By JONATHON HOWARD
SOUTHERN Downs businesses have been slugged with a total of nine new operational cost hikes as part of a range of sweeping changes announced this week.
A minimum wage increase and rising insurance premiums were just two areas expected to impact business and in turn end consumers.
Chamber of Commerce and Industry Queensland General Manager Nick Behrens outlined that from this week businesses were facing at least nine major cost challenges, with massive increases simultaneously taking place across multiple aspects of business.
“Some of these increases are determined by the Federal Government while others are determined by the state and local governments,” he said
Mr Behrens said each of the increases was assessed in isolation with no consideration of the overall impact that the combined increases had on business viability.
“When we see them all on the same page we are left with the inescapable conclusion that business is under threat,” he said.
“Businesses simply cannot afford these continual cost increases, particularly as they find themselves in a position where they are unable to pass on higher costs to customers due to cautious spending at present.”
Warwick Chamber of Commerce and Industry president David Littleproud said local consumers were likely to be impacted.
“Small businesses have no choice but the pass the increases on to consumers,” he said.
“Businesses will be forced to pass on those costs in order to survive and remain competitive.”
Mr Littleproud warned that further hikes to fuel were tipped for 12 months’time.
“Petrol will also have a carbon tax on it by 1 July next year and this will have major implications at the pump.”
breakout
Where we’re being hit
ON TOP of an already costly operating environment the lot of businesses will be made significantly more difficult with:
– A $15.80 increase associated with the federal minimum wage review;
– Further wage, penalty and allowance increases associated with the phase-in for new modern awards;
– An increase in the compulsory employer superannuation contributions from 9 to 9.25 per cent;
– An increase in the carbon price from $23 per tonne of emissions to $24.15.
– Between a 16 to 26 per cent increase in electricity prices.
– At least 11.9 per cent increase in water prices.
– Increase in duty on general insurance from 7.5 per cent to 9 per cent; and
– An increase in the Urban Fire Levy; and other significant increases associated with council rates across Queensland.
