WA businesses are closing out 2025 with renewed optimism, however, rising costs and insurance challenges continue to place significant pressure on operations, according to CCIWA’s latest Business Confidence Survey.
Nearly half (49%) of businesses expect stronger short-term trading conditions – an eight-percentage point lift from last quarter. A further 23% anticipate no change, while 28% expect weaker conditions.
Long-term confidence looks to be even rosier. The majority (67%) of businesses expect economic conditions to strengthen over the next 12 months, while 21% expect no change and just 13% foresee a softening – down 12 points from the previous quarter.
CCIWA Head of Policy Dr Anthea Wesley says several factors are underpinning the more positive outlook.
“Strong commodity prices and significant government-backed infrastructure projects are helping to keep WA’s business confidence relatively strong,” she says.
Costs and skills challenges remain entrenched
Despite improving sentiment, businesses continue to grapple with rising expenses and labour shortages.
More than half (52%) cite increasing operational costs as a barrier to growth, while 49% report difficulties finding skilled workers.
“It’s clear that although inflation seems to be cooling, costs are still very high for WA businesses and remain a significant concern,” Wesley says.
“Wage costs in particular are extremely high, which is having an impact on how much payroll tax WA businesses are paying.
“It is critical that the WA Government addresses the State’s unfair payroll tax system to keep WA competitive and ease the cost pressures on small and family businesses.”
Insurance climbs as a major barrier
The survey also examines the rising impact of insurance premiums – a long-standing concern for businesses across the State.
This quarter, high insurance prices surpass wages as the biggest cost pressure.
Key findings include:
- More than half (53%) of businesses rank insurance among their top three cost pressures.
- Almost two in five (39%) say they go without insurance or operate under-insured due to high premiums.
- Businesses in public administration and safety report a 100% rate of having been declined coverage at least once.
- Events, arts and recreation businesses also report being declined.
“Insurance costs have been steadily climbing for both households and businesses, which is forcing many small and family businesses in particular to make some very difficult choices,” Wesley says.
Despite these challenges, WA’s underlying economic momentum – driven by strong commodity markets and major projects – continues to buoy confidence as businesses head into 2026.
CCIWA’s Economic reports, including Business Confidence, are available exclusively to CCIWA Complete, Advantage and Corporate Members. For more see CCIWA’s Economic Insight page.
