Businesses increasingly dissatisfied with government due to rising costs, survey says

Small and medium-sized businesses are becoming increasingly dissatisfied with the government ahead of this month's budget as rising costs and a weak economic outlook eat away at confidence.

MYOB's Annual Business Monitor indicates 35 percent of more than 1000 SME owners and operators surveyed were dissatisfied with the coalition government, outnumbering those who were satisfied (33 percent), with 31 percent remaining neutral.

The survey indicated businesses were under pressure from increasing overhead costs, which were up an average of $1200 per month, while insurance premiums rose an average of $1800 in the past year or by $3200 for an average medium-sized businesses.

"At the beginning of this year, our insights suggested most SMEs were starting 2026 more hopeful about their prospects and backed by relatively stable revenue and cashflow, but rising costs and recent increasing uncertainty may have clouded over some of the growth ambitions we saw coming through," MYOB chief executive Paul Robson said.

"These factors, as well as a slower-than-anticipated economic recovery, can often shape some of the sentiment by businesses around the support available to them."

SMEs voting intentions

Despite satisfaction dipping, the coalition parties maintained a clear majority of support from SME operators.

By political party, National was still the first choice among business owners, with 37 percent of those polled expecting to vote for the party at this year's general election, while coalition partners - NZ First and ACT - each had 11 percent support.

Support for opposition parties had seen some grown, with 20 percent of SME decision-makers intending to vote for Labour (up 5 percent), while the Greens improved slightly to 4 percent.

Support for the Opportunities Party was two percent, while Te Pāti Māori had one percent support.

"We have seen some movement in voting intentions compared to the run up to the last election, and just over one-in-10 SME decision-makers are undecided about their vote," Robson said.

"Given the size of the SME community in New Zealand, that is still a significant number of votes to compete for and overall, business owners will be looking for practical policy platforms that deliver targeted support where it is most impactful."

SMEs said the top three actions the government could take to better support business this year were reducing compliance burdens, alleviating cost pressures, and supporting investment.

What SMEs want

• Reinstating the ACC No Claims Discount for small businesses (32%)
• Greater efforts to simplify health and safety compliance requirements (28%)
• Changing the current low value asset write-off of $1000 to be a permanent instant asset write-off of $10,000 (26%)
• Increase the provisional tax threshold (24%)
• Action to address insurance affordability for SMEs (23%)
• Energy bill relief via tax rebates (23%).

"While there is little doubt about the balancing act the current government faces in investing in the future of New Zealand business and managing existing debt levels, there is clear opportunity for practical support for local SMEs that will ease some of the load they are carrying day-to-day," Robson said.

"Business owners will be monitoring outcomes of the upcoming budget keenly to see what's in it for them, but looking further ahead to the election on the horizon, the parties that put forward credible, targeted policies for SMEs will strengthen their appeal to a segment that represents a significant share of the voting public."

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