business
Sydney Business Trends: Low Sentiment, Support Cuts and Fee Relief Shape Outlook
NSW business confidence has fallen sharply while the City of Sydney removes some outdoor dining costs and one local startup secures fresh capital.
How we reported this
Business sentiment in New South Wales has sunk to -78, the lowest confidence level since March 2020 during the pandemic, following major federal tax changes.
Declining Confidence Levels
This reading reflects broader pressures on local operators after the tax shifts. Firms in Sydney are operating against a backdrop of reduced optimism that has not been seen at this depth since the height of pandemic restrictions.
End of Business Connect Program
The NSW Government has axed funding for the Business Connect program, ending free expert advice for small businesses and startups on 30 September 2025. Without this channel, operators must now identify paid or alternative sources for the guidance previously available at no cost.
Outdoor Dining Fee Waiver
The City of Sydney has permanently waived all footpath and on-road outdoor dining fees across the municipality. This change removes a recurring expense for hospitality businesses that use public space for seating, providing a direct reduction in operating costs within the local government area.
Startup Funding Success
Sydney-based customer-experience startup Lorikeet raised $5 million in a seed round backed by Square Peg and Atlassian co-founder Mike Farquhar for its AI operations. The round shows that selected technology ventures continue to attract capital even as overall sentiment remains weak.
Corporate Asset Sales
Construction giant Lendlease is accelerating its global exit by selling UK assets into a joint venture with The Crown Estate. The move forms part of a wider portfolio adjustment that may influence supply chains and project pipelines affecting Sydney-linked operations.
Businesses should review their advisory arrangements now that the Business Connect program has closed and factor the City of Sydney fee waiver into cost planning. Monitoring further capital raises in the technology sector and corporate restructuring announcements can help operators anticipate shifts in their own markets.