Call for dedicated ministers as family firms boost AUD $1b sector

The Family Business Association is urging all Australian states and territories to appoint dedicated ministers to represent the family business sector, highlighting its significant contribution to employment and the economy.

Approximately 50% of working Australians are employed by family businesses, according to figures from the Family Business Association, with these businesses playing a crucial role in supporting local communities and driving economic activity nationwide.

Sector performance

The request for formal government representation comes as new data indicate that Australian family businesses outperform their global peers on several key indicators. The latest KPMG Insights report (June 2024) shows that Australian family businesses report a business performance outcome of 77%, compared to the global average of 71%, and a sustainability impact of 80%, which is slightly above the global average of 78%. Australian family businesses are also older than their global counterparts, with an average age of 47 years, compared to 39 years globally.

Catherine Sayer, Chief Executive Officer of the Family Business Association, stated that while family businesses are a robust and longstanding part of the Australian economy, further government attention is needed at all levels.

"South Australia and Queensland are leading the charge and driving momentum – it's time the rest of the country caught up and supports these critical businesses at the government level. Family businesses are the backbone of our economy and have a unique set of needs which need to be addressed to ensure continued success."

"As found in the Family Business 2025 Barometer Report, family businesses are focused on long-term goals – ensuring financial security for future family (54%), planning for succession (45%), and are planning to pass the business to the next generation (42%)."

"Our Barometer Report points to strong opportunities for industry and government to collaborate with us to enhance the sector," said Sayer.

Succession and consumer support

The long-term approach of family businesses is demonstrated by intergenerational transfer, with 70% being handed down to the second generation and beyond. Consumer support for such businesses remains high, with 70% of surveyed consumers indicating a preference to spend with family-owned firms over non-family businesses.

Sayer commented on the need for coordinated government attention to further harness the potential of family enterprises.

"Dedicated Federal, State and Territory ministers would provide a government backed focus on the issues for the sector and help us to make an even bigger impact."

Community and economic impact

The economic and social contribution of family businesses extends beyond job creation. Each year, the sector collectively contributes approximately AUD $1 billion to philanthropic activities, supporting local initiatives and charities. Sayer said that as these businesses expand, so do their commitments to family values, staff, customers, and the broader community.

"This focus will benefit the economy and local communities with family businesses contributing $1b each year to philanthropic activities. As family businesses grow, so too does their commitment to their family values, employees, customers and wider community," said Sayer.

Representation in government

According to the Family Business Association, South Australia and Queensland have already taken steps by appointing ministers responsible for the sector, and the organisation believes that a national approach is needed to build on these initiatives.

Sayer maintains that greater collaboration between the government and the sector would enable family businesses to continue making significant contributions to employment stability, economic output, and social cohesion across Australia.

The Association also invited engagement with family business leaders from various industries, including retail, manufacturing, farming, health, and construction, highlighting the sector's diversity and national impact.