Australian small to medium-sized businesses have pleaded with Labor for more energy rebates, as utility costs crush margins and fuel prices prevent projects getting off the ground.
Data from MYOB revealed that one in four businesses want new rebates and grants to help with energy usage as the Commonwealth rebates ended last year, adding to their struggles under this year’s fuel crisis.
Meanwhile, further data from the accounting software company revealed that the discontinuation of the rebates had a negative impact on 51 per cent of the businesses it polled.
A call for the rebates to be extended came from Sunny Bhasin, the director of Melbourne-based cabinet manufacturer Andave.
He stressed that “cash flow is king” for his 16-employee strong business that has struggled amid high fuel and energy prices recently.
“The word is that the end client is waiting and watching,” Mr Bhasin told SkyNews.com.au.
“In (the) building (and) construction industry, the cost is going astronomically over their budget so they’re wanting to wait until it can actually stabilise and then award the contracts.”
He stressed this was having a flow-on effect for Andave as business dried up due to hesitancy.
His call follows the Commonwealth’s Energy Bill Relief Fund ending on December 31.
This knocked a total of $800 off power bills for eligible small businesses between the middle of July 2023 and the end of last year.
Companies like Andave have large power costs that have been exacerbated by the fuel crisis.
Andave uses a large amount of energy powering its machinery, equipment and vehicles alongside heating, ventilation and cooling systems – much of which uses diesel.
Mr Bhasin said Andave has been absorbing costs from the fuel crisis but was struggling under the weight of the burden.
“With respect to the fuel situation, that is hurting us really, really badly,” he said.
“With the fuel prices, not only is it a direct hit in terms of our own fleet and the deliveries in the installation, but also our product pricing is actually going up.
“All our cost of goods (that are) sold has increased because the suppliers have increased their cost because they have been passed on the increased cost directly or indirectly through the suppliers as well.”
Meanwhile, MYOB’s survey revealed that 44 per cent of polled businesses said the cost of utilities will put pressure on them in the coming 12 months.
Sydney-based bar owner Dre Walters, who runs Old Mate’s Place in the city’s CBD, said the rising energy costs were a constant of running a business.
“(We’re) kind of crippled by the situation that we’re in in the world,” Mr Walters told SkyNews.com.au.
“But, what do you do? You just got to cop it.”
“The AGL bill goes up every sort of six months and there’s nothing you can do about it.”
To help alleviate the fuel crisis, Labor halved the fuel excise by 26 cents per litre for the three months to the end of June.
Australian tradies in early April called on the government to completely cut the excise when diesel prices were around $3 per litre.
Newcastle carpenter Heath Simmons told SkyNews.com.au that the fuel excise should be “completely cut”, while calling on the government to do more to increase Australia’s fuel capacity.
“I think the fuel excise should have been cut completely, not for good, but temporarily just until everything gets back to normal or if it ever does,” the carpenter said.