The majority of small business owners are earning less than their own employees, according to new data from the Australian Small Business Ombudsman. Key points Two in five small businesses made no profit according to new report The data shows three-quarters of small business owners made below-average wages Business owners say they are struggling to find staff The Small Business Matters report shows 43 per cent of small businesses are making zero profit, the worst rate since 2012. About 75 per cent of small business owners earned less than the average Australian wage, despite working longer hours. Queensland cafe owner Phillip Di Bella said he had worked in hospitality for 34 years but had never seen such rapid rises in the cost of doing business. Mr Di Bella owns the Coffee Commune, a coffee industry network focused on cafe sector innovation, including ways to develop the required skills base. “This is the first time I’ve seen everything go up at once ” interest rates, utilities, gas, wages, insurance, everything’s gone up,” Mr Di Bella said. “The last thing we need is government overreach, extra red tape, added laws that don’t make sense, and pressure on business owners when they’re just treading water.” The report notes 98 per cent of all Australian businesses are classified as small businesses. Brisbane Kenji Sato Mr Di Bella said one particularly onerous regulation was restrictions on 457 Visa holders, which meant they could only work up to 24 hours per week. Student visa work restrictions were relaxed during the pandemic and completely removed in January 2022, allowing student visa holders to work more than their normal limit of 40 hours per fortnight to help with worker shortages. That ended on June 30, and as of July, students can only work 48 hours per fortnight while studying. Mr Di Bella said this made workers even more scarce at a time when businesses were already struggling to fill their rosters. Chewie Choo says there are plenty of jobs. Brisbane Kenji Sato Chewie Choo, who owns the Mitch and Antler cafe in Mitchelton, Queensland, said two of his best baristas were forced to have their hours slashed because of the new regulations. “They’re good people. They’re good at what we do, everyone loves them, they’re a right fit for our business, but now we can only give them 24 hours per week,” Mr Choo said. “There’s plenty of jobs going around, and I think the skills shortage overseas has been a problem for us.” Simon Bayley, owner of Grenof, estimates he has spent 18 out of 25 years earning less than his own employees. Small businesses struggling to survive Small businesses struggle with low consumer spending and increased operating costs. The Brisbane business owner said in some years, he earned next to nothing, and during the boom years, he was “punished” with high taxes. “When I have a good year, I end up paying more tax than anyone I know, and the banks make it almost impossible for me to expand,” Mr Bayley said. “Our entire system is designed to stomp on entrepreneurs and small businesses, and that system is encouraged by both sides of government.” Australian Small Business Minister Julie Collins said the Albanese government was introducing a raft of packages to help small businesses. “We are delivering for small businesses right across Australia with new measures, helping them to bounce back from challenges and improve their long-term resilience,” Ms Collins said. “These new small business measures include targeted energy bill, cash flow support and initiatives to build their resilience to cyber security attacks.” The report notes 98 per cent of all Australian businesses are classified as small businesses, with 93 per cent having a turnover of less than $2 million. Small Business Ombudsman Bruce Billson said only 8 per cent of small business owners were under the age of 30, compared with 17 per cent in the 1970s. Mr Billson said Australia depended on small businesses, but fewer people were finding it an attractive career path. “We need to replenish and nurture the next generation of entrepreneurs,” Mr Billson said. “We need to understand why it is not as appealing as it perhaps should be for younger Australians to own a small business.” Loading… If you’re unable to load the form, click here . Brisbane in your inbox Get local news, stories, community events, recipes and more each fortnight. Your information is being handled in accordance with the Privacy Collection Statement . Email address Subscribe