Where Aussie business dollars are headed in 2025-26

Aussie businesses will pour profits into people, marketing and the workplace over the next 12 months, with fresh data revealing a pivot back to the office and tight profit margins is steering a trend towards lower cost, high-impact non-capital spending.

Marketing, training, tech and even office furniture will take priority for businesses in 2025-26, with a national survey by business loan comparison platform Small Business Loans Australia (SBLA) showing 91 per cent of businesses plan to make non-capital investments to drive immediate efficiency, sales and growth without taking on significant financial risk. 

The figures follow data by the Australian Bureau of Statistics that show private capital expenditure fell by 0.1% in the March quarter of 2025 – driven by a 1.3% fall in plant and machinery investment – and is now 0.5% lower than in March 2024.[1] While some sectors seem to be pulling back, businesses overall are forecasting a still-healthy $155.9 billion[2] in capital investment this financial year.

To ascertain which types of capital businesses are investing in this financial year, and what internal and external drivers influence their capital investment decisions SBLA commissioned an independent, nationally representative panel of 200 business owners and decision-makers.

In terms of capital investments, the most popular suggest that a significant proportion of businesses will invest in the more immediate needs of their businesses, such as operational efficiency and ending work-from-home arrangements. These investments are technology and IT hardware (38% of businesses), followed by office furniture and fittings (28%), the latter suggesting office enhancements to bring workers back. A smaller proportion plan to spend on machinery and equipment (22%) and motor vehicles (13%), larger-ticket items that need more financing or longer-term certainty. That one in 10 businesses will invest in sustainable assets could be driven by energy efficiency or compliance needs.

The survey additionally found that the most common non-capital investments are new employees (by 31% of businesses) and skilling up employees (35%). Investment in product or service development (23%), marketing and advertising (22%) and customer experience enhancements (16%) show businesses will also invest to grow efficiency and sales.
Small Business Loans Australia also sought to identify the internal roadblocks that would prevent businesses from committing to capital investment. Narrow financial constraints are the biggest barrier, with tight profit margins (43%), insufficient cash flow (26%) and prioritising debt repayments (17%) likely to impact businesses.

The macro-level or environmental forces that most influence business capital investment are high energy costs (30%), rising interest rates (24%) and economic uncertainty (22%), all of which are real issues in the current economic environment. 

Alon Rajic, founder of Small Business Loans Australia, says: “Business owners are making hard decisions about where to allocate limited funds – and our research shows there is a clear preference for investment that drives efficiency, customer acquisition and workforce capability. While they might not be prioritising big-ticket capital purchases at last year’s levels, many businesses are still planning to invest in growth.

“Our research also revealed that the decision to invest in capital and the willingness to take risks is sensitive to internal and external pressures, the biggest being financial: limited finances, inflation and high interest rates. 

“The good news is that businesses aren’t necessarily slowing down – they’re choosing those investments that have faster returns and lower risk. Businesses are making more selective and considered decisions about how they’ll grow this financial year.”

The full Small Business Loans Australia FY26 capital investment study can be found here.