Why legalising same-sex marriage makes economic sense for small businesses

If same-sex marriage is legalised in Australia, experts say the economy could receive a $161 million boost within the first three years. SBS Finance Editor, Ricardo Goncalves speaks with some of the small businesses that would likely benefit.

Economics of gay marriage

Source: Ricardo Goncalves

As the government attempts to assist small businesses with its recent tax incentives, there's no denying marriage equality could complement those gains.

Professor Lee Badgett from the University of Massachusetts has studied the economic gain of same-sex marriage across the world, including Australia. She says the economy could stand to generate at least $161 million in the first few years of marriage equality.

"That's probably a conservative estimate. There's probably a lot more gay couples than what your Census bureau counts," Professor Badgett told SBS. 

"People tend to spend more and more on weddings over time as inflation rises, that's a pretty low estimate I think."

The 2011 Census counted about 33,700 same-sex couples in Australia which represents one per cent of all couples.

"In the US we used to see that about half of same-sex couple would marry in the first couple of years. I actually think that is turning out to be too low.

"Here in the States we have this odd quirk where states would recognise same-sex marriages and the federal government did not until two years ago. Once the federal government started recognising same-sex couples, even more couples got married in those states"

Massachusetts was the first US state to legalise same-sex marriage in 2004.

"We surveyed same-sex couples and found that they spend about $US7,500 on their weddings and when we added all that up, we found that in just the first five years in Massachusetts, the state economy had a boost of $US111 million."

Professor Lee Badgett said American same-sex couples generally earned less than different sex couples. But according to the Australian Bureau of Statistics, same-sex couples in Australia tend to be more highly educated, have higher labour force participation rates, and have higher personal incomes than opposite-sex couples.

That may suggest higher wedding spend and that's good news for the small business which stand to benefit for marriage equality.

Frank Farrugia - Same Love Photography

Frank Farrugia
Source: Ricardo Goncalves
Mr Farrugia has been a photographer for more than 10 years, but noticed a gap in the market to service lesbian, gay, bi-sexual and intersex clients. 

He set up his business Same Love in 2012.

"It doesn't matter if you're gay or straight, this brand of photography is all about being inclusive and it's just about love and there is no gender associated with that," Mr Farrugia said.

He already does pro bono work with Australian Marriage Equality leading to shoots with Australian icons like Kylie Minogue, but said Ireland's recent Yes Vote on Gay Marriage is sparking further interest here.

"I get about at least one inquiry a week from a gay and lesbian couple that they're having a civil ceremony with a celebrant and are having the reception, having the party."

If same-sex marriage is legalised, Mr Farrugia said he would have to hire editors and more contractors to keep up with demand.

Chelsea Abraham - Bespoke Catering

Chelsea Abraham
Source: Ricardo Goncalves
Ms Abraham has travelled the country and the world refining her skills in the catering world.

She set up her business Bespoke Catering earlier this year.

"I currently service corporate, private clients, a lot of DINKS (double income no kids)," she said.

Ms Abraham says she's currently run off her feet, and employee numbers fluctuate depending on the kind of work available.

But she expects to put on even more workers if same-sex marriage is legalised, which would change her business for the better.

"I think there is a lot of potential there," Ms Abraham said. "If [same-sex marriage] does go ahead, I think a lot more people are going to be open to getting married, and I think that is going to benefit my business."

Melissa Soncini - Celebrant

Melissa Soncini
Source: Ricardo Goncalves
Ms Soncini has been a marriage celebrant for seven years because she, as puts it, she "loves love".

"I marry on average around 100 couples a year, and most of those are heterosexual couples."

Of all her services, 85 per cent are different sex couples. But Ms Soncini said there is increasing interest from same-sex couples wanting commitment ceremonies compared to five years ago.

She believes Ireland's referendum vote on gay marriage has also made a difference. 

"What Ireland has done for us, which I think is amazing, is get the conversation started. People are not afraid, they know that the laws will change, they have to change. So they are reaching out to wedding suppliers - me especially - and saying, 'Can we do this now? Can we make it legal now?'" Ms Soncini said.

If gay marriage is legalised, Ms Soncini believes there'll be a surge of same-sex couples wanting to get married in Australia. 

"I think we've got a time when people come from overseas for Mardi Gras, I imagine there'll be lots of weddings perhaps on a float at the parade, or around that time when they've organised their summer holidays in Australia."

 


Share
5 min read

Published

Updated

By Ricardo Goncalves
Source: SBS

Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world