South Australian businesses say confidence is improving, but high costs and weak profitability are still preventing growth, according to the South Australian Business Chamber/William Buck’s latest Survey of Business Expectations.
“Businesses are feeling slightly more positive than they were earlier this year, but the cost of doing business remains the biggest hurdle to growth,” said Andrew Kay, Chief Executive of the South Australian Business Chamber.
“Energy, insurance, wages and compliance costs continue to climb, while selling prices barely shift. That leaves profitability weak and investment decisions on hold.”
Businesses again identified the cost of doing business, profitability, and government policy and compliance as their top concerns, alongside skills shortages and soft demand. On tax reform, company tax and payroll tax remain the leading priorities for change.
“This survey makes it clear that South Australian businesses are taking a frugal approach on costs, with training, overtime and capital expenditure all in decline,” Kay said. “If governments want to unlock jobs and growth, payroll tax relief and cutting compliance burdens would be the fastest way to give businesses the confidence to spend.”
Kay believes the slight uptick in business sentiment is the result of recent cuts in interest rates. “Nearly two-thirds of businesses surveyed were expecting further rate cuts in 2025, following the February and May cuts they had experienced to date,” he said. “That expectation, as well as more certainty around the tariff environment than at the time of the previous survey, has restored a bit of confidence despite their day-to-day challenges.”
Following the federal focus on productivity at last week’s Economic Roundtable in Canberra, the survey indicates that productivity gains remain out of reach for many operators, who say rising compliance and operating costs are taking time and resources away from improving output. With a state election next March, the findings offer a timely pointer to the policy settings businesses believe can improve South Australia’s economic performance in the future.
Media Contact — Andrew Kay | akay@sabusinesschamber.com.au | 0439 009 590
