A new study from research and insight specialists, The Navigators, reveals that generative AI (gen AI) is fundamentally reshaping how Australians discover, compare and choose brands, forcing marketers and business leaders to rethink marketing strategies for reaching and influencing consumers.

The Navigators’ AI Brandscape 2026, one of the most robust studies of Australians’ use and relationship with AI tools*, reveals how gen AI is already embedded in everyday decision-making.

With 43% of Australians now regularly using AI tools and a further 20% having tried them, the research shows AI has rapidly shifted from an emerging technology to a mainstream tool influencing consumer behaviour, often before a brand’s website, app or retail environment is ever reached.

Key topline findings include:

• 38% of Australians now use AI as a complement or replacement for traditional search. 41% pay attention to AI-generated search summaries and 29% say they trust those summaries
• AI is already influencing purchasing behaviour, with 39% of Australians using AI to help make buying decisions, 31% acting on AI recommendations and 27% open to buying directly via an AI tool
• Among Australians who have used AI to help make purchasing decisions, AI most commonly helps consumers compare brands (80%), discover new options (72%), understand pricing (56%) and receive recommendations (48%)
• Among Australians who have used AI for buying decisions, AI-assisted purchasing spans both high-consideration and everyday categories, led by electronics & technology (18%), groceries (14%), health products and services (13%) and travel (12%)

Dean Harris, Director at The Navigators says, “Our research shows generative AI is no longer a fringe influence or aid for work or study, but a growing force shaping consumer behaviour. This new generation of Australian ‘AI Shoppers’ is already relying on these products to guide decisions across categories, with adoption only set to increase. For brands, the challenge is in understanding how trust and visibility are shaped inside these systems, and adapting their marketing strategies to ensure they stay relevant.”

AI & purchasing decisions

When Australians use AI to help make purchasing decisions, it is most commonly acting as a comparison and confidence-building layer to simplify decision making. Across categories, AI Shoppers say they use AI to:

• Compare brands and options (80%)
• Discover new brands or products (72%)
• Compare or understand prices (56%)
• Receive recommendations of brands or options (48%)
• Find where to buy a product (37%)

“This is a fundamental shift for brands,” says Dean. “AI is now actively shaping shortlists and recommendations, with consumers increasingly bypassing traditional funnel mechanics.

“As AI-enabled purchasing begins to emerge, marketers need to plan for a future where AI plays a direct role in buying decisions. In that world, visibility inside AI systems becomes critical at the moment of choice. Brands will win by how they show up there, not just through traditional channels.”

AI for shoppers across retail categories

Categories where Australians use AI to help make purchasing decisions include:

• Electronics & technology – 18%
• Groceries & everyday household items – 14%
• Health products and services – 13%
• Travel & accommodation – 12%
• Home appliances – 11%

Among Australians who are open to AI-enabled purchasing, openness is strongest in convenience-led retail categories, including:

• Groceries & everyday household items (13%)
• Electronics & technology (12%)
• Health products and services (9%)
• Travel & accommodation (8%)
• Restaurants, food delivery & takeout (8%)

“This data shows AI is no longer influencing retail at the margins, it’s shaping everyday purchasing decisions, particularly as consumers navigate cost-of-living pressures,” says Dean.

“As households look to save time and money, trust in AI tools is growing fastest in high-frequency categories like groceries and household essentials, before extending to more considered purchases. For brands, the implication is clear: if you’re not being surfaced and clearly explained inside these systems, you risk becoming invisible at the moment of choice.”

Gender differences in AI-driven purchasing behaviour

• Men are more likely to be regular AI users (50% of men vs 38% of women), meaning they are more likely to encounter brands and recommendations via AI tools earlier in the decision journey
• Women are more likely to have never used AI (38% of women vs 30% of men), indicating a slower overall entry into AI-assisted decision-making
• Among those who do use AI, women engage across a broader range of use cases, averaging more use cases than men, even though they are less likely to be frequent users

“What we’re seeing isn’t just different levels of AI use, but different decision-making pathways,” Dean says.

