AGP Executive Report

Budget & Tax Pressure on SMEs: Australia’s federal budget is back in the spotlight as the Coalition, Greens and crossbench push for longer Senate scrutiny of Labor’s tax changes, including curbs on negative gearing and capital gains tax concessions—leaving small business owners waiting on what comes next. Wage Costs & Compliance: The Fair Work Commission confirmed minimum wage rises from 1 July 2026 (4.75% for many award workers), adding pressure for cashflow-tight operators. ATO Record-Keeping Warnings: ATO scrutiny is catching small bookkeeping shortcuts—unreported cash, missing invoices and blurred personal/business finances—turning “small mistakes” into six-figure tax problems. Payments Costs: New proposals to cap commercial credit card interchange fees aim to cut business costs by about $40m a year, targeting fees that currently help fund cardholder perks. Local Retail Survival: Retailers are being urged to treat online as part of the same local business, not a separate channel—especially as consumers chase cheaper options online. Nightlife Grants: Visa Vibe Grants will fund affordable, safer community nightlife across states and territories, backing hospitality and arts precincts. Energy & Waste: WA is putting $17.8m into solar panel and battery recycling pathways, while electricity price relief from renewables continues to matter for small operators.

Budget & tax timing: Labor’s push to pass major budget bills by end of June faces delays as the Coalition and Greens negotiate longer inquiries into tax changes and NDIS reforms, putting small-business certainty on hold. Super crackdown: Unpaid super is being treated as wage theft, with “payday super” rules from 1 July 2026 aimed at stopping employers from holding workers’ money. Minimum wage rise: The Fair Work Commission confirmed a 4.75% national minimum wage increase from 1 July 2026 (to $26.44/hour), with extra protection for the lowest-paid award workers. Procurement pitfalls: Government contract bids are being rejected over simple wording misses, with experts warning SMEs to follow lease and incentive requirements exactly. Trust tax shake-up: New baseline 30% tax on discretionary trusts is flagged, with the small business ombudsman offered as a support route for entrepreneurs moving income out of trusts. Cost-of-living retail shift: New data suggests online retail prices are down versus CPI, helping households save—good news for value-focused SMBs competing on service and choice. Payments pressure: Proposals to cut card acceptance fees could reduce costs for retailers and flow through to lower prices. Trade shock watch: The US is consulting on new tariffs over forced-labour claims, which could ripple through import costs for Australian exporters and suppliers.

Wage Watch: The Fair Work Commission has confirmed a 4.75% rise to Australia’s national minimum wage from 1 July 2026, lifting it to $26.44 an hour ($1004.90 per week) and raising modern award rates, with extra protection for the lowest-paid classifications. Economic Pressure: The ABS says GDP grew just 0.3% in the March quarter as cyclone disruptions hit exports and productivity fell, while business investment rose on big machinery and equipment spending tied to data centres. Budget & Tax Tension: Business groups warn Labor’s tax changes could weigh on investment and trusts, as debate over capital gains tax reform continues to dominate small-business concerns. SME Tech & AI: Several AI-focused moves landed, including agnt8x launching an AI agent recruitment/workforce platform and NextGen Pathology choosing Proscia to build an AI foundation for growth. Energy & Waste: WA’s “Remade in WA” gets $17.8m to build solar panel and embedded battery recycling pathways, aiming to cut landfill and create local jobs. Local Business Opportunities: NFF-backed “Know Your Grocery Code” training will help fresh produce suppliers understand and enforce rights under the mandatory grocery code. Payments & Growth: IREN secured transmission for an 800MW South Australia data centre campus, expected to support hundreds of construction and ongoing jobs. Market Signals: ScrapTrade launched an online scrap buying and selling marketplace to help households and businesses get better prices without the usual phone-and-yard runaround.

