Annastacia Palaszczuk’s small business legacy after almost nine years in power

Queensland Premier Annastacia Palaszczuk will stand down at the end of the week, ending a nearly nine-year tenure in the top job while closing a complex chapter in the state government’s relationship with its 473,000 small businesses.

Reflecting the sprawling and diverse nature of the state and its businesses, Palaszczuk championed startup support funding and, along with the federal government, funneled millions towards SMEs that suffered through pandemic lockdowns.

However, a staunch approach to the state’s border closure rattled businesses reliant on tourism and trade, and a recent slide in electoral popularity, has shaded her premiership.

Early years

Palaszczuk became premier in early 2015 after a remarkable election swing against the incumbent Liberal National Party allowed Labor to form a minority government.

She assumed leadership during a period of business sector pessimism: small business survey data showed considerable concerns over low consumer confidence and a sluggish jobs market.

In its first budget under Palaszczuk, the Labor government unveiled its $40 million Business Development Fund.

It offered matched investment contributions of up to $2.5 million to help small businesses commercialise their early-stage ideas.

It would be one of the first initiatives in the Palaszczuk government’s attempts to turn Queensland into a national hub for innovative startups and tech leaders.

The next year, the Palaszczuk government pledged $22.7 million to a program enticing small businesses from across Australia to pull up stumps and relocate to the Sunshine state.

It was part of the broader Advance Queensland initiative, which was injected with $405 million in funding.

Elsewhere, $8 million in funding was earmarked for a program intended to lure international startups to Queensland.

The government also eased some financial burdens for existing SMEs, by doubling the payroll tax rebate for workplaces employing apprentices and trainees.

2016 also saw the creation of Queensland’s Small Business Champion role, a conduit between the private sector and the state government.

The role, initially filled by businesswoman and information industry expert Maree Adshead, filled a gap left by the abolishment of Queensland’s small business commissioner office in 2012.

Queensland also launched its bid for Brisbane to hold the 2032 Olympic games — a bid which would win come 2022, with the Palaszczuk government hailing its potential economic benefits for small businesses and startups.

Second election and sour business sentiment

2017 brought the controversial normalisation of retail trading hours across the state.

Some small business representatives feared the reforms would allow major retailers — many of which were blocked from opening early on weekdays, Saturday evenings, and on Sundays — from muscling out small business operators.

The year also held a state election, which saw Palaszczuk’s Labor retain power while gaining seven seats in the process.

The following year brought a state commitment to streamlining procurement from small businesses, and a pledge to pay suppliers faster.

The 50% payroll tax rebate for eligible small businesses was also extended in the 2018-2019 state budget.

Those measures alone did not stoke business sentiment.

In the December quarter of 2018, the Suncorp-CCIQ Pulse Business confidence survey showed optimism among SME leaders had fallen to levels not seen since early 2015.

While not a direct reflection of the Palaszczuk government’s performance, the data did unveil business concerns over state and federal Labor’s approach to the mining sector at the height of debate over the Adani Carmichael mine.

“Respondents expressed frustration particularly around a perceived preoccupation with first-world issues and lack of political will to expedite the expansion of the resources sector in Central Queensland,” the report found.

Labor was battered at the 2019 federal election, with post-poll autopsies suggesting Queensland voters saw a potential Bill Shorten government as opposed to mining developments, limiting job growth in regional Queensland.

Federally, the Morrison Coalition government approved Adani Carmichael, and in early 2019, Palaszczuk moved to expedite state-based approvals.

The mine began exporting coal in 2022.

The pandemic years

Perhaps Palaszczuk’s premiership will be remembered for her government’s handling of the world-historic COVID-19 crisis.

Before mass vaccination, the state endured a number of short, sharp, and disruptive lockdowns to protect residents from potential COVID-19 infection.

The first month-long lockdown started on March 30, 2020, and the last days-long lockdown occurred in South-East Queensland from July 31, 2021.

Like other jurisdictions, the state government provided financial support to small businesses forced to close their doors or limit their trade as a result of those lockdowns.

However, the toll of Queensland’s extended border closure, particularly with its southern neighbour New South Wales, was significant for businesses in the region.

The federal and state government announced a $53.8 million support package for businesses along the NSW-QLD border in September 2021, before the border reopened in December.

Palaszczuk described the package as a “lifeline for a number of businesses doing it tough right now,” but Queensland’s Ombudsman heard numerous complaints from those whose livelihoods were affected by border restrictions.

While extremely tough for businesses, particularly those along the border, in the tourism sector, and those reliant on in-person trade, the state government was steadfast in its approach to public health restrictions.

1,757 people died from COVID-19 in Queensland as of January 2023, a figure the state’s chief health officer noted was “very low by global standards”.

It would not be the only disaster Palaszczuk faced in her tenure: massive flooding through 2022 incapacitated many small businesses, which were subject to joint state and federal recovery grants.

Palaszczuk stood down after a series of grim poll results for Labor, and during a national cost-of-living crunch that has many businesses echoing the same broad concerns they aired before the pandemic.

One final legacy of the Palaszczuk years awaits for small businesses: the 2032 Brisbane Olympics, which the government claims will provide significant economic benefits for the state.