“As AI increasingly determines which brands are surfaced and trusted, men and women may be navigating entirely different brand landscapes – and brands need to understand those pathways if they want to influence choice.”

Trust and credibility in an AI-mediated customer journey

• 41% of Australians pay attention to AI-generated search summaries, indicating strong behavioural reliance
• Yet only 29% say they trust AI search summaries, highlighting a clear trust gap between use and belief

Dean says, “Consumers are using AI to guide decisions, but they’re far from blindly trusting it. In a market flooded with misinformation and low-quality content, AI systems are becoming far more selective about what they surface. For brands, building credibility through trusted sources and third-party endorsement will play a critical role in increasing visibility and trust.”

A fundamental shift for brands

Douglas Nicol, co-founder of ACAM (the Australian Centre for AI in Marketing) and an independent expert, said the AI Brandscape 2026 findings mark a genuine turning point for marketers.

“This research should be a wake-up call. Our industry has been heavily focused on back-end automation and cost reduction through AI. That matters, but it is not the whole story. Marketers now need to understand how AI is reshaping buying behaviours for their customers. The shift is happening fast, and it brings both risk and opportunity for brands.

“The Navigators’ AI Brandscape 2026 research is timely and gives a clear view of how customer journeys are changing. A priority for every marketer is to understand how their brand shows up in AI-mediated journeys, and what builds or undermines brand trust at the moment of choice.

“For some brands, this will mean a few targeted changes and sharper consumer insight. For others, it will require a broader reset of strategy, investment, and how marketing proves its value.”

GoCardless, a global bank payment company, has released the full findings of its recent ‘Pursuing Payments’ report, revealing the true extent of the late payments crisis affecting small businesses across Australia.

The comprehensive report, surveying 500 SMB owners and decision-makers in Australia, exposes how late payments have become a “silent cashflow killer” – with avoidance of awkward money conversations draining not just finances, but productivity, growth potential, and personal wellbeing.

The hidden time tax

The report reveals that 63% of Australian SMBs spend time chasing payments. Of those, the average time lost is 1.5 hours per week – amounting to approximately 78 hours, or over two full business weeks, lost annually to payment administration alone.

The delays are chronic: 41% of Australian SMBs who receive late payments are waiting more than 14 days past the due date on average, with 17% waiting over a month. Around half (48%) of businesses report waiting longer for payments than they were just 12 months ago.

Silence is expensive: The cost of avoidance

SMBs are willing to sacrifice significant revenue to avoid uncomfortable conversations. Almost one in four (23%) Australian SMBs are willing to write off 6% or more of their annual turnover to sidestep difficult discussions about late payments.

This avoidance is particularly pronounced among younger business leaders. The report found that 38% of Gen Z and Millennial business owners are willing to forfeit 6% or more of their turnover, compared to just 16% of business decision makers from older generations. Overall, 39% of SMBs admit to avoiding money conversations entirely in the past year.

Debt has become a cashflow strategy

Late payments are forcing SMBs to take on debt just to bridge the gap. The report reveals that 34% of Australian and 31% of New Zealand SMBs have turned to credit cards or loans in the last 12 months because late payments impacted their cashflow – effectively paying interest on money their customers already owe them.

Download the full Pursuing Payments report here

Beyond the bottom line: The personal toll

The crisis extends well beyond financials. Among Australian SMB leaders who avoided payment conversations in the last year, 38% reported increased workplace stress and 36% experienced heightened personal stress.

Additionally, 24% of businesses report that late payment issues have caused customer relationship strain – which only reinforces their desire to avoid future conversations, perpetuating a vicious cycle.

Ian Boyd, General Manager, Australia and New Zealand at GoCardless, says:

“This report is a critical warning for the Australian economy. Late payments aren’t just an inconvenience – they’re actively suppressing growth, forcing businesses into debt, and taking a significant toll on the mental health of business owners on a massive scale.”

