the federal government take action to ease the cost barrier of doing business by developing a national solution to the rising cost of insurance within the tourism, hospitality and small business sectors.”

Mr Ferguson said the state government financially supported Tasmanian businesses through various initiatives.

Tasmanian Chamber of Commerce and Industry Chair Wayne Davy and CEO, Michael Bailey with the TCCI's 100th birthday cake at Pigeon Whole Bakers in Hobart

On Sunday, Mr Bailey was also reappointed as the CEO of the TCCI, with the organisation’s Chair, Wayne Davy, saying the decision was easy.

“Michael really listens closely to the business community and then transforms that into powerful, meaningful advocacy on behalf of our members,” Mr Davy said.

“Michael led the business community response during the Covid pandemic, he has put business at the forefront of the most recent state and federal election campaigns, and he is leading the charge when it comes to tackling the cost of doing business in Tasmania and cutting through red tape that is holding the state back.”