Aussies are the only traders safe from inflation hit: Henry Research

The negative effects of inflation are doing nothing to discourage Australia’s 1.5 million solo traders, with new research showing that three quarters (75%) are happy in their profession.*

latest Henry Soul Trader Pulse – the only nationwide survey of self-employed people in Australia – found 68% enjoy the freedom of independent earning and 56% have a good work-life balance.

This positive attitude comes despite economic pressures, as higher interest rates and rising prices mean 75% of sole traders are paying more for supplies and services in the past three months, up from 70% in March 2023. While 63% are either eating into their savings or investing less.

In the face of economic uncertainty, sole traders feel they have three options: cut costs, raise their rates, or work more hours. A majority (72%) are actively trying to save on business expenses due to skyrocketing prices, which is set to continue through June 2022.

However, far fewer are able or willing to raise their prices (just 28%) compared to this time last year (56%), as many fear it will drive away customers or is beyond their control. As a result, 28% are working more hours to cover costs, meaning sole traders are under more time pressure than ever.

Karan Anand, Managing Director Henry Australiacommented, “It is undoubtedly tough for the self-employed, however self-starters have the necessary skills, mindset and resilience to take on the challenge with confidence.

“Although there are variations, overall we are seeing more solo traders feeling positive about the year ahead (45%) than last year (38%), with only 15% feeling pessimistic. Also, the majority (56%) feel secure in their jobs and their financial security, with more than half (57%) reporting solid personal satisfaction and happiness from self-employment.

“The results tell us that the personal freedom, self-reliance and lifestyle benefits that come from working for yourself mean Australian sole traders are ready to roll up their sleeves and weather the storm.”

Henry’s The survey shows sentiments differ across the country, as just over half (48%) of New South Wales-based solo traders feel their financial performance has been good over the past year, compared to just over a third (36%) in Queensland. ) and only 29% believe that their financial performance has been good in the past year. % in Victoria. Similarly, 65% of New South Wales solo traders feel good when it comes to financial security, compared to 57% in Queensland and 46% in Victoria.

High levels of tax and financial governance are also posing a challenge to Australia’s self-employed, as the average sole trader spends a full working day (8 hours) per week on their financial matters – an increase reported over the past three quarters. One hour more than what was done. This is especially high for trades (10 hours) and advisors (9 hours).

Anand said, “More than ever, time is money for sole traders. Losing one day per week on financial administration, as well as spending an average of $348 per month on tax and financial matters, is taking their money and attention away from what really matters – excelling at their jobs.

“These lost hours equate to a staggering $28 billion in lost productivity every year. As the economic outlook remains uncertain, it is more important than ever for solo traders to get the support they need to unlock the sector’s full potential, whether through tax exemptions or additional tax relief.

“While freeing sole traders from the burden of financial administration, Hnry also exists to help bridge this gap – empowering independent earners to pursue their dreams, build sustainable businesses and focus on achieving economic success.” empowering for.”

The Henry Soul Trader Pulse is Australia’s only regular, comprehensive regular snapshot that assesses the sentiments of self-employed people such as traders, freelancers and consultants in Australia. visit for more information hnry.com.au/au/soletraderpalse,

,The survey was commissioned by Hnry and carried out by Resolve Strategic to measure the sentiments, views and experiences of sole traders in Australia. In June 2023, Resolve Strategic conducted an online quantitative survey interviewing over 500 solo business owners with ABNs, including contractors, consultants, freelancers, gig economy workers, and merchants. The survey is nationally representative.