“Despite this, 68% of businesses still say late payments are an ‘inevitable’ cost. This mindset needs to change if businesses want to take back control. Our study reveals that 70% of SMBs are interested in technology solutions to reduce the volume of late payments, and we already have that tech. For example, automated payments, like Direct Debit, that pulls the funds on the day they’re due. Late payments are a complex issue but small businesses everywhere can take steps today to combat the growing burden of late payments.”

From fake delivery texts to urgent bank alerts or messages that look like they’re from your boss, friend or a trusted brand, scams are showing up in everyday life.  More people are turning to AI tools like ChatGPT to ask a simple question: “Is this legitimate?” To help answer that question, Norton, has launched the Norton Genie assistant, its AI-powered scam protection, right in ChatGPT. Through this app, Norton brings trusted security intelligence directly into ChatGPT conversations, helping people identify scams and make safer decisions in real time.

The new Norton app in ChatGPT lets people share suspicious emails, texts, messages, images, or links and get clear, immediate guidance on whether something is safe, risky, or a scam. In addition to being able to check Genie in the Norton app, people can now access the same trusted Cyber Safety intelligence in ChatGPT, where they already ask questions.

“AI is quickly becoming part of our daily lives. People are already asking ChatGPT whether they should click, pay, or respond,” said Leena Elias, Chief Product Officer at Gen. “With Genie in ChatGPT, we are extending Norton’s scam analysis and advice directly into those conversations. In addition to the comprehensive protection people receive with Norton 360, we’re helping them make safer decisions in the moment.”

According to the Gen Threat Report, more than 90 percent of threats targeting people in 2025 came from scams, phishing, and fake advertisements. Many of these attacks are designed to look ordinary and convincing, making it hard to know when to trust a message and when to pause.

Helping People Make Sense of Suspicious Messages

The Norton app in ChatGPT is designed for the kinds of questions people face every day, such as:

• “@Norton, this email says my account will be locked if I do not act now. Is this a scam?”
• “@Norton, I got a text about a missed delivery with a link. Should I click it?”
• “@Norton, this message looks like it’s from my bank, but something feels off.”
• “@Norton, is this online deal real, or is it trying to steal my information?”

Unlike tools that only check whether a link is known to be malicious, Norton looks at the full context of a message. It examines the language, intent, and tactics being used, alongside URL and domain checks, to spot common scam patterns like impersonation, pressure to act quickly, or requests for sensitive information.

Norton then provides clear, easy-to-understand guidance, explaining why something may be risky and what steps to take next, such as avoiding a reply, not clicking a link, or deleting the message altogether.

Security That Fits Naturally into Everyday Life

The Norton app in ChatGPT is designed to feel simple and familiar. Anyone using ChatGPT can use the Norton app and paste in messages or images to get help checking for scams and ask Norton for safety guidance in plain language, just as they would ask a friend or family member for a second opinion.

As AI becomes a regular part of how people research and make decisions online, Norton’s app   reflects a broader shift in cybersecurity. Protection means helping people spot scams and other risks earlier, before they act. 

How to Use Norton Genie in ChatGPT

Getting started takes just a few steps:

1. Log in to ChatGPT

Apps are available once you are signed in.

2. Open the Apps section

Visit the ChatGPT app directory.

3. Find and enable Norton

Search for the official Norton app and click Connect to enable it.

4. Use @Norton in your chat

Get started by asking questions like “@Norton, is this a scam?” Start questions with @Norton any time you want help checking a message, email, link, or image, or when you have questions about staying safe online.

Norton in ChatGPT is supported across Free, Plus, Team and Enterprise tiers where apps are supported. To get started, go to https://chatgpt.com/apps/ and search Norton.

As home ownership continues to slip further out of reach, new data from QuickBooks suggests Australians are rewriting the “Aussie dream” — and turning to entrepreneurship instead with 66% of Aussies planning to start a new business or side hustle.

