It has been a tough year for Australian small to medium enterprises (SMEs) and with Christmas rapidly approaching they will be desperate for some much-needed assistance in time for 2026.
As the holiday season approaches, SMEs aren’t looking for gifts; they’re looking for relief from the issues that have been weighing on them all year.
The good news is there’s some hope on the horizon, with the latest ASBFEO Small Business Pulse reporting a 0.8 per cent lift in the three months to November 2025, marking the third quarter in a row of improvement.
Over the past 12 months it has increased just 0.5 per cent and according to the Australian Small Business and Family Enterprise Ombudsman, Bruce Billson, there is tailwind building for small business growth and transformation.
For Chief Executive Officer of leading working capital specialists Earlypay, James Beeson (pictured), this uptick needs to be maintained and coming into the festive season said there were a number of ways to ensure the positive sentiment continues.
Beeson said the Christmas wishlist for SME owners would include:
1. Clarity and support ahead of Payday Super changes
From 1 July 2026, employers will need to pay superannuation every payday instead of quarterly. While the reform aims to protect workers, it will significantly increase the cash-flow and administrative load for small businesses, especially those running tight weekly cycles or relying on quarterly buffers.
SMEs are looking for clearer guidance, fair transition arrangements, and practical support to upgrade payroll systems before the change hits. Many also want the ATO to take a measured approach to enforcement in the early months to avoid accidental non-compliance penalties.
2. A stable rate environment SMEs can plan around
After a brief run of cuts, the Reserve Bank has parked the cash rate at 3.6 per cent and is now signalling it may have to hold – or even lift – rates again if inflation doesn’t behave.
For small operators still digesting pandemic debt, higher commercial rents and increasing business costs, genuine and sustained rate relief, along with a clear path back to something that feels “normal”, would finally give them room to plan, hire and invest again.
3. Less red tape, clearer workplace rules
Over the past 12 months, small businesses have faced a rolling wave of industrial relations changes – from new “right to disconnect” obligations to shifts in casual employment rules, wage-theft laws and minimum wage increases.
Most don’t object to fair pay or work–life balance; they object to needing a law degree to work out if they’re compliant. Their Christmas wish: a regulatory clean-up that simplifies awards, provides plain-English guidance and stops moving the goalposts every few months.
4. Stable geopolitics and smoother supply chains
From conflicts in Europe and the Middle East to tensions in the Asia–Pacific, geopolitics has kept wholesale prices and shipping costs jumpy. That’s flowed straight through to inventory costs, stock shortages and long lead times for everyone.
This Christmas, small businesses are wishing for something they can’t control: a calmer global backdrop and more predictable freight costs.
5. Fairer access to working capital that reflects how SMEs actually operate
SMEs aren’t asking for shortcuts, they’re asking for lending settings that recognise the day-to-day realities of small business. Traditional banks remain cautious, often assessing applicants on outdated criteria that overlook strong customer relationships, growing sales and solid receivables.
On the wish list is a more practical approach to funding that includes recognition of different forms of business strength, not just property backing. A system that better reflects how SMEs trade would give more operators access to the working capital they need to manage volatility and pursue growth.
While it may not be as big as a Christmas grocery list, Beeson believes there’s many more but “they’d happily take real movement on any of the above issues especially as the future still points to an uncertain 12-months ahead”.
