Townsville Chamber of Commerce CEO Heidi Turner shares her concerns for small to medium sized businesses in our region.
“The number of businesses appointing administrators has surged over the past 12 months, hitting a record high of 1,131 in March. The first time since 2015 that insolvencies in Australia have risen above 1,000 per month, a 26% increase on the same time last year,” explains Heidi.
“During our April meeting with the Reserve Bank, insolvency data highlighted that construction and businesses that rely on discretionary spending, such as hospitality and the arts, are the hardest hit. Are these sectors the canary in the coal mine? With decreased discretionary spending and increased costs across the board, business operators are caught in an increasingly challenging environment.
“The stress and strain faced by SMEs was acknowledged in the Federal budget with investments in mental health and financial counselling, plus a $325 energy rebate. However, many of our members have highlighted that this rebate does not even cover the weekly increase in power costs experienced since 2023, an increase of around 30%.
“The escalating costs of materials, wages, insurance, and energy are substantial hurdles for businesses in our region. The majority of businesses don’t want handouts; they just want to operate in a competitively fair environment.
“The ongoing market failure in insurance across Northern Australia, coupled with double taxation in Queensland (GST + stamp duty), is deeply concerning. Resolving these issues is crucial for our region to reduce the cost of living, increase liveability, and unlock its full potential to thrive economically.
In January, our Federal Budget Submission focusing on reducing insurance costs gained the support of
19 Chambers across Northern Australia, WA, NT, and QLD. We will continue to advocate for the removal of tax on this essential service.
“It’s not all doom and gloom. As a region, we are in an enviable position with a diverse mix of industries and potential. Just last month, the KPMG Enterprising Cities Report listed Townsville as one of 12 of Australia’s fastest-growing cities.
“At Chamber we have a supportive community of businesses from start-ups to multi nationals and
we provide ways for members to connect, remain informed and learn ways to improve business practices. We also advocate for business in our region as the only independent voice of business for over 143 years.
“As always, I encourage you to buy local as much as you can and keep your dollars circulating in our local economy. Together, we can weather these challenges and emerge stronger.”
