Accounting industry body CPA Australia has warned that the interest rate rise to 4.1 per cent will have an impact on many small businesses – particularly those heavily reliant on fuel.
With fuel prices surging, inflation remaining stubborn across essential goods and services, and consumer confidence weak, households and businesses face a perfect storm of rising costs and weakened resilience.
CPA Business and Investment Lead Gavan Ord said fuel-reliant businesses are already feeling the pain, with transport, trades, logistics, agriculture, and regional operators among the hardest hit.
“These businesses are feeling bruised by higher fuel costs that are flowing through every part of their operations,” he said.
“Fuel isn’t optional – it’s fundamental – and when prices spike, costs rise immediately with very little room to hide.
“For many small businesses, fuel is now one of their largest and most volatile expenses. Combined with higher interest rates and persistent inflation, it’s making an already difficult situation worse.”
Gavan said the latest rate rise hits at a time when confidence across the economy is already low.
“Households are pulling back, businesses are losing confidence, and yet costs keep rising,” he said.
“This rate increase adds fresh pressure just as many were hoping for some relief.”
For small businesses dependent on transport and mobility, the impact is being felt daily.
CPA Australia said the economic pressure highlights the urgent need for long-term reform to improve business sustainability.
“Short-term relief won’t fix a system where small businesses are burdened by high costs, excessive red tape and uncertainty,” Gavan said.
“What is needed is decisive action to cut unnecessary regulation, lift productivity and restore confidence.”
Gavan urges businesses and households under strain not to wait before seeking advice.
“In conditions like this, early decisions can make a positive difference,” he said. “Accountants help businesses manage cash flow, plan for volatility and navigate heightened financial risk.”
