Although the Federal Government is a massive part of the Canberra economy, the private sector is critical to the future of the ACT. Two-thirds of the jobs here in the ACT are in private sector firms, and a thriving business sector is essential to ensuring that Canberra continues to be a vibrant city.

So, how is it going? The Canberra Business Chamber has begun a quarterly survey of business sentiment. The results of the inaugural Canberra Business Beat survey are just out – and show that, overall, most businesses here in the Capital are doing okay. Six in 10 (61 per cent of) Canberra Business Chamber members report that they hit their targets for the last quarter; and 43 per cent are feeling positive about current business conditions.

These results are positive – and are consistent with a local economy that has recorded a staggering 33 years of economic growth. However, the experience is mixed (some hospitality and retail businesses are really struggling); and the outlook is more uncertain, with just 46 per cent of businesses expecting to grow over the next year.

Higher interest rates, increases in wage rates, rents, rates, and continued challenges in attracting and retaining workers are all factors contributing to this uncertain outlook. The Federal Government’s move towards beefing up the public service and reducing the use of private sector consultants is also contributing to a sense of uncertainty, reflecting the importance of both the consultancy sector to Canberra, as well as the importance of the Federal Government as a client.

While business performance, and the outlook, are relatively positive, I think the real question is: how can we do better as a business sector?

Regulatory red tape is a fact of life for anyone in business. Paying GST and superannuation payments, complying with Federal employment law are important, but take time and can create real headaches because of the complexity of getting it right. Here in the ACT, there are also Territory-specific rules to contend with, and a third of businesses that operate cross-border say they think it’s harder to do business here than in other states. There are specific regulations here that add cost not found elsewhere – portable long service leave for some sectors; higher payroll taxes; well-meaning but costly and badly targeted health and safety rules. All this is well-intended but can make it harder to run a successful business.

Overall, things are going okay for businesses here in the ACT. A lot of firms are profitable, they are employing people, and keeping the economy ticking over. But how much better could it be if we get the policy settings right?