The 2026 Entrepreneurship Report from Quickbooks shows starting a business or side hustle is now the top wealth-building priority for Australians heading into 2026, ahead of savings, promotions or changing jobs:

• 41% plan to start a business or side hustle in 2026, making it the number one strategy for building wealth
• 66% are already planning or actively thinking about it, with 59% feeling a sense of urgency to start
• 46% say they’ll launch even if conditions aren’t perfect
• 66% are likely to use AI tools to help launch or formalise a business

Instead of property or risky investments, Australians are backing themselves. Over a third (36%) view cryptocurrency and (19%) find shares as the riskiest ways to grow wealth.

To bring the data to life,Ali Beeck, a young Australian who recently launched her own lip balm business, Balmee, after deciding that building a business felt more achievable than buying a home. Like most aspiring founders:

• Ali started with personal savings, reflecting the 75% of Australians who plan to self-fund
• Ali launched it as a side hustle, mirroring the three-quarters of Australians planning to keep businesses alongside full-time work
• Ali navigated early financial uncertainty, echoing the 72% of Australians who say low financial literacy makes life harder

The research also highlights why this shift is accelerating:

• Median start-up costs sit at $20K, far below a property deposit
• 40% plan to grow their side hustle into a full-time business, many within 1–2 years
• Demand for low-cost tools, automation and financial guidance is a key enabler of growth

Together, the findings point to a clear narrative shift: Australians are now looking to invest in something they can control — their own businesses.

More details can be found here.

Australian small businesses are entering a key  period, with many experiencing limited cash reserves, inconsistent readiness for payday super, and uncertainty about EOFY investment decisions, according to new research from Prospa and YouGov.

The Prospa SME Sentiment Report (Feb 2026) finds that 70% of SMEs are confident they can remain cashflow positive over the next 12 months, though this confidence is challenged by increasing compliance obligations and pending spending decisions.

From 1 July 2026, employers must pay superannuation contributions at the same time they pay an employee’s wages instead of the current approach which is quarterly. This is expected to substantially impact small business cashflow at a time many business owners are still feeling the pressure from higher inflation. Of concern, 41% of SMEs lack a full understanding of the reform, with nearly a third (30%) unaware of the change and 11% aware but not fully understanding it.

Preparedness remains inconsistent, even among those aware of the change. 19% of SMEs report they are not prepared, and 14% are unsure if they can meet the new payment schedule.

Beau Bertoli, Co‑Founder and Chief Revenue Officer at Prospa, said:

“The compliance changes to payday super will have a massive impact on SMEs’ cashflow. For businesses with thin buffers, moving super payments forward compresses working capital. The risk isn’t the rule itself; it’s being caught unprepared and being non-compliant.”

This change becomes more alarming when considering the limited cash reserves businesses are operating with. According to the report, 42% of SME’s have two months or less of expenses in reserve, including 16% with one month or less, and 14% with no reserves at all.

On average, SME owners hold only 2.7 months of expenses, leaving little margin for error quarter to quarter as obligations increase. Bertoli said, “Cashflow planning is going to be key for businesses. If you don’t have or can’t create the reserves to fund this new change it’s time to plan a funding line to support your cashflow through this change.”

Meanwhile, EOFY investment decisions are slowing. Although the $20,000 instant asset write-off is available until 30 June 2026, only 18% of SMEs plan to purchase eligible assets, 29% are unsure, and nearly 5% mistakenly believe the scheme has ended.

“What we’re seeing is hesitation, not apathy,” Bertoli said. “Businesses aren’t saying no to investment – they’re stuck deciding when and in what order. When cash is tight and obligations are moving faster, sequencing matters.” The research also points to a growing reliance upon external funding as businesses try to manage these overlapping pressures. One in three SMEs (34%) expect to access external finance in the next 12 months, up from 31% in September 2025, with those planning to borrow expecting an average of $23,181.

