Cost of doing business bites in SA

Tuesday 25 March, 2025

The Opposition has continued to hear heartbreaking stories from South Australian small business owners, who are grappling with soaring operating costs amid the cost-of-living crisis.

Today, Leader of the Opposition, Vincent Tarzia and Shadow Minister for Cost of Living, Heidi Girolamo, stood with Tammy Barker, Chief Operating Officer of Mitani Group, a food manufacturing business, who shared concerns about rising costs such as electricity and water.

“Our most recent power contract was 42 per cent higher than our last, that’s a huge increase to weather,” Ms Barker said.

“We’re in a fortunate position, we are a well-established family business with good governance and strategic planning and have worked hard to get to this point, but there doesn’t seem to be any relief in sight.

“When we have to spend more on things like insurance and power, it means we have less to invest in our business to innovate and grow. These conditions add to the stresses of running a business.”

Mr Tarzia said Premier Peter Malinauskas needs to take stronger action to support small to medium sized businesses in South Australia as they battle rising operating costs.

“Peter Malinauskas' blasé approach to lowering water and electricity costs is really hurting businesses across South Australia,” Mr Tarzia said.

“We have business owners approach us daily, telling us that rising operating costs mean they can no longer look at future investment because they have to solely focus on survival.

“What’s the Goverments plan to lower water and electricity prices for small to medium sized businesses now? Just a few weeks ago, they shelved the only energy-related policy they took to the last State Election – wasting what looks to be around $100 million of taxpayer money.

“The Opposition have already said we will fight to have South Australia as the first location for nuclear power if Peter Dutton is elected, but we are not the Government of the day – Labor is, and they have been flat-footed when it comes to delivering meaningful relief for South Australian businesses facing sky high operating costs.”

Shadow Minister for Cost of Living, Heidi Girolamo, added that the Australian Energy Regulator’s latest draft Default Market Offer also means small businesses will face a $355 increase to their bills as of July 1.

“There is no reprieve in sight for these hardworking South Australian business owners – not only do they have to endure a cost-of-living crisis at home, they also have to battle through a cost-of-doing-business crisis too,” Ms Girolamo said.

“We want to see businesses grow and stay here in South Australia, not have to close their doors because they can’t afford to keep water running, electricity on and staff on the floor.”