It seems the Abbott government's promised small business package can't come soon enough.
A new report shows that small firms are bracing for a tough 2015 and are feeling more pessimistic than their larger counterparts.
The Australian Chamber of Commerce and Industry small business survey showed firms experienced painful trading conditions during the December quarter and are expecting a fairly grim next 12 months.
"Small businesses are the backbone of the Australian economy, and when they are under stress they are less likely to invest, innovate and create jobs," chamber CEO Kate Carnell said.
The survey showed the business conditions index fell to 45.7 points during the final three months of 2014 from 46.1 in the September quarter, staying below the 50-mark that separates growth from contraction.
The expected economic performance index fell to 44 from 46.3, its fourth consecutive quarterly decline and its third below 50.
Although sales revenue is expected to rise, profits, employment, overtime, investment and selling prices are also expected to remain under pressure, while wages and other costs are expected to increase.
Small businesses also identified business taxes and government charges as the biggest constraint to doing business.
"If all levels of government can ease the burden on small businesses, those businesses will be better placed to prosper," Ms Carnell said.
Prime Minister Tony Abbott again flagged his small business and jobs package that includes a tax cut when visiting a sportswear factory in Sydney on Monday.
He said it is one of a number of policies that will be announced before the May budget.
"Small business is where our creativity most flourishes. Small business is where jobs creation gets going strongest and quickest," he told reporters.
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