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00:00WE COME INTO THIS SELECTION AS WE SEE THE ECONOMIC REBOUND QUIET STRONG IN AUSTRALIA. HOW MANY OF THE BUSINESSES THAT YOU REPRESENT ARE FEELING THE EFFECTS OF THE PAST COUPLE OF YEARS? > > THE LATEST RESEARCH SHOWS THAT ABOUT THREE QUARTERS -- IN AUSTRALIA, I AM TALKING ABOUT 2.4 MILLION ACTIVELY TRADING SMALL BUSINESSES. THAT IS WHAT WE ARE TALKING ABOUT. OUT OF THOSE ACTIVELY TRADING SMALL BUSINESSES, AROUND THREE QUARTERS BELIEVE THEY WILL RECOVER BY NEXT YEAR. THEY ARE CURRENTLY IN RECOVERY MODE. SMALL BUSINESSES DID FACE A SMALL POUNDING AND AS WE NORMALLY SAY, THEY DID THE HEAVY LIFTING DURING THE PANDEMIC. > > IT IS CLEAR AT THE MOMENT THAT THERE ARE TWO THINGS. ONE IS RISING COSTS, THE OTHER IS A SKILL SHORTAGE. WHAT ARE THE POLICY PRIORITIES THAT THE BUSINESS IS THAT YOU REPRESENT WOULD LIKE TO SEE? > > THEY HAVE TWO MAJOR ISSUES BECAUSE WHAT HAPPENED DURING THE PANDEMIC THAT CREATED A SHORTAGE IN CERTAIN AREAS, THE GOVERNMENT CLOSED DOWN OUR BORDERS AS FAR AS INTERNATIONAL NOT ONLY IN AUSTRALIA BUT FROM OUTSIDE OF AUSTRALIA. AUSTRALIANS COULD NOT EITHER DEPART OR LEAVE AUSTRALIA DURING THE CLOSE DOWN. WE HAVE PEOPLE WHO GO WORKING ON FARMS TO PICK FRUIT. ALL OF THAT CREATED A PROBLEM. THE SKILLS SHORTAGE IN CERTAIN AREAS IS VERY REAL FOR VARIOUS SIZED BUSINESSES. THIS IS ALL PROHIBITING BUSINESSES TO GROW AND GET OUT OF THE SITUATION. A COLLEAGUE OF MINE HAS RESTAURANTS. HE CANNOT TRADE AT NIGHTTIME BECAUSE HE HAS INSUFFICIENT STAFF. EVENTUALLY, THAT TYPE OF THING WILL IMPACT ON A BUSINESS AND MAY EVENTUALLY CLOSE DOWN. THE OTHER THING THAT IS ONLY COMING TO LIGHT NOW AND I DON ' T THINK ANYONE HAS THOUGHT VERY MUCH ABOUT IT BUT THE FREIGHT COST -- AUSTRALIA AS YOU KNOW IS AN ISLAND. WE HAVE LONG DISTANCES. ONE OF THE THINGS STARTING TO CIRCULATE ARE THE COSTS OF BRINGING THESE BY IN AUSTRALIA. THESE ARE VERY EXPENSIVE NOW. WHAT COSTED $500 IS NOW COSTING $45,000 -- FOUR THOUSAND OR $5,000. YOU MAKE UP 1/5 OF AUSTRALIA ' S GDP. YOU ARE VERY IMPORTANT. AS THE BACK OF AUSTRALIA DOES THIS, DOES THE NEXT GOVERNMENT NEED TO DO SOMETHING ABOUT THAT? > > OUR LENDING SITUATION HAS BEEN A PROBLEM BECAUSE A LOT OF BUSINESSES DO NOT FIT INTO THE TRADITIONAL BIG BANKING LENDING CRITERIA. WE ARE DOING SOMETHING ABOUT THIS AND THIS IS LONGER-TERM AND IT NEEDS SERIOUS ADDRESSING. A LACK OF FINANCE IS THE SINGLE BIGGEST CAUSE OF BUSINESS FAILURE IN THIS COUNTRY. WE REALLY NEED TO DO SOMETHING ABOUT IT. IT IS NOT A POLICY DOCUMENT BUT THE FRAMEWORK FOR POLICY MAKERS IN GOVERNMENT. ONE OF THE PILLARS IS ABOUT FINANCES SO WE ARE WORKING ON THAT. > > HOW BIG OF A PROBLEM IS INFLATION? AUSTRALIA ' S HAS GONE UP BUT IT DOES NOT SEEM ANYWHERE NEAR THE PROBLEM THAT IT IS HERE. WHAT ARE YOUR SMALL BUSINESS MEMBERS SAYING ABOUT IT? > > INFLATION IS A PROBLEM AND WE ARE NOT QUIT AS HIGH IN THE U.S. AND THE U.K.. WE DON ' T KNOW WHERE INFLATION WILL GO. WE ARE TRYING TO ENSURE THAT IT DOES NOT CREATE FURTHER INFLATIONARY PRESSURES. WITH INFLATION, THE PRICE OF EVERYTHING IS GOING UP AND I AM FINDING THAT I CAN GO INTO A SERVICE STATION ONE WEEK TO PICK UP SOMETHING VERY QUICKLY AND IT HAS GONE UP THE NEXT WEEK. IT IS A VERY SERIOUS ISSUE. WE MAY EVEN OVERTAKE YOUR -- WAGE INFLATION. -- WE MAY EVEN OVERTAKE YOUR INFLATION, WE DON ' T KNOW. > > I KNOW THAT THE OVERALL SENTIMENT SEEMS TO BE ABOUT THE FACT THAT MANY OF THEM FEEL LIKE THEY CAN ' T AFFORD IT BUT WE HAVE HOUSEHOLD COSTS RISING AND THEN THE ISSUE OF GROWING WAGES BECOMES NECESSARY. > > THIS IS A TRICKY ONE. WE CAN CREATE EMPLOYMENT AND SO FORTH. WHAT WE NEED TO DO IS PUT THE WHOLE THING INTO PERSPECTIVE BECAUSE THE WAGE RISE THAT IS BEING SUPPORTED -- IT IS 5.1%. IT SOUNDS VERY HIGH BUT WE ARE TALKING ABOUT THE LOWEST IN THE AUSTRALIAN ECONOMY AND IT IS AROUND $200,000. THAT WOULD RAISE THE WAGES BY JUST AROUND OVER ONE DOLLAR. MOST SMALL BUSINESS OWNERS ALREADY PAID MORE. THE QUESTION SHOULD BE WHAT IS AFFORDABLE TO THEM AND EACH ONE THOSE WHAT THEY CAN DO. THERE ARE THINGS THAT I THINK WE CAN DO IS A PRESSURE OFF OF SMALL BUSINESSES. THAT IS ANOTHER STORY. WILL THAT WAGE INCREASE IF IT IS 5.1%? WILL THAT TRANSLATE TO OTHER AREAS WITH THE WORKING PEOPLE?

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SBAA CEO on Small Business' Priorities in Australia

Australians head to the polls in a federal election on May 21. Small Business Association of Australia CEO and Founder Anne Nalder discusses what Australia's small businesses are looking for from the next government. She speaks on "Bloomberg Daybreak: Australia" with Haidi Stroud-Watts and Kathleen Hays. (Source: Bloomberg)

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