CGT and negative gearing backlash: Prime Minister Anthony Albanese defended Labor’s capital gains tax changes in Question Time, arguing most Australians have “never even heard” of discretionary trusts, while comedian Dave “Hughesy” Hughes and business voices say the reforms are driving anger and uncertainty for owners and SMEs. Minimum wage pressure on SMEs: New minimum wage rises (including a 4.75% increase for award workers) are set to lift costs for small businesses, with employers warning it adds more pressure. Director ID enforcement: NSW company directors were fined $10,000 each for failing to have director ID numbers, a reminder for SMEs to stay compliant. SMSF income search: Self-managed super fund trustees are shifting away from cash and deposits toward fixed-term accounts, with TermPlus promoting up to 8.50% p.a. over five years. Tech for small business: Anthropic’s Mythos AI is rolling out via a controlled program aimed at finding software vulnerabilities, while AskNicely launched AI agents to summarise customer feedback and draft replies. Local business ecosystem: Scalare Partners has acquired Fishburners out of administration, bringing the startup co-working brand into its portfolio. Community and events: Shepparton is set as a free FIFA World Cup live site for the Socceroos opener, with multiple Victorian locations also hosting match screenings. Workforce disruption risk: UKG estimates the World Cup could cost employers $17bn globally in lost productivity, including $653m in Australia.

Minimum Wage Shock for SMEs: The Fair Work Commission lifted modern award wages by 4.75% and the national minimum wage by 6% from July 1, pushing the full-time minimum to $26.44 an hour and $1004.90 a week—good news for low-paid workers, but another cost hit for already stretched small businesses. Budget Tax Uncertainty: Coalition leaders want to split Labor’s capital gains and negative gearing changes, while small business groups are still waiting on clear carve-outs and workable implementation details—keeping planning on hold for startups and owner-operators. Employment Pressure Signals: New insolvency data shows personal insolvencies up and “recession-like” conditions spreading, with discretionary spending falling and small businesses feeling the squeeze. Docklands Community Push: Docklands’ new waterfront farmers’ market drew 3,500+ people, while a Docklands community group is urging the City of Melbourne to fund a Harbour Esplanade master plan that supports local hospitality, retail and small business growth. Risk Cover for Directors: Pacific Indemnity launched an Axa XL-backed management liability product aimed at Australian SMEs, targeting cyber-triggered claims, social engineering fraud and regulatory investigations. Workforce Planning Test: UKG research flags the 2026 FIFA World Cup could cost workplaces up to $17b in lost productivity globally, a reminder for SME operators to plan rosters and customer coverage. SME Hiring Reality Check: Reports say small builders are refusing new apprentices, adding to the skills crunch that already makes growth harder for trades and regional operators.

Minimum wage squeeze: The Fair Work Commission has lifted the National Minimum Wage by 6% from 1 July to $26.44 an hour ($1,004.90 a week), while modern award rates rise 4.75%—a move employers say adds pressure as inflation and uncertainty persist. Wage-price spiral fears: AMP warns the above-inflation increases could worsen inflation and push interest rates higher, raising costs for small firms. Payday super deadline: From 1 July, employers must pay super on the same day as wages (within seven days), after ATO flagged about $6bn in unpaid super. Housing hits builders: Small builders warn apprenticeship training is becoming too risky as renovation work slows and costs rise, threatening delivery of housing targets. Housing crisis response: South Australia’s budget is flagged as a make-or-break chance to speed approvals and fund enabling infrastructure. Retail admin fallout: Cheap as Chips is being rebranded to Choice after administration, with 45 stores acquired and jobs safeguarded. Household strain shows up in insolvencies: Jirsch Sutherland says personal insolvencies are rising and “date-night economics” is worsening, with business-related filings up. Energy relief via batteries: More grid and home battery storage is helping flatten electricity prices, with some households and small businesses seeing lower forward contract costs.