“For many SMEs, this year isn’t about bold expansion – it’s about staying liquid, compliant and flexible,” Bertoli said. “The businesses that plan early, model their cashflow properly and get advice will be in the strongest position to invest when the timing is right.”

For additional insights into the research, see this page here.

Lightspeed’s annual State of Hospitality Report, based on research with Australian consumers and hospitality operators, reveals how dining behaviours are evolving in 2026. The findings show that Australians aren’t necessarily eating out less, but they are dining out differently. Health, convenience, AI-driven insights and more intentional spending are shaping everything from menu design and portion sizes to alcohol consumption, takeaway habits, tipping behaviour and the overall dining experience.

Dining behaviours key findings:  

• Healthy choices take over as Aussies enter the “Un-Indulgence Era”: Diners are prioritising connection and wellbeing over excess. The report shows:
  • Over a third of consumers are skipping dessert (35%) when budgets, health or energy levels take priority
  • Gen Z drinking is declining, with only 33% now drinking at least weekly (down from 40% in 2024), while the share who never drink has risen to 11% (up from 7% in 2024)
  • 29% of diners say they want to see more health-conscious food options on menus, ranking it as the top customer priority
  • Demand for bottomless drinks continues to decline, falling from 21% in 2025 to 17% in 2026
  • Venues report that 40% of diners now order fewer or no drinks
  • Dining out continues to play a central role in Australian life, with habits holding steady at an average of three meals out, two drinks occasions and four solo dining visits each month.

• How technology became hospitality’s survival tool: As margins tighten and cost pressures persist, operators are increasingly turning to technology to optimise operations and maintain commercial viability. The report shows:
  • More than a quarter of venues (27%) say they could not run their business without AI-powered tools in 2026.
  • Almost 3 in 5 venues save over an hour a day using booking platforms (58%), reporting tools (57%) and AI-powered forecasting and optimisation tools (56%). 
  • 51% of venues say technology has improved customer service by freeing up staff time, up from 33% in 2023.
  • The share of venues using technology for better insights went from just over 3 in 10 (31%) in 2023, to almost 2 in 5 (37%) in 2024 and just over half (51%) in 2025.
  • Almost half (49%) of venues say improving customer engagement and experience is their top priority for growth in the next 12 months, closely followed by AI and technology adoption (43%). 
  • While menu and pricing optimisation is one of the most common uses of AI overall (50%), adoption varies by venue size, with operators running fewer than five venues more likely to rely on AI for day-to-day operational support.
• Takeaway is now a regular part of the weekly routine: Australians are still dining out, but takeaway plays a growing role during the week when people want something quick and affordable, with dine-in reserved for more intentional occasions. The report shows:
  • 36% of Australians now order takeaway at least once a week, on par with dining out.
  • Dining-out frequency remains stable, with around one-third (34%) of Australians still dining out weekly.
  • Only 10% say they never order takeaway, making it a near-universal habit.
  • From the venue side, 40% list delivery or online expansion as a top growth priority for the next 12 months, with takeaway/delivery now accounting for around a quarter (26%) of venue revenue.
• Tipping isn’t dying, it’s transforming through transparency: Diners are driven by meaningful moments and clear transparency rather than routine obligation. The report shows:
  • 44% of diners tip on larger bills or special occasions, when they’re celebrating.
  • 44% are more likely to tip when the purpose or destination of the tip is clearly explained, making transparency one of the strongest tipping drivers.

With ANZAC Day falling on Saturday 25 April 2026, the NSW Premier has confirmed that Monday 27 April will also be recognised as a public holiday. This arrangement has been introduced for both 2026 and 2027, when ANZAC Day falls on a weekend, and is expected to affect penalty rate staffing costs and operational planning for small businesses across the state.  

The Government has acknowledged that the additional Monday holiday may contribute to increased financial pressure for small business operators, particularly due to heightened wage obligations associated with public holiday penalty rates. Premier Chris Minns has noted that smaller employers are likely to experience the most significant impact, describing the change as “somewhat of an additional burden for small businesses.” 

