By Jay Westbury
Three interest rate reductions by the Reserve Bank and a pick-up in private sector activity in the general economy have created the backdrop for one of the most hopeful Christmas trading periods in recent years.
While it is clear that some sectors continue to do it tough, such as the sit-down restaurant segment, it seems the worst of the cost-of-living crisis may be behind us.
As RBA Governor Michele Bullock put it recently the nation is facing “quite a positive situation’’.
“Private sector activity is recovering a little more rapidly than expected in the bank’s August forecasts. In particular, private consumption is picking up as real household incomes rise and measures of financial conditions ease,’’ the Governor said.
While everyone would like another interest rate reduction to add to the three already delivered this year, the RBA’s decision not to cut at its meeting on September 30 is evidence of resilience in the economy.
Let’s hope there are no international shocks and that the return to better times is sustained after a tough five years punctuated by the COVID-19 pandemic, the inflation outbreak and persistent geopolitical uncertainty.
The better outlook is of course unequivocal good news for the Franchising Sector and the nation’s 2.6 million small businesses which contribute $590 billion to the economy and employ more than 5.4 million people.
With that in mind the Franchise Council of Australia is delighted that responsibility for small business was returned to Cabinet after the May 2025 Federal Election with the appointment of Dr Anne Aly as Small Business Minister.
Dr Aly will drive the Federal Government’s National Small Business Strategy and the FCA is uniquely placed and willing to assist given that our members are almost exclusively small businesses people, and we deal with the “real world’’ issues faced by our members every day.
We support efforts to improve coordination across government to reduce barriers and create an environment where small business – including franchises – can continue to innovate and grow.
We were also heartened by Dr Aly’s remarks, soon after she was appointed, that small business can’t be an afterthought and must be top of mind when major policies are formulated.
Like all sectors, small businesses continue to have trouble finding qualified staff in some disciplines and markets and efforts to increase national recognition of qualifications are welcomed.
Another looming policy decision that will have an impact on small business is the RBA’s review of credit card surcharging and bank interchange fees. Any decision in this space must ensure that the interests of small businesses are not sacrificed at the altar of economic rationalism.
If a decision is made to outlaw credit card surcharging, the RBA must ensure that it is not at the expense of small business margins. It must also ensure that any changes to interchange rates and credit card scheme fees doesn’t lead to a reduction in interest free periods which are often relied upon by small businesses to manage cash flows.
The other debate that appears certain to continue is around working from home, particularly given the Victorian Government’s intention to legislate on the issue.
There is no question that the nature of work has changed permanently in the wake of the pandemic and advances of technology.
But it is equally clear that each individual business has its own approach to the issue. For some small businesses, working from home is not an option. Lawn mowers need to be physically present to mow lawns, plumbers cannot unclog drains from home and hairdressers need to stand at their chairs to cut hair.
However, for a myriad of other operations, it is possible for employees to contribute constructively to workplaces remotely at no detriment to the business.
It seems each business I speak with has a different answer on how to handle remote working and working from home and that is as it should be.
Small business owners are best placed to know how best to run their businesses and retain their staff.
With this in mind any government intervention in this area should be careful not to interfere the with ability to manage their businesses in their best interests as they see fit.
The FCA remains highly engaged across a range of issues impacting upon small business and more broadly franchising and will continue to make a constructive contribution to the public policy debates across government and the opposition.
About FCA CEO – Jay Westbury
CEO Jay Westbury brings over two decades of experience in leading peak industry bodies, including his previous roles as CEO of Retail Drinks Australia (formerly Australian Liquor Stores Association) and the Australian Travel Industry Association (formerly Australian Federation of Travel Agents). Both sectors have close ties to franchising, giving Jay a deep understanding of the unique challenges and opportunities within this industry.