Rising Wages May Force More Australian Business Owners to Sell
New workplace laws that started this week could force many small business owners to sell their businesses before they lose too much money.
On 1 July 2026, Australia’s National Minimum Wage went up from $24.95 to $26.44 an hour. Other minimum award wages also went up by 4.75%. At the same time, a new rule called “payday super” means bosses must now pay their staff’s superannuation on the exact same day they pay their wages.
Experts say these combined changes will raise running costs overnight, especially for businesses that employ a lot of staff and already make very low profits.
The Profit Squeeze
Mary Tamvakologos from the business-for-sale website AnyBusiness AU says many owners have spent years dealing with rising costs for rent, insurance, and supplies. This new wage increase might be the final straw. “Every business owner wants to pay their staff fairly,” Ms. Tamvakologos said. “But small businesses do not have unlimited money to cover another jump in costs. In industries like hospitality, retail, and building, wages are the biggest expense. When profits are already low, even small wage rises can hurt a business badly.”
She explained that these rising costs are changing when owners choose to close or sell.
“Some owners will decide it is no longer worth running the business. Others will realize they need to sell right now, before their profits drop. Buyers look very closely at how much money a business makes. If your profits drop over the next year, your business will be worth much less when you try to sell it.”
Which Businesses Are Most at Risk?
According to AnyBusiness AU, the businesses facing the most pressure right now are:
• Cafes, restaurants, and takeaway shops
• Retail stores
• Hair and beauty salons
• Childcare, aged care, and disability care providers
• Cleaning businesses
• Trades and builders with multiple workers
• Factories with large workforces
What Business Owners Should Do Now
Instead of panicking, experts say owners should use the next few weeks to see exactly how these changes will affect them.
Owners are encouraged to:
• Check their wage budgets and staff costs.
• Update their cash flow plans.
• See if they need to raise their prices.
• Talk to an accountant about their profits.
• Get a professional business valuation if they want to sell in the next few years.
“The biggest mistake we see is owners waiting until they are already losing money before they try to sell,” Ms. Tamvakologos said. “By then, buyers will notice the lower profits and offer less money. Finding out what your business is worth today gives you better options.”
Credit: Mary Tamvakologos, Director of Operations at AnyBusiness AU https://www.anybusiness.com.au/
