Small business stress surges as regulation and costs bite

Almost half of Australia’s small business owners are experiencing high stress levels, with many warning that red tape and rising costs are pushing them to the brink.

 The 2025 Small Business Conditions Survey from the Australian Chamber of Commerce and Industry (ACCI) and Intuit found 44% of owners report high stress, and about a third have considered closing in the past year. This underscores the need for better mental health support and simpler regulation.

 A further 30% worry their business won’t survive the next 12 months as pressure on small businesses escalates.

 Regulation is a major drag, with 42% saying it’s harming operations, and 61% spend more than $20,000 annually on compliance. Staffing also remains a challenge, with 35% struggling to hire or retain workers.

 ACCI chief executive Andrew McKellar says small businesses are “spending too much time tied up in regulation” instead of focusing on customers and growth. He’s calling for permanent tax incentives, including making the Instant Asset Write Off a fixture, and expanded apprenticeship funding.

 Despite the pressures, 82% of respondents remain confident about their future, driven more by resilience than stability. Encouragingly, 59% say AI and technology are already having a positive impact, with 62% expecting further benefits in the coming years.

 Intuit’s Suzy Nicoletti says small firms are embracing AI to cut admin and compliance burdens. “When we combine smart technology with smart policy, small businesses can focus on what they do best - serving customers and creating jobs.”

 

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