Rising Costs Cast Shadow Over Queensland Small Business Month

With Queensland Small Business Month fast approaching in May, regional communities across the state are preparing to celebrate and support local enterprises. However, for many businesses in the Hinchinbrook Shire, the reality is far from festive, as rising costs continue to place significant pressure on operations.

Mary Brown, President of the Hinchinbrook Chamber of Commerce Industry and Tourism Inc., highlighted the mounting challenges facing local businesses, amplifying concerns about the future of their operations, employees and the wider community.

“Currently, as a result of the impacts from the Iran conflict and rapidly escalating costs of almost everything—most significantly fuel and fertiliser—our community is facing exceptionally challenging business conditions,” Ms Brown said.

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Business conditions have been further strained by two interest rate rises in 2026, falling global sugar prices, and upcoming nationwide changes, including new merchant fee regulations taking effect in October and the abolition of junior pay rates for 18–20-year-olds in retail, fast food and pharmacy. Ms Brown also noted businesses had reported sharp local cost increases, with freight rising by 50 per cent and essential materials, such as building products, increasing by 30 per cent in recent weeks.

“All of these factors are decisions made by other parties that directly impact businesses—their capacity to employ staff and even remain sustainable,” she said.

Cassowary Coast Regional Council Mayor Teresa Millwood also acknowledged the growing pressure on businesses, highlighting the close link between fuel costs and the broader economy.

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Fuel underpins freight, tourism, agriculture and trades, and when prices rise or supply tightens, the impact flows directly into the cost of doing business and the cost of living.

“Right now, one of the biggest pressures on our small businesses is rising operational costs, further impacted by uncertainty around fuel. In regional areas, that hits hard,” Mayor Millwood said.

She added that businesses are not only dealing with fuel pressures, but also rising interest rates, soaring insurance and operating costs, workforce shortages, and the ongoing impacts of natural disasters.

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“In regional communities, those challenges are amplified. We travel further, rely more on transport, and have fewer alternatives,” she said.

“Our small businesses are incredibly resilient, but right now, they’re being stretched from every direction—and they shouldn’t have to carry that alone.”

Earlier this year, conversations within the local business community focused on growth and opportunity, but in recent weeks the discussion has shifted towards survival and sustainability as uncertainty continues.

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“Ordinarily, Queensland Small Business Month would be an ideal opportunity for businesses to network, engage in professional development and share knowledge,” Ms Brown said.

“However, in the current environment, this year may require a rethink, with a stronger focus on practical support and helping business owners navigate their pathway forward.”

Hinchinbrook Shire Mayor Ramon Jayo reinforced the importance of small businesses to the region.

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“Small businesses are the backbone of our local economy, employing local people, supporting families, and keeping money circulating within the community,” he said.

“Beyond their economic contribution, they help define the character of our towns—they sponsor local sporting clubs, support events, and provide essential services that keep our communities connected and resilient.”

Mayor Jayo said initiatives like Queensland Small Business Month can play an important role, particularly when supported by practical, locally tailored measures that extend beyond a single month.

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Mayor Millwood said the region urgently needs stronger, more targeted support, including continued investment in infrastructure, reduced red tape, workforce development and funding to help businesses grow, recover and innovate.

“We need support that truly reflects the realities of regional communities,” she said.

“We’d also like to see strong partnerships where State Government works alongside councils and local industry to deliver solutions tailored to regions like ours, because the future of the Cassowary Coast is about building a strong, sustainable economy—and that takes all levels of government working together.”

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Ms Brown echoed the call for leadership and long-term policy certainty.

“Since the weather event in February 2025, the Queensland Government has provided invaluable support across many sectors affecting almost every aspect of our community,” she said.

“During this incredibly difficult time, the business community needs assurances from all levels of govenment that they have a clear plan to guide the nation forward and that they recognise the vital role small businesses play in the broader economy.”

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As Queensland Small Business Month approaches, the message from regional communities could not be clearer; celebration alone isn’t enough, and meaningful, sustained support will be critical to ensuring small businesses can weather the challenges ahead.

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