Home topics news Earlypay CEO James Beeson News News Why Victoria ranks dead last for doing business and what it means for your bottom line Yajush Gupta January 29, 2026 Earlypay CEO James Beeson warns Victorian SMEs face mounting pressures from rising costs, patchy demand and growing compliance burdens, with the state ranking last nationally for business competitiveness. What’s happening: Victorian small and medium businesses confront rising operating costs, patchy consumer demand and growing compliance burdens that are squeezing margins and pushing more operators into cash flow stress, according to working capital provider Earlypay. Why this matters : As the second most populous state accounting for almost a quarter of national gross domestic product, Victoria’s poor business environment has outsized impacts on Australia’s global competitiveness and investment attractiveness. Victorian small and medium businesses are confronting a mounting combination of rising operating costs, patchy consumer demand and growing compliance burdens that are squeezing margins and pushing more operators into cash flow stress. James Beeson, CEO of working capital provider Earlypay, said the cost of doing business in Victoria is increasingly standing out compared to other states, with higher state taxes, charges and compliance demands adding to the burden. “Put bluntly, Victorian small businesses are doing it tough,” said Mr Beeson. The Business Council of Australia’s Regulation Rumble report released late last year highlighted Victoria as the least competitive jurisdiction in which to do business and having the most room for improvement, due to regulatory and tax settings holding back the state