SMEs: The Forgotten Economic Force That Could Decide the Australian Election

SYDNEY, AUSTRALIA – 29 March 2025

As the federal election looms, a newly released white paper from the Media Precinct reveals that Australia’s small and medium-sized enterprises (SMEs) – which make up over 50% of national employment – have been largely sidelined in economic policy and may now emerge as the deciding voice at the ballot box.

Titled "Boom to Bust: The State of Australian Business and Consumer Confidence Ahead of the Federal Election", the report tracks three years of economic turbulence and lays bare the challenges facing SME leaders, who Media Precinct are naming as Australia’s silent swing vote.

With nearly 363,000 businesses closing in 2023–24 alone, and many SMEs operating without cash reserves, the paper argues that business owners are carrying the burden of rising costs and weak consumer demand with little meaningful support from either side of politics.

“SMEs are not just the backbone of the economy – they are now the potential tipping point in this election,” said Glenda Wynyard, lead researcher and Managing Director of The Media Precinct. “They employ more than half of Australia’s workforce, and they’re increasingly frustrated by being talked at, but not talked to.”

Key Findings from the White Paper

🔹 SMEs make up 50.5% of national employment, yet have received minimal targeted support since the pandemic recovery began.
🔹 362,893 businesses exited the market in 2023–24, with hospitality and retail among the worst-hit sectors.
🔹 28.7% of jobs are in small business; 21.8% in medium-sized business – making SME stability critical to the economy.
🔹 Rising operational costs have forced many business owners to cut their own pay or dip into personal savings.
🔹 Government initiatives, such as $325 energy rebates and a $20k instant asset write-off, have been welcomed but widely seen as insufficient.
🔹 Business sentiment remains in decline, and insolvencies are now above pre-pandemic levels.

A Vote That Can No Longer Be Ignored

Despite their central economic role, SME owners report being overlooked in policy design, while larger corporations and households receive greater attention. The report warns that failure to adequately support SMEs – who are deeply embedded in both metropolitan and regional communities – may cost candidates crucial seats.

“For years, this voting bloc has been politically underestimated,” said Glenda Wynyard. “But in marginal seats across the country, the owners of cafés, salons, gyms, construction firms, family farms and service industries are simply fed up – and they’re ready to vote for whoever truly shows up for them.”

The white paper calls for a new policy agenda that goes beyond one-off rebates and short-term tax tweaks – instead delivering long-term certainty, reduced regulatory burden, and access to capital that allows small and medium businesses to grow, employ and invest.

Election Implications: A Wake-Up Call for All Parties

With both Labor and the Coalition pitching divergent economic visions – one focused on wage growth and household support, the other on tax relief and deregulation – SME leaders are uniquely positioned to swing the vote.

The full report, "Boom to Bust", urges policymakers to engage directly with SME communities and treat them as core economic stakeholders, not collateral damage.

“This isn’t about handouts,” said Wynyard. “It’s about a seat at the table. The party that listens to small and medium business will unlock a powerful, motivated, and deeply connected voter base.”

🔹 SMEs make up 50.5% of national employment, yet have received minimal targeted support since the pandemic recovery began.
🔹 362,893 businesses exited the market in 2023–24, with hospitality and retail among the worst-hit sectors.
🔹 28.7% of jobs are in small business; 21.8% in medium-sized business – making SME stability critical to the economy.
🔹 Rising operational costs have forced many business owners to cut their own pay or dip into personal savings.
🔹 Government initiatives, such as $325 energy rebates and a $20k instant asset write-off, have been welcomed but widely seen as insufficient.
🔹 Business sentiment remains in decline, and insolvencies are now above pre-pandemic levels.