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The Canberra Times
The Canberra Times
Lanie Tindale

'Backbone of the economy' at risk without urgent budget support

"Small businesses are the backbone of the economy and ... most of them are struggling at the moment," Mohmmad Khan says.

Mr Khan opened his latest shop, Tuggeranong Kebabs, in February. In only four months, the United States and Israel started a war with Iran, fuel prices skyrocketed and interest rates have increased.

This is all in addition to post-COVID pandemic inflation, and housing pressure squeezing budgets.

Mohmmad Khan, owner of Tuggeranong Kebabs, says any cost-of-living relief or measures to reduce expenses for Canberrans in the upcoming ACT budget would provide a welcome boost for small businesses. Picture by Keegan Carroll

"People are being, understandably, very careful with how they spend their money," Mr Khan said.

"Maybe they're just choosing not to indulge as much, they are just occasionally spending on takeaway food."

More public servants are working from home in winter months, potentially trying to save on fuel costs.

"Our lunch rush has ... halved in the last couple of months," Mr Khan said.

The business owner hopes the upcoming ACT 2026-27 budget, which will be announced on Wednesday, June 10, will offer Canberrans relief.

"If people have those allowances or relaxations ... they are more likely to spend that money in a small business locally," he said.

According to the Australian Bureau of Statistics, computer system design, management consultant, and commercial property operations businesses, courier pick-up and delivery and house construction industries employ the most people.

A survey by the Canberra Business Chamber found more business owners were positive about the future at the end of December, 2025 compared to the middle of the year.

The organisation said in a submission to the ACT budget they did not want to see any more increases to rates, levies or taxes.

The 2025-26 budget saw increases to rates, new taxes and higher prices for a wide range of government services as the ACT reported a record debt of more than $1 billion.

Further payroll tax changes will begin from July 1, 2026, increasing the tax for companies spending more than $1.75 million in wages Australia-wide.

Chief executive of ACT Master Plumbers Joe Prevedello wants apprentices to be exempted from payroll tax calculations.

Mohmmad Khan. Picture by Keegan Carroll

"That would demonstrate to businesses from the government that they're doing a public service in training the next generation of apprentices," Mr Prevedello said.

"We always need businesses to be taking on apprentices and it'd just be tragic if they thought, 'well, we're not actually going to take on another one because it's too expensive and we're going to have to pay extra payroll tax.'"

Mr Prevedello also wants funding to help the plumbing industry transition during the gas phase-out period, and to crack down on dodgy plumbers.

"The government's decision to close down the natural gas network will have an unprecedented and very, very large impact on the plumbing and gas fitting sector," he said.

"Up to half of what the typical Canberra plumber does on a daily or weekly basis relates to gas fitting connected to the natural gas network.

"We believe to date there hasn't been enough input garnered from the government, from the plumbing and gas fitting industry, with regards to creating policy change that will help the industry transition of the government's policy to get rid of gas."

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