Queensland businesses have set their priorities ahead of the 2024 State, setting the challenge for the next Queensland Government to deliver policies and outcomes that improve the business environment, stimulate economic growth and enable the private sector.
Six weeks from polling day, Business Chamber Queensland today released the 2024 State Election Business Blueprint, collating insight from thousands of businesses across the state and putting practical recommendations at the forefront of the debate in the lead-up to the October state election.
The chamber’s independent data shows just 6% of businesses we surveyed agree the State Government is planning for their long-term economic future.
“The 2024 State Election is the chance for genuine business policy reform,” CEO Heidi Cooper said
“Policy reform must be based on a solid economic strategy and long-term planning, to give businesses relief from compounding pressures of today and clarity on how they can benefit from Queensland’s economic future.
Business Chamber Queensland’s 2024 State Election Business Blueprint provides actionable recommendations for positive business policy for the next Queensland Government.
These recommendations are constructive solutions designed to improve the business environment in Queensland.
“Thousands of businesses, local chambers of commerce and industry leaders took part in our business election research – from responding to our election survey, engaging in our in-person consultations across the state and sharing their insight in our research over the past months,” Ms Cooper said.
Throughout the research, 75 essential business topics were put to Queensland businesses to test sentiment. All these issues are compounding to have significant impacts on business.
Among these pressures are historically high wage costs, escalating energy costs, low productivity and increasing regulatory burden along with significant macro issues around inflation and interest rates.
The top 20 issues businesses identified were ranked very closely, with 17 issues representing a critical concern for Queensland businesses.
“Businesses told us they want to take part in long-term economic opportunities, but they’re facing significant head winds every day,” Ms Cooper said.
“We’re seeing the longest sustained period of low business confidence in the past 30 years,” Ms Cooper said.
“Persistent day-to-day business pressure are compounded with equally persistent macroeconomic challenges to create a tough business environment in Queensland.
More than 80% of businesses are concerned about inflation, while more than two thirds have major or critical concerns about interest rates.
Businesses also raised concerns about declining productivity with nearly three quarters of businesses expressing concern about the impact of the current workplace relations system on labour productivity and 67% holding major concerns about the level of economic productivity in Queensland.
Restrictive and inefficient regulation also features at the top of businesses list of issues with more than three quarters of businesses raising concerns about the level of government regulation which is hindering their ability to run their businesses.
“The result of the current environment is businesses are working harder but not seeing the productivity or profitability gains to match,” Ms Cooper said.
“It is critical policymakers and all parts of government actively reduce restraints and barriers to business and support businesses’ participation in future economic activity.
“Across the state, the private sector is best placed to be involved in and benefit from the growth we will see from the Olympic and Paralympic Games, increased global demand for Queensland made goods and services, the energy transition and the Big Build.”
Close to 90% of businesses agree a proportion of this work must come from local businesses and more than three quarters of businesses agree the regions must benefit from the Olympics.
“There is now an opportunity for meaningful policy reform, to allow businesses to participate in and benefit from the wider domestic and global economy in the immediate and long-term,” Ms Cooper said.
“The challenge – and opportunity – for the next Queensland Government is to deliver policies and outcomes that stimulate economic growth and enable the private sector.
“This election we must back Queensland businesses so they can continue to be the lifeblood of our economy and the heart of our communities.”
Business insight | Story
Flour and Chocolate Patisserie owner Kylie Scott said insurance, rent and electricity costs were her policy reform priorities.
Heidi Cooper and Kylie Scott at Parliament House
“I don’t think the government knows the dire situation a lot of small businesses are in at the moment, especially in the hospitality industry. Business owners are the people who keep a large part of the community going,” Ms Scott said.
Kylie said the business had faced significant cost increases across the operations, including a 35% increase in chocolate prices. It’s a cost the business needs to pass on.
“Small businesses are just trying to keep their head above water and keep the doors open,” Kylie said.
“Payroll tax is another significant cost, and another pressure coming from government, another expense on top of everything else.”
She said barriers to access support often meant they went without.
“The obstacles are so high. I don’t have time to find out how to access help. It’s really no help at all,” Ms Scott said.
“Government needs to actually take action, it’s all words. We don’t see the help, we don’t see the support. The last few months have been a kick in the teeth and we are at breaking point.”
Kylie and her husband Lachlan employ more than 80 people at the family business at Morningside, Northgate and Redcliffe, which they started 13 years ago.
“We are trying to be optimistic. We still want to be here, we still want to be operating, serving our customers and growing our business,” Kylie said.
“At the moment we’ve had to press stop and restart, and go back to what our values were 13 years ago. We just don’t have the financial capacity to move ahead at the moment.”
What businesses told us: The challenges:
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- Only 6% of respondents say the Queensland Government is planning for their businesses’ long-term economic future
- 95.4% of respondents are not satisfied with the level of government support
- Only 5.3% of businesses say Queensland’s current economic policies support their business growth
- 64.4% of businesses have major or critical concerns about interest rates and the cost of finance
- 67.5% have major or critical concern about the level of productivity in the Queensland economy
- 80.7% have major or critical concern about inflation
- 77.2% of businesses are concerned about energy costs
- 62.7% have major or critical concerns about transport costs
- 46.5% are concerned about telecommunications costs
- 41.3% of businesses have major or critical concerns about water costs
- 55.8% of businesses have major or critical concern about regulatory compliance
- 77.3% are concerned about the level of government regulation
- Only 4% agree it’s easy to procure to government
- 67.5% of businesses have major or critical concerns about the level of productivity in the Queensland economy
- 67.3% of businesses have major or critical concerns about recruiting employees with appropriate skills
- 57.6% are concerned about retaining skilled employees
- 60.1% respondents have a major or critical concern about the overall complexity of the state tax system and payroll tax specifically
- 60.9% of respondents agree or strongly agree the current state of the Queensland economy is reducing their business’s capacity and interest to employ new apprentices and trainees.
- 63.2% of businesses have major or critical concerns about housing accessibility and affordability which limits their ability to employ staff
- 43.2% of respondents have major or critical concern about access to adequate transport infrastructure
- Telecommunications infrastructure is a major or critical concern for 45.6% of respondents
What businesses told us: The opportunities
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- 77.1% of respondents agree it is important the regions benefit from the Olympics
- Only 18.3% say they are confident their business can benefit from the Olympics
- 86.8% of respondents agree or strongly agree the State Government’s big build infrastructure plan should commit to ensuring a proportion of work supplied should come from local Queensland businesses.