PNG–Australia Business Forum: Papua New Guinea PM James Marape told Brisbane delegates the relationship is “joined at the hips”, promising policy support for investors and urging businesses to look beyond mining and petroleum while benefits flow to health, education and power. SME succession pressure: New research warns a looming ownership handover crisis, with many baby-boomer owners planning to sell within five years but lacking documented systems and scalable operations. Housing tax backlash: Australia’s economy minister linked rising support for the far right to “legitimate” economic anxieties as Labor pushes CGT and negative gearing changes that small business groups say penalise landlords and investors. Cost-of-living admin strain: Victoria’s 20% car rego rebate triggered heavy traffic on Service Victoria, slowing access and causing login errors for some users. Retail leasing update (Vic): The Victorian Small Business Commission’s updated tenant retail leasing brochure becomes mandatory for new negotiations from July 1, aiming to reduce disputes. Small business visibility: A practical reminder that growth often stalls from a “visibility gap” when marketing, PR and sales efforts aren’t aligned. Tech for operators: XVision AI says its EagleEye platform has deployed 180 units across APAC and targets 1,000 intersections by 2027. Billionaire wealth vs poverty: Oxfam says Australia’s billionaire wealth rose about $50k a minute in 2025, widening the gap as poverty remains widespread.

CGT & housing carve-outs: Housing Minister Clare O’Neil says the government will resolve “speedily” who gets exemptions from Labor’s controversial capital gains tax changes, as the push to pass legislation by end-June faces mounting small-business and investor backlash. Payday super compliance: A Tasmanian operator explains how “payday super” from 1 July 2026 will force payroll and cash-flow changes for small employers. Small business leaders awards: Nominations are open for the 2026 Inside Small Business Top 50 Small Business Leaders, celebrating local operators making a real difference. Rare earths investment boost: NT’s Nolans Project (Arafura Rare Earths) has been declared the Territory’s first Significant Project under the Coordinator Act, with construction expected to start in September and promises of jobs and local business support. Perth transport tenders: Tenders are open for new Swan ferry terminals at Applecross and Matilda Bay under METRONET, including planning for electric ferry charging. Live music venue pressure: Sydney’s Mary’s Underground will close this winter, citing rising operating costs and headwinds for small venues. Food waste to revenue: Canberra bakery Pialligo Bakesmith is using Too Good To Go to sell surplus premium food at a discount. AI for SMBs: A roundup highlights big-company AI ROI doubts (Uber/Starbucks/OpenAI/TikTok) and what it means for cautious small-business adoption. Local business spotlight: Lantern Partners’ CEO shares how fractional CFO support helps startups and scaleups at key growth pinch points.

CGT showdown: Housing Minister Clare O’Neil says the Albanese government will “speedily” settle who gets carve-outs from sweeping capital gains tax discount changes, while defending the reforms as fixing long-running distortions that fuelled the property boom. Small business impact: Labor is pushing the CGT package through Parliament with Greens support, but sources flag possible targeted relief for startups and small businesses—though the core rules are unlikely to be narrowed to property only. Workplace pressure from AI: Australia’s Fair Work Commission is overhauling how claims are filed and managed after generative AI helped drive a surge in workplace disputes, with lodgements projected to hit another record year. Electrification lag: A “missing middle” of gas-using SMEs is falling behind on electrification, leaving manufacturers exposed to gas price volatility and undermining climate goals. Perth transport tenders: Tenders are open for new Swan ferry terminals at Applecross and Matilda Bay under the $107m METRONET expansion, with electric charging planned at Matilda Bay. Energy disruption: Storms in WA left 16,000+ customers without power, with restoration times varying widely. Tech for SMBs: Uber is questioning AI ROI, while a broader SMB tech roundup highlights shifting AI adoption and tools.

