Posted on: 09 July 2024
South Australia – under the leadership of Peter Malinauskas and Labor – is descending into an economic slowdown on the back of the highest inflation rate in the country, as small businesses make the difficult decision to close their doors because of skyrocketing costs.
For the first time since late 2020, the ANZ SA Stateometer Report has revealed South Australia is now moving into an economic slowdown.
South Australia’s economy has fallen from above trend and an accelerating pace in Q4 2023, to below trend and decelerating in Q1 2024.
The ANZ Stateometer Report has confirmed underlying business investment has now fallen into negative territory and is well below the national average – a huge threat to ongoing business and employment growth in South Australia.
Business conditions – as highlighted by the NAB Business Survey and ANZ Stateometer Report – are now well below the national average.
The report comes as the Opposition today stood with the owner of homewares store, Moose on the Jetty, on Jetty Road in Brighton, who is incredibly worried about the future of her business due to soaring costs – such as electricity – and because South Australian families are tightening their own household budgets.
Shadow Treasurer, Matt Cowdrey, said the ANZ Stateometer Report is a huge cause for concern for South Australians.
“Businesses are already struggling to stay afloat because of cost of living and cost of doing business pressures and this forecast shows South Australia is just about to hit an economic slowdown,” Mr Cowdrey said.
“That means the current situation for small business owners could be about to get a whole lot worse and we know so many are already at breaking point.
“Peter Malinauskas and Labor cut crucial electricity rebates for small businesses in their recent State Budget. Peter Malinauskas must outline his economic plan for the state’s economy to keep South Australians in jobs and food on plates for families.”
Shadow Minister for Finance and Tax Reform, Heidi Girolamo, said Peter Malinauskas must reconsider the Liberal Party’s plan to increase the payroll tax threshold.
“Struggling small businesses need support through the cost of living crisis and that’s why the Liberal Party will increase the payroll tax threshold to $2.1 million from $1.5 million in 2026,” Ms Girolamo said.
“But this doesn’t need to wait until the 2026 election, Labor could offer immediate relief to small businesses who have hit the payroll tax threshold for the first time because of record wages.
“The problem is those businesses who now find themselves over the payroll tax threshold are also taking on huge increases as the cost of doing business explodes.
“We fear many South Australian small businesses will just shut down before they lose everything.”