Australian Small Businesses Get New Financial Literacy Taskforce
Synopsis
A new taskforce will develop better financial education and support for Australian small businesses after research found many owners struggle to understand their profits.
Australian small businesses are set to get a financial education boost, after research found more than one-third of business owners were not confident about their finances in the last month.
The task force met for the first time today at Parliament House in Canberra, with representatives from small business, finance, education and the political sector. Throughout the coming months it will run workshops and report back to parliament with recommendations for policy changes, with reports expected early in 2027.
The Financial Fitness research was commissioned by accounting software company Xero, and conducted by external agency One Picture between March and April 2026, with 750 small business decision makers and 500 accountants and bookkeepers surveyed.
Confidence and financial knowledge diverge
The survey found a large disparity between the confidence of business owners in their own financial knowledge, and the assessment of that same knowledge by accountants and bookkeepers.
Of those surveyed, 85% of business owners were confident about managing finances, compared to 90% of accountants and bookkeepers who said business owners did not have the skills to manage business finances.
When asked 10 basic business finance questions, only 37% of business owners answered all questions correctly. Only 32% of owners said they were regularly paying themselves a wage, and over one-third had used publically available artificial intelligence tools for business advice.
Of the 95% of accountants and bookkeepers surveyed, they felt small businesses were being misled about finances.
Small businesses are the backbone of the economy, representing a huge portion of Australian businesses. According to the Australian Business Register, at June 2025 there were 2,656,469 small businesses employing fewer than 20 people. This constitutes 97.3% of the 2,729,648 businesses actively trading in Australia.
Business turnover and closures add context
According to the Australian Bureau of Statistics, during 2024-25 there was a near-equal number of business formations and business closures, with 437,150 businesses formed and 370,500 businesses closed, a net increase of 66,650 businesses. For the year, the ABS reported a business formation rate of 16.4% and a business closure rate of 13.9%.
The task force will also review financial education at an entry level, including in school education. Small Business Minister Anne Aly said that government, business, advisers, and the community would need to work together to develop resources for small businesses.
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
