http://www.news.com.au/business/small-businesses-see-bleak-outlook/story-fn7mjon...

PROFITS for Australian small businesses are at a record low and confidence is plummeting, according to a new survey.

Half of Australian small businesses experienced a decrease in profitability during the latest quarter, while just two in 10 posted an increase.

There was also an increase in small businesses looking to close or sell their firms.

The Sensis Business Index report's author, Christena Singh, said profitability among Australian small businesses fell sharply during the quarter and businesses were expecting further falls over the next 12 months.

"The profitability indicator is now strongly negative and this is the weakest profitability result we've seen in the 18-year history of the report," Ms Singh said.

"While there are marked differences across the nation, all states and territories recorded negative profitability indicators this quarter."

Today's survey follows the last such report in June finding business confidence was at its lowest level since the global financial crisis, due to weak consumer spending and an uncertain economic outlook.

The retail sector again experienced the weakest profitability during the quarter.

Australian Retailers Association executive director Russell Zimmerman said yesterday that shop workers' penalty rates should be cut, at a Productivity Commission inquiry into the sector.

Retailers could not compete if they had to pay employees time-and-a-half on Saturdays and double-time on Sundays, he said.

For the coming quarter, profitability was expected to be lowest in the manufacturing and the building and construction sectors, the report found.

Other performance measures such as sales, profitability and capital expenditure were strongly negative, wages and prices remain in positive territory and employment was flat.

On the positive side, Ms Singh said many small businesses were resilient and taking proactive measures.

She said 42 per cent of small businesses planned to introduce new products and services during the current financial year, 38 per cent expected to increase their digital presence and 35 per cent looked to increase their sales force.

The quarterly survey is based on a sample size of 1800 businesses (one to 199 employees) from metropolitan and regional areas.

And this is the fault of the government how exactly? Because i'm SURE you have a reason, beyond an a priori assumption that everything bad is the fault of the government. For instance, it obviously can't be anything to do with the high Aussie dollar, or the economic shockwaves that are reverberating around the globe? No, obviously its the carbon tax that hasn't even been legislated yet!!