AUKUS Undersea Tech: Australia, the US and the UK have launched the first Pillar 2 underwater tech project, aiming to develop shared payloads for uncrewed systems and boost defence supply-chain opportunities for local firms. AI Sovereignty Debate: A fresh push argues Australia risks falling behind on AI control and governance, with knock-on effects for productivity and the jobs pipeline. Small Business Decarbonisation Gap: Thousands of SMEs are still stuck on gas-powered processes despite electrification options, largely due to network connection costs and patchy subsidy design—leaving manufacturers exposed to fuel volatility. Energy Relief Pressure: Renewables and batteries are driving expectations of lower power bills from July, but some businesses say the pain is still biting and want stronger rebates. Tax & CGT Fight: Opposition leaders are ramping up criticism of Labor’s capital gains tax and negative gearing changes, warning they’ll hit small business and startups, while the government says impacts will be modest for house prices. Local Business Impact Watch: Australia Post’s shift toward parcels and digital services is drawing fire for quietly weakening the licensed post office network that remote communities and small operators rely on. ACCC Scrutiny: The ACCC is investigating Uber Eats over exclusive deals, a reminder that platform competition rules can directly affect small traders’ margins.

CGT and negative gearing shake-up: JP Morgan says carve-outs mean many landlords won’t feel the full impact immediately, with negative gearing restricted for new homes and CGT changes applying only to post-announcement gains. Small business energy pressure: A new report warns thousands of SMEs are falling behind on electrification, while another push argues electric trucks adoption is held back by inconsistent support and rules—both issues hit margins and planning. ACCC competition probe: The watchdog has opened a preliminary investigation into Uber Eats’ exclusive deals with retailers like Bunnings, after rivals claimed it blocks smaller delivery platforms. Native title liability clarified: WA’s state government was largely cleared in a landmark native title case, with the court ruling Fortescue liable for a record compensation amount. Local community support: Melbourne’s City-backed food rescue initiative will divert surplus produce from Queen Victoria Market to community groups as food insecurity rises. SME tech and services: Integris’ planned acquisition of Australia-based MSP First Focus targets AI, data protection and governance needs from SMBs; separately, open banking coverage highlights faster lending and payment automation for small firms. Workforce and compliance: TGA updates expand eligibility for psychedelic-assisted therapy prescribers, signalling more structured access pathways.

ACCC Watch: The regulator has launched a preliminary probe into Uber Eats’ exclusive deals with retailers (including Bunnings), after smaller rivals argued the arrangements block access and entrench Uber Eats’ power. Tax Shock for SMEs: The ATO has published a new 2026 tax-time primer for small businesses ahead of EOFY, while the wider CGT overhaul debate keeps heating up—Treasury says consultation will focus on businesses with low or zero cost base, but small business groups warn it could curb ambition and spark more tax planning. Energy Relief: The AER’s final Default Market Offer for 2026-27 points to lower electricity prices for many NSW and SE QLD households and small businesses from July 1 (with SA rising slightly). Open Banking: Open banking is expanding, with Australia’s framework highlighted alongside new rights in other markets—promising faster lending and payment automation for small firms. Local Food Support: Melbourne’s City of Melbourne is rolling out a food rescue program using surplus from Queen Victoria Market traders to supply community relief groups and cut waste. Startup Ecosystem: Australia is back in the world’s top 10 startup ecosystems, with growth outpacing the global average—good news for founders and investors. Workplace Safety Tech: Cannabix says its BreathLogix alcohol screening is being deployed in Australian mining, municipal and aviation sectors, aiming to reduce risk and improve compliance. Small Business Security/Operations: Clean Group launched a dedicated Sydney page for commercial cleaning, leaning on triple ISO-certified standards to win facility managers’ business.

ACCC Watch: The ACCC has opened a preliminary investigation into Uber Eats over alleged exclusive deals with retailers including Bunnings, with rivals claiming the arrangements block smaller delivery competitors and entrench Uber Eats’ power. Budget Fallout for SMBs: Treasury secretary Jenny Wilkinson says Labor’s housing tax changes will “reallocate” where homes get built, with analysis pointing to fewer homes over time but a net increase from construction incentives—while debate keeps heating up over capital gains tax and negative gearing impacts on investors and startups. Energy Pressure: Small businesses are again calling for new energy rebates as fuel and power costs squeeze margins; MYOB data says rebate cuts hit 51% of businesses and many are delaying projects. AI Adoption Reality Check: Australian SMEs are more open to AI than before, but trust and practical “how to use it safely” concerns are still slowing deeper rollout. Local Wins: Canberra screen-maker Monaro Screens takes out a national Trade Services award at the Australian Small Business Champion Awards. Fuel Crisis Strain: ABS survey data finds 72% of businesses reporting negative impacts from fuel prices and availability, with many absorbing costs or changing operations.

