Small businesses fighting to stay open amid 'insidious cost creep'
Small business owners hit with rising costs will no longer be able to add surcharges on card payments from October 1. One operator in regional South Australia has described it as an "insidious cost creep".
Small business owners in rural and regional communities across Australia are grappling with the relentless rise in business costs, facing closure rates and rising payment defaults. Cafes, in particular, are bearing the brunt of this insidious cost creep. With the impending elimination of card payment surcharges starting October 1, many small businesses are resorting to cash-only operations or raising prices on certain items.
Francene Martin, owner of Retail Therapy, a clothing shop in Keith, expressed her despondency, stating that despite offering a 50% off sale, she made no profit. Similarly, Frazer Wyley, operations and social media manager at Prey cafe in Ballarat, highlighted the hidden struggle of small businesses, warning of the impact of EFTPOS charge changes.
Despite the Reserve Bank of Australia's estimate that the reforms would save businesses $910 million annually, small business advocates caution that the surcharge elimination could shift costs onto small businesses, given their already slim margins. While the margins in the cafe industry are razor-thin, often less than 10 cents per cup of coffee, cafe owners often resort to price hikes as a last resort.
Wyley urged customers to support small businesses by visiting stores and patronizing them, emphasizing the importance of community support to keep local shops alive.
Written by urgent.news from ABC News AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
