4  SEPTEMBER 2025

 

BUSINESS ILLAWARRA BACKS PUSH TO REVIVE BUSINESS CONNECT, CALLS FOR BIPARTISAN REFORM ON WORKERS’ COMP

 

Business Illawarra has welcomed the Opposition’s pledge to reinstate the Business Connect program and ease payroll tax pressure but is urging urgent bipartisan action to fix the state’s broken workers’ compensation system before more businesses are forced to close.

 

Business Illawarra Executive Director Coralie McCarthy said regional businesses need practical solutions and certainty.

 

“Business Connect is the only free, tailored advisory service available to small businesses in NSW. It should never have been cut, and its return would be strongly welcomed by business owners across our region,” Ms McCarthy said.

 

“Since its introduction in 2017, the program has helped more than 60,000 small businesses and created more than 40,000 jobs. Restoring this program would make an immediate difference to business confidence, especially in regional NSW. Locally, I have a stream of businesses contacting me with passion and real case studies about how their business was supported by this service. At one of the hardest times for small business, support and mentoring has never been more critical.”

 

However, Ms McCarthy urged all sides of government to see the challenges of the cost of doing business calling out for payroll tax reform commenting the current system is suffocating small business growth:

 

“Every day I’m speaking with businesses that are being choked by payroll tax. Some are actively downsizing just to avoid the crippling costs. It’s cutting small business off at the knees and it’s limiting our region’s ability to grow, innovate and employ,” she said.

 

“We need fairer settings that allow businesses to get on with creating jobs — not punish them for success. Lifting the threshold is a simple and fair place to start.”

 

However, Ms McCarthy stressed that the most urgent priority remains fixing the workers’ compensation system.

 

“Today at our Business Forum, small business gave personal examples of how the system is failing them. One in five businesses we surveyed said they would be forced to shut if premiums keep rising unchecked. That is an unacceptable risk to our economy and our communities,” she said.

 

“This is not a partisan issue — it’s an economic necessity. Both sides of politics must act swiftly and together to deliver a fair and sustainable workers’ compensation system. The time for debate is over. If we don’t fix this now, more businesses will close and more jobs will be lost.”

 

Ms McCarthy said today’s forum was an important opportunity for local business leaders to engage directly with the state Opposition.

 

“It’s encouraging to see the Opposition here in the region listening to the real challenges faced by regional businesses. But business is clear: we need action, and we need both political parties to work together on solutions that will last,” she said.

 

 

Media Contact 

 

Coralie McCarthy 

Director, Business Illawarra

M: 0417 431 564

E Coralie.McCarthy@businessnsw.com

 

 

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About Business Illawarra

 

Business Illawarra is the region’s peak business organisation; a not-for-profit advocacy group dedicated to the economic development of the Illawarra, Shoalhaven and Southern Highlands. On behalf of our members, we develop policy and are the leading voice representing business across the region. 

 

Business Illawarra is owned and supported by Business NSW, the state's leading advocacy voice for business across NSW. Of the few enduring, independent, not-for-profit organisations in Australia, Business NSW is the only one focused on the wellbeing of the business community. Our purpose has always been to provide a strong advocate to all levels of government on issues affecting businesses, undertake research to guide greater public and private sector investment in economic infrastructure, and support the development of workforce capacity and skills in our region.