Business confidence has plunged to its lowest level under Prime Minister Tony Abbott, despite the typically positive effect of a falling Australian dollar.
Confidence is at its lowest level since it bounced just before the 2013 federal election, according to figures from National Australia Bank.
"Where is the optimism from the decline in the Australian dollar?" TD Securities head of Asia-Pacific research Annette Beacher said.
"The Australian dollar slid from 95 US cents in early July to testing the lows of 86.50 cents three times in recent weeks - isn't this what businesses have been demanding for years now?
"Where is the brighter future with the lower Australian dollar?"
The lack of business confidence would remain a thorn in the Reserve Bank's side, Mrs Beacher said, given its interest rate settings were already doing all they could.
The NAB survey also showed business conditions in September had deteriorated dramatically from July.
"The multi-year high for business conditions in July appears to have been a flash in the pan, with the index falling for the second straight month," NAB chief economist Alan Oster said.
Business conditions were still well up on last year's averages, but below their long-run average, Mr Oster said.
"The effects of soft national income growth - a function of lower commodity prices, excess capacity and cautious spending behaviour - are being felt across the economy," he said.
Persistently soft operating conditions were dragging confidence lower, he said.
Talk from the RBA about curbing investor activity in the housing market had weighed on the construction industry, Mr Oster said.
UBS economists said the recent drop in the Australian dollar should provide more of a boost to conditions in the months ahead.
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