Western Australian businesses have overwhelmingly nominated payroll tax relief as their key ask ahead of the state election.
This call comes amid increasing signs Western Australia now has a two-speed economy. Insolvency rates have surged past their pre-Covid levels, and an increasing number of businesses are reporting their profit margins, and by extension their viability, are on the decline. Some of the sectors most likely to be reporting pressure on profits are the agriculture, health and community services, and arts and recreation industries.
At the same time, the overall economy is performing well, which is reflected in strong overall confidence. This comes at a time when the leading barrier to business growth, rising operating costs, settles to its lowest point in three years. Also buoying the outlook are significant declines in the proportion of businesses reporting weak demand and supply chain disruptions as hurdles to business.
Despite the decline in rising operating costs, this remains the top barrier to business growth. As the 2025 state election approaches, WA business have identified a reduction in payroll tax as the top priority for the State Government to address. With the elevated cost of doing business still posing a significant challenge, three in five (58%) businesses ranked payroll tax reform among the top three commitments they want prioritised, highlighting its ability to provide immediate relief to small and medium-sized businesses.
The availability of skilled labour, however, has bucked its downwards trend, with the proportion reporting this as a barrier rising for the first time in 12 months. In addition, the proportion of businesses struggling to fill a position has increased to its highest since September 2023. As a result, measures to attract workers into the state was also highlighted as a priority for WA businesses at the upcoming State election.
In this edition of CCIWA’s Business Confidence Survey, we asked WA businesses the commitments they would like to see prioritised by State Government ahead of the coming election, the opportunities and challenges the energy transition presents for WA, and the extent to which labour shortages continue to weigh on businesses.
