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SMEs in the two states have surged to the top of national rankings for projected business growth.
Small and medium-sized enterprises (SMEs) in Queensland and Western Australia have topped national revenue growth forecasts in the latest round of data released by non-bank lender ScotPac.
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According to the research, 84 per cent of SMEs surveyed in Queensland have forecast a jump in revenue in the period to March 2025, with only 9 per cent forecasting revenue decline.
Similarly, 84 per cent of SMEs surveyed in Western Australia have forecast positive revenue growth during the same period, with only 11 per cent forecasting a decline.
By comparison, just over half (59 per cent) of SMEs surveyed in NSW and less than a third (28 per cent) of the SMEs surveyed in Victoria projected positive revenue growth.
Across the nation, 56 per cent of Australia’s SMEs surveyed projected positive revenue growth in the next six months, up from 53 per cent in ScotPac’s last reporting period.
However, the data also showed a new high of 34 per cent of SMEs predicting falling revenue in the short term.
ScotPac will release the full data early November as part of its SME Growth Index.
Data from the report, comprising interviews of more than 700 SMEs conducted by research firm East & Partners, also showed how SMEs’ outlook differed between sectors, with SMEs in the mining sector remaining most positive, with average anticipated revenue growth of (5 per cent), followed by transport (3.5 per cent) and business services (2.5 per cent).
SMEs in construction and manufacturing were less optimistic, forecasting revenue growth of -6 per cent and -2 per cent, respectively.
Jon Sutton, ScotPac CEO, said the widening chasm in SME revenue projections reflected the diverse nature of the Australian economy.
“The net result is that the resilience and agility of Australia’s SMEs is again on full display, with a majority of businesses expecting a bounce in revenue to go hand in glove with anticipated falls in inflation and interest rates next year,” Sutton said.
“Whatever their situation, SMEs should talk to their brokers and advisers regularly about the growing range of tailored working capital options available to support their specific needs.”
State of the states
This data release comes as Western Australia and Queensland both claimed high rankings in CommSec’s State of the State report, which ranks state and territory economies based on analysis of key indicators.
Western Australia claimed the top spot due to its strong performance in retail spending, relative unemployment, and relative population growth, while Queensland jumped from fifth spot to third.
Ryan Felsman, CommSec chief economist, said: “Western Australia’s robust economic fundamentals, especially its low unemployment and strong population growth has fuelled nation-leading consumer spending, pushing the state to the top of the leaderboard for the first time in a decade.
“WA is well positioned for sustained future performance; however, the competition remains intense, particularly among the top three states with Queensland moving quickly up the rankings.”
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