The June 2026 Survey of Business Conditions and Sentiments was sent to around 2,700 Australian businesses and found that an increasing number of businesses were reporting higher costs.
Industries with high fuel dependence were more likely to report rising operating expenses, including agriculture, forestry and fishing (72 per cent), manufacturing (55 per cent), accommodation and food services (55 per cent), and transport, postal and warehousing (49 per cent).
ABS head of business statistics, Tom Lay, indicated that more businesses had reported increased costs.
“Data from today’s Survey of Business Conditions and Sentiments, shows that while the pressure from fuel prices had eased, there were more businesses that had noted higher costs.”
Speaking with Accounting Times, Lay was asked how businesses are responding to higher costs, particularly regarding pricing and expense absorption.
“In June 2026, 44 per cent reported that they were absorbing cost increases, making it the most common response and broadly unchanged from what we observed in the May survey,” Lay said.
“Around 15 per cent of businesses reported increasing their prices in response to higher fuel costs and lower availability.”
“This was most evident in fuel-intensive industries, including transport, postal and warehousing, wholesale trade, retail trade, and construction, where fuel costs form a significant component of operating expenses.”
As previously reported, broader fiscal pressures on Australian businesses have persisted even after the recent rate hold, with ongoing cost increases and weakening revenue conditions weighing on sentiment and planning decisions.
This ongoing strain highlights the challenges businesses face in balancing operational expenses amid tightening economic conditions.
In professional, scientific and technical services, 84 per cent cited business overheads as a driver of higher costs, up 29 percentage points from the previous month, ABS found.
Around 13 per cent of small businesses said they required financial or advisory assistance, and 36 per cent expected to seek support over the next four weeks.
“Looking forward, around one third of businesses in information media and telecommunications, administrative support services and accommodation and food services all expect revenue to fall in the next four weeks,” Lay said.
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