Finance leaders sound alarm as Middle East conflict squeezes Australian and New Zealand businesses (AU)
Finance and accounting professionals are reporting widespread economic damage to the businesses and clients they advise. A new survey of nearly 700 Chartered Accountants Australia and New Zealand (CA ANZ) members found eight in ten are seeing increased costs, six in ten report heightened risk and uncertainty in decision-making, and 49 per cent are navigating supply chain disruption as a direct result of the Middle East conflict.
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CA ANZ's members include finance leaders across industries, from manufacturing and retail to agriculture, logistics and healthcare, giving the survey broad visibility into real business conditions across both economies.
Of those surveyed, 61 per cent reported their organisation is directly exposed to the conflict's economic effects. Exposure was higher in New Zealand (68 per cent) than Australia (55 per cent). A further 21 per cent say it is too early to assess the full impact.
CA ANZ Chief Executive Ainslie van Onselen said the findings reflect a defining economic challenge for both countries.
"This is not a distant crisis. It is landing on Australian and New Zealand businesses right now, and our members are seeing it firsthand across every sector of the economy. CA ANZ represents 140,000 finance professionals. What they are telling us matters, and government needs to listen."
CA ANZ Chief Economist Professor Richard Holden warned the pain is unlikely to be short-lived. “Higher energy prices don't just hit at the bowser, they push up the cost of food, freight, manufacturing, meaning everything increases in price. Businesses and households are already under pressure. This makes it worse."
Around half of respondents are monitoring the situation but have not yet made concrete plans, reflecting the level of uncertainty in decision-making. Around one in five said they would raise prices, with that figure higher in New Zealand (24 per cent) than Australia (17 per cent).
When asked what government support would make the most difference, members pointed to two clear priorities: investment in infrastructure to strengthen supply chain resilience (52 per cent) and direct support with energy costs (50 per cent).
CA ANZ Group Executive Advocacy, Public and Government Affairs, Damian Ogden, said government needs to think beyond the immediate crisis.
"Government cannot keep governing crisis to crisis. Fuel security, reliable energy and resilient supply chains are the foundations a modern economy runs on. It is time to strengthen them."
