The Victorian Regional Chamber Alliance (VRCA) has released its second Business Health Survey Report, gathering insights from businesses across rural and regional Victoria spanning all sectors. The report follows the inaugural survey published in September 2025 and paints a sobering picture of the current operating environment.

The survey reveals that nearly one in four regional businesses may not survive beyond the next 12 months — a remarkable figure given that almost half of those surveyed have been operating for more than a decade. Regional businesses report they have never fully recovered from the post-COVID economic environment, with trading conditions now described as among the worst since 2020.

Key findings highlight that operational costs (22.4%), customer demand and consumer spend (18%), and regulatory and compliance burdens (12.3%) are the primary challenges facing businesses. Staffing and recruitment also remain significant pain points, with housing shortages and lack of local accommodation cited as major barriers to attracting and retaining workers.

Confidence in government is critically low, with more than half of respondents expressing no confidence in the State Government, and 45% expressing no confidence at the Federal level. When asked what single change would make the greatest difference, tax reform and reduction was the top response (24%), followed by reducing regulatory and compliance burdens (19.2%) and lowering operating costs including energy, fuel, and insurance (18.5%).

Business Wodonga is a proud member of the VRCA, which represents chambers of commerce and business associations from across Victoria. To find out more, visit www.regionalchambervic.org.au.