OnDeck Australia research shows cost of living concerns are the main driver shaping voting preferences for 8 in 10 small business owners.
- 85% of small business owners cite cost of living pressures as the key issue that will shape their voting preferences.
- Over one in two (52%) small business owners point to energy prices as a key vote decider.
- Three in five (61%) small business owners say rising costs are the top issue they would like to see addressed in the upcoming Federal election.
Research by leading small business lender OnDeck Australia has shed light on the key issues driving the voting preferences of Australia’s small business community.
Topping the list of concerns is the cost of living and inflation cited by 84% of small business owners (refer Chart 1).
One in two (54%) point to rising energy prices. A further 52% say government support for small business will determine who they vote for.
Lesser concerns include interest rates (44%), government spending and national debt (33%), and immigration policies (31%).
Small business owners don’t just allow commercial issues to shape their voting preferences. Broader household concerns including healthcare funding (55%) and housing affordability (54%) will also decide which party gets the vote of small entrepreneurs at the ballot box.
Chart 1 – The issues shaping small business owners’ voting preferences
Source: OnDeck Research (Note: Survey respondents were able to select multiple options)
Mr Cameron Poolman, CEO of OnDeck Australia, says, “Australia’s 2.5 million small businesses[1] form a significant voting bloc. The concerns of our most entrepreneurial Australians cannot be ignored by either side of politics.”
The top issues small businesses would like to see addressed
OnDeck’s survey asked small business owners about the chief issues they would like politicians of all persuasions to address in the upcoming Federal election.
The overwhelming issue, cited by 61% of small business owners, is rising business costs such as soaring energy prices (as shown in Chart 2).
Three in five (60%) small business owners would like to see a reduction in tax rates. One in two (51%) are keen to see interest rates fall, and one-third of small business owners would like to see an expansion of the instant asset write off (IAWO).
Chart 2 – The top issues small business owners would like to see addressed
Source: OnDeck Research (Note: Survey respondents were able to select multiple options)
Mr Poolman notes that the Labor government’s latest Federal Budget offered very little in the way of small business cost relief.
“The Labor government is extending energy bill relief for six months to the end of 2025, which is expected to see around one million eligible small businesses receive up to $150 in rebates directly off their bills[2].
“However, $150 is a drop in the ocean at a time when energy costs are already high – and expected to rise by between 4.2% and 8.2% for many small business[3],” said Mr Poolman.
According to Next Business Energy[4], the average small business in Australia spends between $5,000 to $20,000 per year on electricity, depending on their size and industry:
- Small Retail Shops: $5,000 – $10,000 per year
- Cafes and Restaurants: $10,000 – $15,000 per year
- Manufacturing Businesses: $15,000 – $20,000 per year.
Instant Asset Write-Off to be extended under Labor
In regards to tax cuts, Mr Poolman noted, “We understand that tax cuts could have an inflationary impact that may just push interest rates higher. But we agree with one in three small business owners who would like to see an expansion of the Instant Asset Write-off (IAWO).”
The IAWO in its current form encourages small businesses to invest in their own productivity by allowing businesses with turnover below $10 million to immediately deduct the cost of assets up to $20,000, rather than depreciate them over time.
“This investment is critical to building a stronger small business sector,” said Mr Poolman. “The Labor government has pledged to extend the IAWO for another 12 months to 30 June 2026 if it wins the election[5]. However, this commitment falls short of the Coalition’s pledge to offer a permanent $30,000 instant write-off[6].”
With voters heading to the polls in just a few weeks, OnDeck believes both sides of politics would do well to consider the needs of the small business community.
Mr Poolman said, “We know that 98% of Australian businesses are small businesses[7], and together they employ over five million people – about 42% of the private sector workforce[8].
“Any government who overlooks the small business community at election time does so at their own peril,” concluded Mr Poolman.
About the Research
Independent research was conducted online in March 2025 by Octopus Group, surveying over 500 Australian business owners on behalf of OnDeck Australia.
Sources
[1] https://www.asbfeo.gov.au/small-business-data-portal/number-small-businesses-australia
[2] https://budget.gov.au/content/06-economy.htm
[3] https://www.aer.gov.au/news/articles/news-releases/default-market-offer-dmo-2025-26-draft-determination
[4] https://nextbusinessenergy.com.au/blog/average-electricity-bill-for-small-businesses/
[5] https://alp.org.au/news/more-tax-relief-for-small-businesses-under-labor/
[6] https://www.liberal.org.au/2025/03/26/labor-heads-to-election-with-new-small-business-tax-increase
[7] https://www.asbfeo.gov.au/small-business-data-portal/number-small-businesses-australia
[8] https://www.asbfeo.gov.au/small-business-data-portal/contribution-australian-employment
