AMP Bank GO Index reveals small business costs have jumped almost 25% since COVID… and look set to rise further.
The inaugural AMP Bank GO Small Business Cost Pressure Index shows the weighted cost of keeping a small business open has risen from 100 in March 2020 to 124.6 by March 2026.
AMP Bank GO Director John Arnott said the Index was created to help Australians understand the pressure facing the businesses they rely on every day.
“Australia has more than 2.7 million actively trading small businesses – from cafes and salons to local retailers, sole traders and tradies.
“Behind the price of a coffee, haircut or call-out is a long list of costs most customers never see – wages, rent, power, fuel, insurance, tools, packaging and payment costs.
“We created this Index to help consumers see those hidden pressures more clearly, at a time when households and small businesses are both under pressure.
“Small businesses are caught in the middle. Their own bills keep rising, but their customers are watching every dollar. Many have absorbed as much as they can, but there comes a point where those costs have to show up somewhere.”
The costs rising fastest
The AMP Bank GO Small Business Cost Pressure Index, modelled by AMP’s Economists, measures the key costs faced by most small businesses to stay afloat. The costs have been weighted to reflect their overall significance. Since March 2020 these costs have increased across the board, including insurance, which has risen by more than 50%.
- Insurance: up 52%
- Fuel: up 38%
- Interest costs: up 36%
- Electricity: up 26%
- Rent: up 23%
- Wages: up more than 20%
AMP Deputy Chief Economist Diana Mousina said many small businesses remain under pressure, even if headline inflation eases.
“While inflation has come down from its peak, many small business costs remain high.
“That creates a difficult balancing act, especially when margins are already tight and consumers are feeling their own inflationary pressure and are increasingly price sensitive.”
About the AMP Bank GO Small Business Cost Pressure Index
The Index tracks changes in a weighted basket of common small business operating costs. It is designed to show cost pressures facing small businesses across Australia.
Read the AMP Bank GO Small Business Cost Pressure Index
For many small businesses, especially labour-reliant businesses such as cafés, salons, trades and services, wages are the largest single cost. The Index therefore gives wages the greatest weighting (50%), while also accounting for other key expenses. It shows that even when fast-rising costs such as insurance and fuel are given more proportionate weights, the cost of running a small business has still risen materially since COVID.
John Arnott added:
"Small businesses are being squeezed from every direction. Rising wages, insurance, energy, compliance and supplier costs are all adding pressure at a time when many owners are reluctant to pass those increases on to customers.
"Behind every small business is an owner making difficult decisions every day about staffing, investment and their own financial future. The pressures we're seeing in AMP Bank GO’s Small Business Cost Pressure Index aren't isolated – they're being felt by businesses right across the country.
"Our cashback offer is about recognising the realities facing small business owners today. Many are dealing with rising operating costs, tighter margins and increasing uncertainty, while continuing to support local jobs and communities. We know there’s no single solution to these challenges, but we want to do our little bit to help ease some of the pressure.”
AMP Bank GO’s cashback for small businesses
To help ease some cost pressure, since 1 July AMP Bank GO has been offering new small business customers 10% cashback, up to $300 back, until 31 August on eligible business purchases. The offer is putting money back into business cashflow as costs escalate.
Visit our website to learn about the offer.
Cashback offer details
This offer is available to new Australian business customers with a valid ABN or ACN who open a new AMP Bank GO Everyday Business Account and have not previously held one. Customers can earn 10% cashback on eligible transactions made using an AMP Bank GO Everyday Business Debit Mastercard between 1 July and 31 August 2026, capped at $300 per customer. Eligible transactions must be settled purchases made for legitimate business purposes. Excludes cash withdrawals, gambling transactions, foreign currency and crypto purchases, and personal or non-business expenses. See full details online, including T&Cs.
The product issuer and credit provider is AMP Bank Limited ABN 15 081 596 009, AFSL and Australian credit licence 234517