New federal workplace laws introduced today come amid declining business confidence and falling consumer demand.
The state’s peak business organisation, Business NSW, says the new right to disconnect laws – as well as changes to casual employment and independent contract rules – have arrived at a challenging time for small and medium businesses.
Businesses across NSW are experiencing challenges that are leading to decline in business confidence.
The most comprehensive temperature check of NSW’s business conditions – the Business Conditions Survey – reveals business confidence has declined for the second straight quarter, dropping from -59.7 to -67.8 for NSW.
“While Business confidence in NSW has declined for the second straight quarter, this is the first drop for the New England Northwest (-31.3 to 59.5) which does indicate that businesses across the region are finding is tough,” Business NSW Regional Director for NENW Diane Gray said.
“Businesses are feeling the financial pinch with the consistent rise in the cost of doing business which is compounded by the Federal Government’s ‘closing loopholes’ legislation. These laws are burdening business with more red tape and costly compliance that our regional businesses do not need.”
“While small businesses (with less than 15 employees) have another year before the right to disconnect come into effect for them, many businesses in the region are already engaging a flexible approach to work hours. One example is fitting in with school pick-up and drops-off times. This ‘give-and-take’ approach is showing dividends for employers and employees, particularly in light of the current tight labour market and the childcare demands on families,” Ms Gray said.
“These types of approaches will no doubt support how and when employees and employers manage the right to disconnect, which medium and large businesses can be facing now because under the new laws, contacting someone after hours is now considered problematic – even if someone’s traditional workday has already had those family friendly allowances factored in.”
“It is important for flexibility in the workplace to cut both ways.”
Key findings from the Business Conditions Survey for NSW:
- The Business Confidence Index has declined for the second straight quarter, dropping from -59.7 to -67.8;
- 38% of businesses say taxes and government charges are the biggest barriers to business expansion;
- 67% of the businesses say the cost of doing business is the biggest barrier to business expansion;
- More than 90% of businesses have experienced an increase in general insurance costs in the last 12 months, the majority of which reported an increase of between 11% and 30%;
- 81% of businesses say high freight costs as their biggest supply chain issue;
- 43% of businesses have sought a new energy deal in the last 12 months;
- 64% of businesses have identified barriers to winning government contracts, with the most common barrier being the high cost or time involved in preparing applications (33%); and
- Only 45% of small businesses surveyed have accessed the instant asset write-off scheme and got some benefits from it.
Key findings from the Business Conditions Survey for New England North West:
- The Business Confidence Index has declined for the first time, dropping from -31.3.7 to -59.4;
- 33% of businesses say taxes and government charges are the biggest barriers to business expansion;
- 50% of the businesses say the cost of doing business and 48% say skill shortages are the biggest barriers to business expansion;
- More than 90% of businesses have experienced an increase in general insurance costs in the last 12 months, the majority of which reported an increase of between 11% and 30%;
- 81% of businesses say high freight costs as their biggest supply chain issue;
- 50% of businesses have sought a new energy deal in the last 12 months;
- 67% of businesses have identified barriers to winning government contracts, with the most common barrier being the high cost or time involved in preparing applications (45%); and
- Only 41% of small businesses surveyed have accessed the instant asset write-off scheme and got some benefits from it.
About Business NSW Formerly the NSW Business Chamber, Business NSW is the peak policy and advocacy body which has been representing businesses in NSW since 1826. We represent almost 50,000 businesses.
MEDIA CONTACT: DIANE GRAY – 0491 337 428
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