Laurence McLean, Director of Operations at Peninsula Australia, says the change highlights the importance of employers having a clear understanding of their entitlements and obligations: “Penalty rates on public holidays can increase wage costs significantly, depending on the applicable industrial instrument. 

“For small businesses operating on tight margins, an additional public holiday immediately after a weekend, particularly where the Saturday prior is already a public holiday, in this case ANZAC Day on 25 April, can influence staffing decisions and operational planning. Reviewing rosters, confirming entitlements, and ensuring compliance with the Fair Work Act will help employers prepare effectively.” 

Many employers may experience penalty rate impacts relating to: 

• Adjustments to wage payments and penalty rates 

• Last-minute rostering or scheduling challenges 

• Reduced trading capacity should businesses decide not to open 

• Increased HR and staffing considerations, particularly in industries reliant on weekend labour such as hospitality, retail, and care services 

Laurence notes that early preparation can support smoother operations: “Being proactive about planning allows small businesses to manage the change with greater confidence. Reviewing award classifications, communicating with staff early, and understanding cost implications can help minimise disruption.” 

While the Government has framed the additional public holiday as an opportunity for broader community participation in ANZAC Day, it has also acknowledged that the measure has not been universally welcomed by business owners.  

Australian small businesses ended 2025 with solid momentum, recording their strongest sales, employment growth, and getting paid faster in two years, according to the latest Xero Small Business Insights (XSBI) data.

The December quarter update, which analyses anonymised and aggregated data from 520,000 Australian small businesses, shows performance in the sector continued to strengthen leading into 2026. This positive momentum could be at risk following the RBA’s latest interest rate increase in February.

December quarter at a glance:

• Sales growth rose 6.7% y/y – the best result in over two years, peaking in December with a 9.6% y/y increase
• Jobs growth rose 3.4% y/y – the strongest performance in two years
• Small businesses were paid on average in 23.9 days – the fastest recorded since XSBI started in 2017
• Wages rose just 2.0% in the quarter largely due to a holiday-impacted weak December result (+0.5% y/y), which is likely to be revised up in future releases
• Queensland had the highest sales growth in the country with a 8.3% y/y increase, followed closely by South Australia (+7.8% y/y)
• By industry, construction (+9.5% y/y), health care (+9.3% y/y), and real estate (+8.6% y/y) sales outperformed the national average

RBA decision could impact small business economy momentum

Small business sales grew 6.7% y/y in the December quarter, the largest quarterly rise since June 2023. This acceleration was particularly evident in December, which saw a 9.6% y/y surge – the largest monthly increase since early 2024, reflecting the positive impact of earlier 2025 interest rate cuts on consumer spending.

The growth flowed through to the workforce, with jobs increasing 3.4% y/y – the strongest result since late 2023. 

“Small businesses worked hard to find their footing in late 2025, reaching sales and employment levels we haven’t seen in two years,” said Louise Southall, Xero Economist. “However the February cash rate hike is a reminder of the fragile environment these owners operate in. As the RBA moves to address rising inflation again, the momentum we saw in December will be tested. Small businesses will need to remain disciplined to navigate the potential impact on  consumer spending over the coming months.”

Small businesses getting paid faster than ever

In the December quarter, small businesses were paid in an average of 23.9 days – the fastest quarterly payment time since the XSBI series began in January 2017.

Late payment times also saw a slight improvement, dropping to an average of 6.6 days from 6.7 days in the previous quarter.

“Yes, we’re seeing the fastest payment times on record — but let’s be clear: small businesses are still being paid almost a week late. That means they’re effectively financing their larger customers and, when you’re running on tight margins, being paid six or seven days late isn’t an inconvenience — it’s the difference between investing in growth and covering payroll,” said Angad Soin, Managing Director ANZ & Global Chief Strategy Officer at Xero.

