Of more than 500 business owners and decision-makers surveyed, just over a third (35%) said they had reduced operating expenses, while 33% had revised pricing strategies. A quarter had paused hiring, while nearly one in five had diversified their products or services.
“Local SMEs are doing what they can to give themselves a financial buffer by lowering costs to improve their position,” said MYOB chief customer officer Dean Chadwick (pictured).
Behind these moves is concern about the wider economy. Almost four in 10 (39%) of those surveyed expect conditions to deteriorate in the year ahead, while 36% anticipate improvement and 24% predict no change. That marks a sharp drop in confidence compared with earlier in 2025, when nearly half of SMEs had expected growth.
Inflation remains a dominant pressure, with 58% of respondents reporting they were “somewhat” or “extremely” concerned about its impact, and only 11% saying they were unconcerned.
“Following the ‘survive to 25’ narrative that surfaced last year and with the Reserve Bank making a few cuts to the Official Cash Rate, businesses and consumers alike were hopeful that 2025 might offer a reprieve. However, while winter is a notoriously challenging trading period for local enterprises, there’s been a gradual shift in mood and sentiment over the past several months around the local economy,” Chadwick said.