As we move through the final quarter of the 2026 financial year, business conditions remain complex, with ongoing geopolitical and domestic economic factors continuing to shape the operating environment.
The escalation of conflict between the United States and Iran is continuing to impact energy markets, supply chains, and broader business conditions, contributing to ongoing volatility in input costs and planning.
At the same time, interest rate settings from the Reserve Bank of Australia remain elevated, with the outlook for further movement continuing to influence borrowing decisions, investment timing, and cash flow management.
Businesses are now operating in a more dynamic environment, where conditions are shifting quickly and forward visibility is more limited than in previous periods. Encouragingly, a range of government support measures are in place, and we’re seeing many businesses adapting in disciplined and proactive ways.
Australian Government support available to businesses
In response to current economic pressures, the Australian Government has introduced a range of measures aimed at supporting businesses and easing cost impacts.
Recent and ongoing support includes:
- Interest-free fuel loans for fuel, fertiliser, and other critical supply chain businesses.
- A temporary reduction in fuel excise for a three-month period to 30 June 2026.
- The Heavy Vehicle Road User Charge reduced to zero for three months, with the next scheduled increase deferred by six months.
- Temporary relief for businesses experiencing difficulty meeting tax obligations due to fuel supply impacts, including tailored payment plans.
Learn more about support available.
Where businesses are focusing right now
It’s early days, but we’re seeing many businesses respond by taking a more cautious and adaptive approach to managing costs, cash flow, and future commitments.
Key areas of focus include:
- Cautious capital decisions (in some cases, deferring plans rather than cancellations).
- Heightened cash‑flow sensitivity, with some customers looking at fixed interest rates and possibly reviewing contracts with suppliers.
- Increased engagement with banks for scenario planning if the crisis is ongoing.
- Bulk buying of certain materials and supplies (particularly in the construction industry).
- Increased contingency allowances included in cost estimates and forecasting.
How we can support you
In a more dynamic environment, having the right support in place can make a difference. We can work with you to:
- Strengthen cashflow visibility through tailored insights, tools, and working capital solutions.
- Review your lending structure to ensure it remains aligned to current conditions and future plans.
- Provide flexible financing options to help manage cost pressures and variable expenses.
- Support forward planning with access to insights, sector knowledge, and regular check-ins from our experienced Relationship Managers.
- Offer flexible credit and contingency funding to help you respond to unexpected changes.
If you wish to discuss your current situation or plans, please get in touch.
Sincerely,
Darren O’Hara
National Head of Business Banking