“Cash flow discipline is becoming non-negotiable. With Payday Super on the horizon, owners need real-time visibility over their cash position and the confidence to forecast ahead.”

Construction and health care trend upwards, discretionary industries stall

Construction (+9.5% y/y) and health care (+9.3% y/y) saw the strongest sales growth, however the end-of-year period was more subdued for retail (+4.7% y/y) and hospitality (+3.5% y/y), both of which were below the national average of 6.7%.

“Black Friday is fast becoming the biggest sales moment of the year, but our data shows smaller retailers aren’t necessarily winning from it. In November, sales growth slowed to just 3.3 per cent — the weakest result since April 2025, suggesting discount-driven periods are amplifying the divide between big retailers with pricing power and small businesses competing on thin margins. For many small retailers, sales events now drive volume but not always profitability.”

The construction (+5.3% y/y) and health care (+5.7% y/y) industries also led the hiring charge, signaling that owners in these sectors felt confident enough to expand their teams.

Confidence among Australian employees in the availability of jobs has declined to its lowest level in more than three years, according to Gartner, Inc., a business and technology insights company. 

Gartner’s most recent Global Talent Monitor survey data, collected between October and December 2025, highlighted how ongoing market volatility is reshaping employee behaviour and attitudes going into 2026. The survey revealed confidence in job availability fell to 55.7 in Q4 2025, the lowest level recorded since at least 2022, reflecting deepening uncertainty as economic pressures and reduced hiring activity continue across the Australian market. 

“With fewer opportunities and heightened competition for open roles, Australian employees are becoming more cautious about making career moves,” said Neal Woolrich, Director, Advisory in the Gartner HR practice. “This lack of confidence is creating a labour market ‘freeze’, where many workers feel stuck – hesitant to leave but also uncertain about what the market can offer.” 

AI Intensifies Uncertainty in a Tightening Job Market

The changing nature of work is also contributing to employee unease. As organisations adopt AI at scale to automate tasks, redesign workflows and reconfigure roles, employees face growing ambiguity around future skill needs. 

“As AI adoption accelerates across industries, organisations are rethinking the roles and skills they need,” said Woolrich. “For employees, this shift can heighten uncertainty – they’re not just competing with other job seekers, but with rapidly evolving technology. This amplifies the sense of volatility in the job market and can contribute to a decline in job seeking activity.” 

Low Job Confidence Holding Employees in Place

The weakened job market sentiment is already influencing job search behaviour. The Gartner survey found only 19.4% of Australian employees reported actively seeking new roles in Q4 2025, signalling an overall cooling in job movement. 

With measures of job confidence remaining subdued in Q4 2025, the Gartner survey highlighted that employees are looking for stability. The intent of Australian employees to stay in the current role increased to 38.1% in Q4 2025, up from a three‑year low of 32.9% in Q1 2025. 

“Employees are opting for security over risk,” said Woolrich. “When confidence in job availability falls, they become less likely to explore new roles – even if they’re dissatisfied. This dynamic can intensify workplace fatigue, tension and disengagement if not addressed.” 

Focus on Compensation Intensifies

The Gartner survey revealed compensation remained firmly among the top drivers of both attraction and attrition for employees in Q4 2025, reflecting ongoing cost‑of‑living pressures in Australia (see Table 1). 

Table 1: Top 10 Drivers of Employee Attraction and Attrition, Australia, Q4 2025

Source: Gartner Global Talent Monitor Survey, Q4 2025 

The survey also indicated that poor manager quality remains a top reason Australian employees are leaving their organisations. This highlights the role that leaders play in clearly communicating organisational direction and stability during times of sustained uncertainty. 

“In periods of volatility, employees look to leaders for clarity, consistency and fairness,” said Woolrich. “Purpose‑led leadership becomes essential – not only to retain talent, but to create confidence that the organisation can navigate uncertainty.” 