CGT/negative gearing showdown: Labor has introduced the first step of its capital gains tax and negative gearing reforms into Parliament, with the Senate set to examine the bill later in June—sparking intense backlash from business groups and start-up founders, plus calls for exemptions and even an election. SME AI trust gap: Xero and Australia’s National AI Centre data show SMEs are interested in AI but held back by trust, privacy and “how to use it safely” concerns, with AI adoption rebounding to 44% in February. SME stress levels: Xero’s Emotional Tax Return research finds 1 in 3 owners have considered shutting down due to stress, with tax time a major trigger and fear of mistakes, fines and paperwork topping the list. Power bills relief push: Multiple reports point to lower power bills from July as renewables and batteries drive down costs, with regulators and energy caps in the mix. Payments and marketing tools: Reddit rolled out Shopify product-catalog syncing for Dynamic Product Ads in Australia, while a guide highlights payment gateway options tailored to different small business needs. Regional Victoria infrastructure fight: Nationals MPs argue regional Victoria gets less than 12% of infrastructure spend in the 2025-26 budget and are pushing a “fair share” guarantee for regional projects. Healthcare cleaning standards: ISSA launched a Healthcare Environmental Hygiene Professional Certification to help hospitals standardise training for EVS teams.

Tax Reform Shock: Treasurer Jim Chalmers has introduced legislation to Parliament to overhaul capital gains tax and negative gearing, plus a $250-a-year working Australians tax offset and a $1,000 standard deduction—moves Labor says are “for workers” and first home buyers, but business groups warn the end of the 50% CGT discount could chill investment and hit startups. Senate Scrutiny: The bill is set for a three-week Senate inquiry, keeping pressure on Labor over carve-outs and how the changes will apply to non-property assets. Small Business Impact: A Brisbane cafe sale scenario suggests the new CGT rules could nearly double tax on gains for common business structures, while Seek research estimates wrong hires cost SMEs $7.3b a year. Right to Repair Push: The government plans to extend right-to-repair rules to agricultural vehicles and machinery to cut downtime and reduce manufacturer control over repair information. Digital & Retail Tech: Kmart rolls out a Google Gemini-powered AI shopping assistant with virtual try-ons, and a new piece argues many small business websites fail due to copywriting, not traffic. Local Business Boosts: A Sunshine Coast hinterland main street upgrade is moving ahead with works timed to reduce disruption for Christmas trading. ATO Pressure: Tax Ombudsman complaints about ATO debt collection are up 127% year-on-year.

CGT showdown for SMEs: Australia’s peak business groups want Labor to limit capital gains tax changes to housing only, but Treasurer Jim Chalmers says the reforms will stay broad to avoid “replacing one distortion with another,” while small business and startups warn the new inflation-based model could hit investment and entrepreneurship. Payday Super push: The ATO is reminding SMEs that Payday Super starts July 1, with super paid each payday and businesses urged to update processes now. Right-to-repair for farms: The NFF welcomes the government releasing proposals to extend right-to-repair laws to agricultural machinery, aiming to cut downtime and boost competition in repairs. Energy costs and embedded networks: Victoria will force electricity and gas retailers to cut prices for embedded network customers from July 1 next year, affecting about 174,000 households and 20,000 small businesses locked into building-level arrangements. Local trading conditions: Perth’s City of Perth backs a $22.8m Northbridge (James Street) facelift focused on safer, greener footpaths and event-ready streets to lift business activity. Regional business support: ANZ reopens its Chinchilla branch (five days a week) as part of a $20m Queensland branch investment plan. Construction admin relief (WA): WA lifts the Construction Training Fund Levy threshold from $20,000 to $100,000 from 1 July to reduce red tape for small and medium builders.