MEDIA RELEASE (NZ)

The survey of nearly 700 Chartered Accountants includes 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.

Of those exposed, higher energy costs are the most common impact (77 per cent), followed by supply chain disruption (46 per cent), higher production costs (40 per cent), shipping and freight delays (40 per cent) and exchange rate volatility (36 per cent). New Zealand businesses are more exposed to shipping disruption, with 48 per cent reporting freight delays compared to 32 per cent in Australia.

CA ANZ Chief Executive Officer 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).

"Businesses are asking for conditions that allow them to make confident, long-term decisions," said CA ANZ NZ Country Head Peter Vial FCA.

“Increasing diesel storage at Marsden Point and formalising fuel supply agreements with refiners such as Singapore is a positive step.

"We support more steps to build genuine long-term resilience, including policy settings that focus on productivity, competitiveness, and the supply chain and energy systems businesses depend on.

“To date, we think the Government has delivered the right level of direct support – as it meets their criteria of being targeted, timely and temporary.”

“We know that the Government fiscal envelope is constrained – but the Budget announcement on 28 May should provide direction on energy sustainability and security. The time to act is before the next shock hits."