Australia’s small and medium sized enterprises continued to develop within the December quarter, with development the standout contributor.
MYOB’s newest information reveals that SME efficiency rose an extra 1 per cent over the quarter and three per cent over the yr.
The expansion was largely pushed by the development sector, which rose 3 per cent over the quarter and 5.3 per cent yearly, marking its strongest lead to three years. The sector accounts for round 23 per cent of SME GVA and drove roughly 45 per cent of whole SME development final yr, offsetting softer consumer-facing circumstances.
In accordance with MYOB, a significant catalyst was the enlargement of the house assure scheme, which eliminated caps on first dwelling purchaser help and lifted earnings limits. These modifications triggered a surge in residential development and renovations, with tilers, plumbers, electricians, painters and landscapers reporting sharp will increase in workload.
As well as, the $16.5 billion infrastructure dedication within the 2024/25 Federal Price range progressed from bulletins in mid-2024 to full SME engagement all through 2025.
The information additionally reveals that development added almost 8000 employees over the yr, whilst general SME employment edged down. Productiveness positive factors and easing prices helped shield margins.
“Development SMEs are central to housing and infrastructure supply, and their efficiency has helped maintain general SME development constructive,” stated MYOB CEO Paul Robson.
“If infrastructure and housing pipelines stay in place and companies proceed investing in productiveness, we count on SMEs to keep up a cautiously constructive trajectory, even with rates of interest remaining larger for longer.”
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