Business confidence in Victoria has nosedived.

State of Victoria 

In 2011 two thirds of Victorian businesses felt the Australian economy was on an upward curve, or had plateaued at the top of the curve.


In 2012 the proportion feeling this way has dropped by half to 33 percent, the largest fall of any state or territory. Nearly 62 percent think the economy has entered a downward phase of the cycle.

Among Victorian respondents, 48.5 percent failed to meet their revenue targets over the past 12 months. Only 11.8 percent exceeded their targets. Looking ahead, 14.7 percent of Victorian businesses predict negative growth in the current year, the highest negative outlook across the country. Nevertheless 44.9 percent of respondents feel their revenue growth will be up to five percent higher in the present period while 25 percent think it will be higher still.


A lack of consumer and business confidence is ranked the major current challenge for Victorian businesses. Continuing global economic uncertainty and competitor activity are other prominent concerns.


Thirty-nine percent of Victorian businesses expect to increase their headcounts in the current year, which is down from 56 percent in 2011. However, 17 percent intend to cut employee numbers compared with just 11.5 percent in 2011.


Favoured priorities for the state government include infrastructure development, reform of state taxes and charges, reduced regulation and healthcare reform.



Figure 1: Perceived position of Australian economy in economic cycle


Figure 1

Figure 3: Employee headcount over the past 12 months


Figure 3

Figure 2: Fulfilment of revenue targets for the latest 12 month period


Figure 2

Figure 4: Employee headcount intentions for the next 12 months


Figure 4


Video: Private Companies Survey 2012

Video: Private Companies Survey 2012
KPMG's National Managing Partner of Private Enterprise, Peter Siebels, gives an overview of the findings from the Private Companies Survey 2012.

Full report

Private Companies Survey 2012 in PDF

Download a copy of the Private Companies Survey 2012 in PDF.