Townsville CBD business The Wine Bar fights closure after its revenue plunges

Townsville businesses remain resilient, but they're operating in an increasingly challenging environment. Over the past six months we've seen a raft of changes and cost pressures including Pay Day Super reforms, Working Holiday Visa changes, increases to modern award wages, rising insurance and energy costs, higher fuel prices, ongoing interest rate pressure and the credit card surcharge ban.

Our members are consistently reporting a decline in discretionary spending as households tighten their belts and become more cautious with their purchasing decisions. The survey findings mirror what we're hearing on the ground, with customers delaying purchases, spending less and shopping around for the best deal.

Businesses have absorbed significant additional costs in a relatively short period, and the prospect of another interest rate rise before Christmas will only add further pressure to both businesses and consumers.

Regional businesses are resilient and will continue to adapt, but the Federal Government needs to understand that businesses in cities like Townsville are doing it tough. Policy decisions need to be made with regional Australia in mind, not just Canberra and the capital cities. If we want strong regional economies, governments must better recognise the unique challenges facing businesses on the ground in places like Townsville.