Survey shows rising SME costs, shifting politics, and tighter household budgets
New Zealand small and medium-sized enterprises are grappling with rising costs and mixed views of the Coalition government’s performance, as the latest MYOB NZ Annual Business Monitor highlights mounting pressures amid weaker business confidence, stubborn inflation, a building oil shock, and a patchy regional recovery.
The nationwide survey of 1,026 SME owners and operators shows dissatisfaction with the government’s overall performance (35%) now exceeds satisfaction (33%), while 31% are neutral. Views on how the Coalition is handling SME issues are also split, with around two in five saying current settings are working well, and a majority indicating key concerns are not being addressed effectively.
That sentiment is closely tied to financial strain: overheads have climbed by an average of $1,200 per month in the past year, while combined insurance premiums now average $1,800, and are up more than $3,200 for medium-sized firms.
MYOB chief executive Paul Robson (pictured) said that “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.”
Robson added: “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.”
Against this backdrop of higher costs and softer confidence, brokers are operating in a system that still appears broadly sound. Recent Reserve Bank analysis indicates the financial system remains resilient, with banks well placed to support viable borrowers even if conditions soften.
Clear SME wishlist for budget and election
Looking ahead to the 2026 budget, SMEs prioritise measures that reduce everyday friction and support investment. Top asks include reinstating the ACC No Claims Discount for small businesses, simplifying health and safety compliance, and lifting the current $1,000 Low Value Asset Write-Off to a permanent $10,000 Instant Asset Write-Off. There is also strong backing for a higher provisional tax threshold, action on insurance affordability, and energy bill relief via tax rebates.
Robson said that “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,” with business owners set to watch the budget and election platforms closely for targeted SME policies.
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