Amid global uncertainty, business and economic policy reform must be at the forefront of the Federal Election 

By Gabi Leverett

Queensland’s peak business body is calling on both major parties to put business and economic policy reform at the forefront of this weekend’s Federal Election as relentless, compounding and significant business pressures have pushed profitability to near historical lows. 

The state’s business community have raised escalating operating costs, workforce constraints, insurance affordability, tax complexity, inflation and the level of Federal Government regulation as major concerns impacting Australia’s economic environment. It all comes off the back of a challenging start to the year for Queenslanders with consecutive natural disasters. 

Business Chamber Queensland CEO Heidi Cooper says the high cost of doing business is compounding pressure on an already stretched and stressed business community. 

“Businesses consistently tell us that it’s hard to do business in Australia, amid the high cost of energy and insurance, a complex and multi-layered regulatory environment, disruption due to severe weather events, and broader macro-economic challenges such as tariff wars and Australian dollar depreciation. 

“The impact is a material and significant hit to businesses, with historically weak profitability now returned to levels not seen since the peak of the COVID economic crisis.  

“Despite these challenges, Queensland businesses are expressing some confidence in the future of both the state and national economies.  

“Businesses tell us their top opportunities are innovation through business-led research and development, major projects and the 2032 Olympic and Paralympic Games lead-up and legacy. 

“But right now, that optimism hasn’t been realised and actual conditions and business performance do not match. In fact, only about one in three businesses agree current economic policies in Australia are supportive of business growth.” 

Ms Cooper says going into the Federal Election, businesses are looking for strong economic policies and foreign relations as well as tangible improvements to their day-to-day operating environment and long-term business resilience. 

“Businesses want to see policies that encourage them to invest, expand and employ, but instead feel weighed down by the growing cost of day-to-day operations and managing workforces,” Ms Cooper said. 

“So far, we’ve seen varied commitments to business and economic policies from both parties – fringe benefits and instant asset write-off taxes, workplace and industrial relations policies, productivity, red tape and energy. 

“All these issues are among the highest priorities for Queensland businesses ahead of this election, but they’re also looking for a robust government strategy that aligns economic and social policy to address business challenges experienced across the country, strengthen business capability and secure opportunities for growth and innovation.” 

Australian businesses are in a unique position to benefit from forward economic opportunities, with the 2032 Olympic and Paralympic Games, increased global demand for Australian-made goods and products in a variety of foreign markets, the energy transition and nation-wide infrastructure investment presenting significant opportunity for business involvement and benefit. 

Business Chamber Queensland data shows Olympics preparation and legacy benefits and the subsequent economic outcomes from population growth, infrastructure build, and global trade are among their most valued national business opportunities. 

Ms Cooper says to realise the true value of these opportunities, business needs a reduction in regulatory burden, space to innovate, an increase in productivity and resilience, and an improved operating environment.   

“With election day fast approaching, the Queensland business community is looking for a government that prioritises business and sets policy which will enable them to realise the hope they have in the future of the nation’s economy,” Ms Cooper said.  

“It is essential that business is put at the centre of this federal election and is a priority for the next Australian Government.” 

Additional data points: 

• Among the top election issues for Queensland businesses were inflation (ranked first by 72.87%), interest rates (ranked second by 66.92%) and broader community issues like crime, mental health and housing (ranked third by 62.65%), which have a material impact on business owners and their workforces. 

• More than half of all Queensland businesses flagged insurance affordability as a major or critical concern (50.76%) when thinking about Australia’s current economic situation. A related major or critical concern was insurance accessibility and choice (46.92%). 

• Another pair of major or critical concerns for around half of Queensland businesses were levels of regulation (48.15%) and tax (46.46%). 

• More than 40% of businesses (42.81%) highlighted housing accessibility and affordability as a major or critical concern. 

• Almost half of businesses surveyed (49.92%) agreed the Federal Government should expand joint state and federal disaster recovery funding arrangements. 

• Top opportunities for Queensland businesses were innovation through business-led research and development (73.58%), major projects (67.74%) and the 2032 Olympic and Paralympic Games lead-up and legacy (64.52%). 

• Strong support went to major projects in energy (ranked first by 73.38%), Bruce Highway upgrades (ranked second by 73.38%) and water (ranked third by 68.02%), expected to benefit Queensland businesses from procurement opportunities through to improved infrastructure. 

• Less than half of businesses (48.64%) either disagreed or strongly disagreed it was easy to procure from government and government understand business needs.  

• Less than one in three (28.27%) businesses agree that the current taxation system in Australia is fair and supportive of businesses.