Western Australian small businesses are the “backbone of our economy,” contributing billions of dollars, providing millions of jobs and helping communities thrive.
That message from Small Business Minister Jackie Jarvis was echoed throughout the CCIWA Small Business Summit on October 26, which brought together about 200 business owners and industry leaders to connect, share ideas and gain practical insights to help them grow.
Small Business Minister Jackie Jarvis
“Small businesses help shape the identity and prosperity of every community across our State,” said.
“It’s your enterprising spirit that’s one of our State’s greatest strengths.”
Small Business Development Commissioner and CEO Saj Abdoolakhan said WA small businesses contributed $87.2 billion to the State’s economy in 2024-25.
“97.3% of WA businesses are small … together, they are a big workforce of about 541,000 Western Australians, which is about 35% of private sector jobs,” he said.
Growth brings opportunities and challenges
As WA’s ageing population increases, Abdoolakhan predicted the care sector to grow by 58% by 2036.
“Demand alone doesn’t mean a viable business, but knowing it’s coming is a head start,” he said.
“Mining may be king economically, but healthcare is king of jobs.”
Other sectors Abdoolakhan expected to see the most growth were tech and logistics.
CCIWA Chief Economist Dr Daniel Kiely said there were major opportunities for small businesses in defence, clean energy projects and critical minerals.
“These opportunities will flow directly to small and medium-sized businesses, but the policy settings have to be right to ensure businesses across all regions of WA can capitalise,” he said.
Despite strong growth overall, many small businesses continue to operate with limited resources and rising costs.
Our September Business Confidence Survey found costs for businesses – primarily from high inflation and fuel – hit a five-year high, with 80% saying it was restricting growth.
“Rising input costs, wages, taxes and charges, and a potential decline in consumer spending are all weighing heavily on small businesses in WA,” he said.
Payroll tax and card surcharges add cost pressures
Kiely said wage growth was drawing businesses into payroll tax, even where their workforce had not expanded.
With the $1 million threshold remaining unchanged since 2020, a business previously paying $800,000 in wages could now exceed it through wage increases alone.
L-R: Small Business Development Commissioner and CEO Saj Abdoolakhan, Revo Fitness Founder Andrew Holder and CCIWA Chief Economist Dr Daniel Kiely
We are calling for the threshold to increase to $1.3m to reflect wage inflation, and a $1.5m threshold for regional WA to recognise additional operating costs.
“Wages are one of the biggest costs for small businesses, so any relief that can be provided is critical,” Kiely said.
“The money businesses would save by reducing payroll tax could be used to hire more workers or invest in capital that supports innovation and productivity,” he said.
There is also widespread concern about the impact of card payment surcharges on small businesses.
“The changes at a federal level do allow small businesses to pass on the costs, but doing so adds to menu costs, another burden on small businesses,” he said.
“Small businesses in WA have also raised concerns about changes to discretionary trusts, which are used regularly by family businesses to allow for flexibility and succession planning.”
Making regulation fit small business
Kiely said the complexity of industrial relations requirements was adding to the workload for owners already juggling multiple roles.
We are advocating for the small business definition to change, with the employee threshold to increase from 20 to 25, to reduce regulatory burdens.
“A business with 24 or 25 employees is still a really small business,” he said.
“These owners are managing many different tasks, and we need to reduce the burden on them.”
We back WA small business
From advocating for payroll tax reform and simpler regulation to helping employers manage day-to-day challenges, we work to make it easier to do business in WA.
CCIWA membership supports this advocacy while connecting your business with practical advice, resources and services across workplace relations, legal, trade, supply chain and workforce development.