The latest Equifax Business Market Pulse for Q4 2025 reveals a multi-speed recovery. Large businesses are leading the way on credit demand growth, with an observed increase in overall demand reaching heights of up to +19.4% (trade credit) in some sectors, such as hospitality.  Meanwhile, the broader view of the Small Business and Medium-sized Enterprise (SME) sector appears to exhibit a steady, albeit gradual, recovery. Although SMEs are trailing the growth seen in larger enterprises, their demand for credit continues to rise. However, the longer-term trends still show small business borrowing is on a recovery pathway, with Q4 2025 credit demand -9% below what it was four years ago in Q1 2022. 

With overall credit demand increasing by +2.3% compared to the same period in Q4 2024, Brad Walters, General Manager of Commercial at Equifax in Australia, indicates this may be the starting signs of SME recovery. 

Observing the trends, Brad Walters, General Manager, Commercial, said, “The +4.5% year-on-year increase in SME demand in Q4 2025 is a positive signal – though it reflects a more measured recovery pace compared to larger enterprises.”  
 
“While large-scale businesses appear to be accelerating their credit appetite more quickly, SMEs appear to be navigating a steadier path upward as they balance growth with external factors such as the  pressures of inflation. They don’t always have the means to absorb potential shocks as easily as their larger competitors, so they’re choosing a steadier, more sustainable climb back to the top.” 

Business Credit Scores Hit 3-Year High 
 

Equifax insights reveal that business loan demand increased +4.1% year-on-year in Q4 2025 and, in addition, business loan quality increased by two points, achieving a three-year high.  

“When we look at the past quarter, it appears to be a story of a change in the market mix. We’ve seen more enquiries from larger businesses, which often have more reserves and carry higher credit scores. This shift in the overall enquiry profile – where the larger players are currently more credit active than smaller players – is what I see driving this upward trend in credit quality. In practical terms, this shows that the credit quality of the mid-market and larger businesses overall remains quite resilient.” Walters said.  
 

The Equifax Business Market Pulse Q4 2025 also reveals an overall year-on-year decline (-4.9%) in trade credit demand, an indication that businesses are not making as many transactions as they were this time last year.  

Large Hospitality, Construction and Retail Businesses Strong Drivers of Credit Growth 

Notably – hospitality, construction and retail – highlighted differences in the financial appetite of large businesses and SMEs in Q4 2025.  

 
Hospitality showed one of the largest gaps. Credit enquiries from large hospitality businesses drove increased demand across trade credit (+19.4%), business loans (+9.1%) and asset finance (+5%). 

“The hospitality sector shows one of the widest discrepancies in overall demand for large businesses compared to SMEs in Q4 2025. While trade credit demand in large hospitality businesses increased by +19.4% year-on-year, overall credit demand growth from SMEs (+1.9% year-on-year) was marginal.  

While insolvencies in the hospitality sector remain high overall, the past quarter showed an encouraging -9% reduction compared to Q4 2024, in addition to a -1.5 day reduction in Days Beyond Terms (DBT) for trade payments over the same period”, said Mr Walters.   
 
In the construction sector, insolvencies remained high but relatively unchanged year-on-year. Credit demand, however, told a different story. 

Mr Walters stated, “The demand we are seeing could suggest big builders are confidently securing materials for their project pipelines, driving a +6.6% year-on-year (vs Q4 2024) increase in trade credit. Now, during this same time period, small construction businesses appear to be avoiding broad debt, seen by a slight reduction (-0.7%) in overall demand, and only borrowing for specific tools via asset finance (+4%).” 

In the retail sector national demand from large retailers increased by +7.9% year-on-year, compared to a stagnant +0.7% for SMEs in Q4 2025. Large NSW retailers were particularly active, increasing their business loan enquiries by a staggering +25%. 

Mr Walters concluded, “While we have seen strong demand growth among large retailers, the wider sector still shows some signs of pressure, with the past quarter revealing a substantial +64% increase in retail insolvencies year-on-year.”