Each year, SBTC surveys its financial membership to understand the challenges, opportunities and outlook of Australia’s small business community. The 2025 survey drew responses from 847 members across all states and territories and every major industry sector.
Operating Costs Remain the Top Concern
For the third consecutive year, rising operating costs — particularly energy, insurance and commercial rent — were identified as the top business challenge. Sixty-eight percent of respondents rated cost pressures as significant or severe, up from 61% in 2024.
Digital Adoption Accelerating
A notable positive: 54% of respondents had adopted at least one new digital tool in the past 12 months, with cloud accounting software, AI-assisted customer service tools and digital invoicing among the most commonly cited.
Workforce Challenges Easing Slightly
After two years of acute labour shortages, 43% of businesses reported that staffing was easier than last year — the first improvement recorded since 2020. However, finding skilled workers in trades, health and technology remained significantly more difficult than other categories.
These findings align with broader economic data published by the Reserve Bank of Australia and the Australian Bureau of Statistics, both of which have noted the resilience of the small business sector through recent economic cycles.
Outlook for 2025
Despite ongoing cost pressures, business confidence was modestly positive: 52% of respondents expected revenue to be about the same or better than 2024. The full survey report with industry and state breakdowns is available to financial members in the SBTC resources portal.
