A new report by the Canberra Business Chamber shows there was little improvement in business conditions in the last quarter of 2024, and that the outlook for 2025 continues to be gloomy.

“The latest Canberra Business Beat report suggests that more than half of businesses did not hit their performance targets in the last quarter of the year, and a quarter are expecting their businesses to shrink over the next 12 months,” Greg Harford, Canberra Business Chamber Chief Executive said today. “This is bad news for the entire ACT community, because having successful and profitable local businesses are important to growing jobs and keeping the Territory economy moving forward.

“The single biggest issue impacting business is the increasing cost of doing business. This stems from continued high interest rates impacting the cost of debt, upwards pressure on wages, rents, rates and products. At the same, half are reporting reduced customer demand, creating a double whammy for many firms.

“Workers’ Compensation is a key cost impacting the business sector, with businesses footing the bill for ever higher insurance premiums. There is a real need to make sure that injured workers are looked after and can recover and get back to work, but premiums in the ACT are escalating at an alarming rate. We have been hearing anecdotally for some time that premiums here are much cheaper than in New South Wales, and the latest Canberra Business Beat Report confirms this. Businesses are reporting that, on average, premiums in the ACT are 47 per cent higher than just across the border in New South Wales. This is a significant cost difference, and the Chamber will be unpacking this further in its submission to the ACT Legislative Assembly’s Inquiry on insurance.

“In the survey, we also asked for opinions on the ease of doing business in the ACT. Nearly a third of firms which operate across state borders report that they think it is harder to do business here, with only 10 per cent saying it is easier. The Canberra Business Chamber believes it’s important that the ACT has a business-friendly environment that can help attract and retain business. Business is a good thing for the Territory as it creates jobs and drives the economy forward. Around two-thirds of working Canberrans are employed in the private sector, so it is really important that we get our policy settings right.”

-ENDS-

CBC Media Contact: Greg Harford, Chief Executive Officer
Mobile: 0423 357 066,
Email: greg.harford@canberrabusiness.com
CBC Office: 02 6247 4199