COSBOA is deeply concerned about the increasing cost of doing business, particularly during these challenging times. Small Business reports that they are not profitable, they are absorbing cost increases and fighting to obtain workers.
If the minimum wage increases, we anticipate a wage-price spiral, small businesses will have no option but to increase prices.
We are concerned that Small Business owners, including individuals and family businesses, are finding it increasingly tough to make ends meet. Unfortunately, even if the minimum wage increases for workers, it does not easily translate to higher earnings for these business owners. Small Business owners are currently working for a low return.
We need balance to secure the Australian economy, support small businesses, and consider the cost of living pressures for all Australians. To this end, COSBOA considers a 4% minimum wage increase is more reasonable and manageable for the small business community.
Noting that the Superannuation contributions, paid in addition to wages, are already increasing by 0.5% to 11% as of 1 July 2023.