Almost half of Aussie businesses are being forced to cut back on employee shifts, offer more work-from-home days and stop hiring as skyrocketing fuel costs squash under-pressure margins.
New data from Business NSW reveals 47 per cent of employers are now reviewing staffing levels and working hours as rising fuel and freight costs begin to flow through to jobs.
The findings, based on responses from more than 630 businesses, lay bare the scale of the pressure.
The fuel crisis has reached an inflection point for businesses. (iStock)
A striking 84 per cent say the crisis is already affecting their operations, while 37 per cent report a significant or severe impact.
For employees, the consequences are already taking shape.
Almost one in three businesses have reduced staff hours or income, while 35 per cent say workers are increasingly anxious about job security. Meanwhile, 19 per cent report that staff are requesting additional work-from-home days to reduce fuel costs.
The data points to mounting strain, particularly in regional areas where transport costs are harder to absorb.
Business NSW CEO Daniel Hunter said businesses are being pushed into difficult decisions.
“When costs spike this quickly, cutting working hours or jobs for staff is the last thing employers want to do. But sometimes, there is no other option,” he said.
Operators say they are absorbing rising fuel, freight and supplier costs while also facing weaker consumer spending – leaving little room to manoeuvre.
The pressure has sparked renewed calls for government intervention, with a focus on easing payroll tax for regional businesses.
New South Wales currently has a payroll tax rate of 5.45 per cent, among the highest nationally, with a threshold that has remained fixed at $1.2 million despite rising wages.
More than 3,600 NSW businesses have collapsed since July 2025. (iStock)
The difference is stark when compared interstate. A NSW business with a $4 million wage bill would save about $110,000 each year if based in regional Victoria.
Hunter said businesses are calling for urgent action to prevent further job losses.
“We are hearing clear, repeated requests for immediate relief, including certainty of diesel supply, action on price gouging, temporary fuel tax relief, and targeted payroll tax relief to protect jobs before businesses start closing,” he said.
The warning comes as insolvencies rise sharply.
More than 3,600 NSW businesses have collapsed since July – a 21 per cent increase on the previous year – with the state now recording more failures than Victoria and Queensland combined.
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