{"id":44397,"date":"2026-07-04T23:42:19","date_gmt":"2026-07-04T23:42:19","guid":{"rendered":"https:\/\/www.europesays.com\/australia\/44397\/"},"modified":"2026-07-04T23:42:19","modified_gmt":"2026-07-04T23:42:19","slug":"wage-increase-the-final-straw-for-struggling-small-businesses","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/australia\/44397\/","title":{"rendered":"Wage increase the final straw for struggling small businesses"},"content":{"rendered":"

When Broken Hill couple Shelley and David Garnaut purchased a small corner store in 2007, they were optimistic about its long-term viability.<\/p>\n

At its peak in 2015, the store’s income enabled them to cover costs, retain six staff and pay Ms Garnaut a wage.<\/p>\n

However, the couple, now in their 60s, have been forced to close their doors due to a dwindling customer base and rising costs.<\/p>\n

“We’ve been battling, really battling,” Ms Garnaut said.<\/p>\n

\"A<\/p>\n

After 70 years in operation, the J&K store was forced to close on June 30. (ABC Broken Hill: Oliver Brown)<\/p>\n

Ms Garnaut said their electricity costs had risen from $3,000 to $5,000 in the past 12 months.<\/p>\n

The final straw came this week with a 6 per cent increase<\/a> to the minimum wage and new requirements for employers to pay superannuation<\/a> every pay cycle.<\/p>\n

“There was just no way [to stay open],” Ms Garnaut said.<\/p>\n

“David and I [were] working more and more [and we] only had [our staff] for a couple of hours a day.<\/p>\n

“I cut them back to try and keep them employed and [it] just still didn’t work.”<\/p>\n

\"A<\/p>\n

Shelley Garnaut accepts that she is unable to absorb the rising costs of doing business. (ABC Broken Hill: Oliver Brown)<\/p>\n

Small business ‘not for the faint-hearted’<\/p>\n

The Garnauts’ J&K store, one of the city’s few remaining corner stores, had been open for 70 years before its closure last week.<\/p>\n

It is one example of Broken Hill’s small business landscape changing at the start of the new financial year.<\/p>\n

A local cafe recently announced its closure due to rising costs after only 15 months in operation.<\/p>\n

Meanwhile, other businesses have begun displaying signs advising customers of price increases to help offset rising wage and utility costs.<\/p>\n

\"A<\/p>\n

Several small businesses in Broken Hill have warned their prices are rising due to increased operational costs. (ABC Broken Hill: Oliver Brown)<\/p>\n

David Trinder, who has owned and operated restaurants in the city for more than 40 years, said he was planning to increase prices.<\/p>\n

“Business at the moment is not for the faint-hearted, particularly in hospitality, given the short-staffing solutions,” Mr Trinder said.<\/p>\n

“Price rises are an ongoing problem that we face \u2026 like everything else, everything goes up, and we try to be reasonable in our application to price rises.”<\/p>\n

\"A<\/p>\n

David Trinder says he plans to increase prices to help with rising expenses. (ABC Broken Hill: Oliver Brown)<\/p>\n

He said the government should do more to support small businesses.<\/p>\n

“Your power bills come around every three months, your gas bills every month \u2026 you have multiple accounts, it affects your cash flows, and it’s constantly rising,” Mr Trinder said.<\/p>\n

“That’s one item I believe should be addressed.”<\/p>\n

NSW Small Business Commissioner Kalina Koloff said she recognised the impact of rising cost pressures on small businesses, including wages and fuel.<\/p>\n

She said small business owners in financial distress should seek support.<\/p>\n

\"A<\/p>\n

Kalina Koloff is encouraging small businesses experiencing financial pressures to seek support. (Supplied: NSW Small Business Commission)<\/p>\n

“This might include, for example, having a conversation with the Australian Taxation Office on meeting financial obligations or with their local ServiceNSW Business Concierge for access to advice, tools and training,” she said.<\/p>\n

Ongoing national issue<\/p>\n

AMP chief economist Shane Oliver is not surprised to hear Broken Hill businesses are struggling under increased financial pressure.<\/p>\n

Mr Oliver said the government’s slow phasing out of the fuel excise from this month<\/a> was likely another contributing factor, as many regional small businesses relied on freight to source their goods.<\/p>\n

“Small business is often fairly sensitive to any changes in their costs, and they often operate on very thin margins,” Mr Oliver said.<\/p>\n

“These sorts of changes coming all together, particularly the rise in the minimum wage [and] also the increase in fuel prices, could have quite a significant impact on small business.”<\/p>\n

Mr Oliver also said other communities across the country, both in urban and regional areas, were likely experiencing a similar strain.<\/p>\n

“[It’s] been a continuous issue since we came out of the pandemic, these cost increases, and of course the situation in the Middle East was just the latest cost shock,” he said.<\/p>\n

\"An<\/p>\n

Shane Oliver says it is becoming increasingly difficult to run a small business. (ABC News: Daniel Irvine)<\/p>\n

Federal Small Business Minister Anne Aly acknowledged that proprietors were doing it tough.<\/p>\n

She said the government was providing support, including “making the $20,000 instant asset write-off permanent, and saving businesses $127 million through removing nuisance tariff and compliance costs”.<\/p>\n

“In recognition of this important change, we’ve given small businesses three years to prepare for payday super,” she said.<\/p>\n

Meanwhile, Ms Garnaut, who is looking forward to fewer early morning starts despite not being ready for full retirement, is concerned about the future of other local businesses.<\/p>\n

“I hope that they stay on top of everything [and] keep their doors open, but with the way everything’s going. It will be a struggle.”<\/p>\n

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