Western Australian business confidence weakened over the June quarter as cost pressures edged up – led by rising wages, skyrocketing insurance premiums and taxes.
While labour market conditions continue to ease, skills shortages remain a challenge, with 65% reporting this as a barrier to business growth – although this is the lowest proportion since we began asking this question in September 2021. Adding to labour market constraints is the limited supply of housing, which has already impacted 41% of WA businesses in their attempts to attract staff.
Despite the slip in confidence this quarter, it’s important to underline that the State has now recorded 16 consecutive quarters of above average short-term business confidence. This stands in stark contrast to lagging confidence across the rest of the nation and once again reaffirms WA’s position as Australia’s economic powerhouse.
However, it is critical the State does all it can to sustain confidence, especially given the longer-term outlook for businesses is more downbeat. Ahead of the next state election in early 2025, WA businesses have overwhelmingly indicated payroll tax relief as a priority commitment they want to see from the State Government. With the rising cost of doing business continuing to be the most significant barrier to growth, two thirds (67%) of respondents indicated payroll tax reform was one of the top three issues they want addressed by the State Government as it would provide instant relief to small and medium sized businesses.
In this edition of CCIWA’s Business Confidence Survey, we asked businesses what commitments they would like to see from the State Government ahead of the next election, what their main cost pressures are, whether housing shortages are affecting their ability to employ and retain staff, and whether they continue to face skills shortages.
