Businesses demonstrate resilience despite cost pressures, regulatory burdens, market uncertainty

Businesses in the New England North West continue to demonstrate resilience despite mounting pressure from rising costs, regulatory burdens and market uncertainty, according to the latest Business Conditions Survey from Business NSW.

The region’s business confidence index improved from -52.0 in quarter one to -38.5 in quarter two, outperforming many other parts of NSW and showing greater optimism about the road ahead.

However, New England North West still remains below the state-wide confidence average of -50.8, signalling a cautious recovery.

Confidence for the next quarter sits at -34.6, indicating the region’s comparative resolve in navigating economic headwinds.

Top challenges identified by New England and North West businesses include:

• Insurance and government charges: Insurance remains a top cost concern, followed by taxes and levies—mirroring broader statewide concerns.

• Hiring pressures: While regional businesses are holding staffing levels steady, 27 per cent across the state reported cutting staff in the past three months.

• Energy transition barriers: Local operators highlighted fuel and electrification costs as ongoing challenges, particularly for businesses operating across large geographical areas.

• Access to housing and skills: Businesses in the region are calling for stronger investment in housing availability and training pathways, with these ranking above tax reform as government priorities.

Diane Gray, regional director for Business NSW in the New England North West, said their members are doing it tough, but they are far from defeated.

“The slight lift in business confidence this quarter tells a story of quiet determination from business owners who are adapting, adjusting, and holding the line despite unpredictable costs and workforce shortages,” Ms Gray said.

“While rising insurance premiums and a broken workers’ compensation system continue to squeeze margins, businesses are asking for reform, not rescue. They want governments to tackle red tape, modernise regulatory settings, and support long-term skills and infrastructure solutions in our region.”

Across NSW, over one-third of businesses reported insurance hikes of more than 30 per cent in the past year, with 45 per cent stating they would cut staff if workers’ compensation premiums increase as proposed.

These impacts are even more pronounced in regional areas where margins are tighter and overheads, such as energy and freight, are higher.

Business NSW is calling on the NSW government to urgently:

• Pass workers’ compensation reforms to ease unsustainable cost burdens.

• Accelerate Emergency Services Levy reform to reduce insurance premium loading.

• Prioritise housing and skills initiatives in the upcoming State Budget to support regional workforce attraction and retention.

“The New England North West has the talent, grit, and potential to lead regional economic renewal,” Ms Gray said.

“With the right policy signals and targeted investment, our local businesses will continue to drive growth, employment, and innovation across NSW.”