Australia’s caught in a bit of a head-scratcher right now.
Productivity’s dropped — but small business owners, especially in professional services like accounting, advising and brokering, feel busier than ever. Sound familiar? 🤯
Here’s the snapshot from 2022–23:
- GDP per hour worked fell by a record 3.7%.
- Hours worked jumped 6.9%, but output didn’t keep pace.
- Labour productivity in the market sector dropped 2.9% — the biggest fall on record.
So, what’s going on? Why are we all stretched so thin, yet producing less?
On paper, it looks odd: people are working more hours, yet producing less. In practice, it’s easier to see why.
From my time working with small business owners and advisors, this isn’t just an economic blip. It’s a people problem wrapped in a system problem.
Here’s how I see it — two lenses you need to use together.
- The big picture
- Structural pressures: supply chains, shifting demand, tighter margins, more compliance and reporting.
- Labour market shifts: skills mismatch, staff shortages, and more casual or part-time arrangements that break continuity.
- Technology paradox: more tools, but more switching costs and setup time. Not every tool saves time immediately.
- The human side
- Mental load: owners and leaders juggling client work, ops, hiring, finance and strategy — constantly reactive.
- Process friction: informal workarounds that accumulate into daily drag. One person’s “that’s quick” becomes everyone else’s bottleneck.
- Burnout and presenteeism: people show up and move slowly because they’re exhausted. That looks like busy-ness, not productivity.
…and you can’t fix one without impacting the other.
Give people better systems, but ignore economics, and you’ll get marginal gains.
Tackle macro forces but ignore how people actually work, and you’ll fail at implementation.
So, let’s unpack this.
The reality: high hours, low output
One of many unexpected surprises to come out of the pandemic was some modest productivity gains.
It didn’t last long, though, and the trend since has been consistent; roughly every two percentage points increase in hours worked, a corresponding percentage decrease in output.
It doesn’t make sense. More work isn’t translating into more value or efficiency – quite the opposite.
I see this every day with the advisory businesses I coach — whether it’s a solo accountant or a boutique financial advice firm. The grind never stops: client hunting, compliance headaches, tech upgrades, and operations that spill into late nights.
It’s not isolated to these businesses either.
Those of us who serve advisors are seeing the same issues, compounded with less time available for helping solve the issues.
Here’s what it looks like in real life:
- More hours clocked ⏰
- Less sense of achievement
- That nagging of spinning your wheels
I’ve been there. It’s frustrating to work harder but not feel like you’re moving forward. But recognising this is the first step. It’s a reminder to rethink how we work, not just how much.
We can’t control every external factor, but we can find ways to reclaim our time and energy.
It starts with being honest about what’s really driving productivity — and what’s just busywork disguised as progress.
You get stuck in the muck of manual work, and frustration builds up.
Under‑investment in tools, tech, and processes
One structural drag is what’s called “capital shallowing.” It’s when, as a business, your team grows, but your investment in the right systems and tools doesn’t keep up.
In our industry, it’s been the case that smaller firms have usually lagged behind bigger ones when it comes to automating workflows, using CRM tools, or switching to cloud-based systems, but in fairness most firms tend to lag behind broader societal investment.
The Productivity Commission itself highlights that SMEs most often drive productivity not through home-grown innovation but by adopting proven technologies developed elsewhere (news.com.au, publicaccountant.com.au).
Those who do invest the time, though, do tend to grow faster and more smoothly, because tech helps standardise processes and cuts down on the boring, repetitive stuff — you know, admin, invoicing, compliance. Tasks that can really drain your energy if you’re doing them by hand.
But when tech isn’t used properly, it’s like trying to swim with weights on.
Compliance and administrative overload
Then there’s the regulatory maze.
Renewal processes, ASIC updates, tax changes, anti–money laundering checks, fiduciary duties—these are constants.
With small firms lacking the compliance teams of larger firms, the administrative burden can be staggering.
Research shows sole traders spend an extra 15 hours each week on paperwork and red tape—hours that could have been spent growing or servicing clients (aheadforbusiness.org.au, theaustralian.com.au).
Increasingly complex regulations also drive burnout. A recent survey showed 77 % of sole traders feel lonely and isolated, and many report working evenings on admin tasks like taxation and invoicing (news.com.au).
These additional hours don’t translate to effectiveness—just exhaustion.
Mental health, burnout & small‑biz stress
It’s not just inefficiency: long hours and admin overload are taking a toll.
A Treasury study found 22 % of small business owners had doctor‑diagnosed mental health issues in early 2022, with barriers including cost, lack of time, and failure of services to address their specific needs (treasury.gov.au).
Sectors like accounting and financial services report high anxiety and responsibility stress—44 % reported anxiety, and 55 % felt burdened by staff welfare.
Advisors often “conceal their own mental health issues” while carrying multiple burdens (industry.gov.au).
Burnout compounds overwhelm: advisors are twice as likely to feel lonely and exhausted if fatigued, and many report worsening well-being over the past year.
Small practices typically don’t have internal mental‑health support—turnover, absenteeism, and diminished quality follow.
5. Productivity drag in service‑heavy sectors
Australia’s shift toward service industries—health, education, professional services—has coincided with slowing productivity growth (treasury.gov.au, lens.monash.edu).
Non-market services in particular (e.g., NDIS, social assistance) suffer from low measurable output, dragging average productivity.
While professional advisory firms sit in high-performing ICT/professional services, they still feel the drag of sluggish performance elsewhere (macrobusiness.com.au).
Even within your niche, growth often means more client volume, but not better per-hour efficiency.
6. The emotional cost & presenteeism
Burnout lowers performance—but small firms often don’t recognise it. The “presenteeism” phenomenon—being there, but not fully present—hits advisory practices hard, where mental clarity and client focus are critical.
One study found that 4 in 5 office workers report burnout, with top drivers being heavy workloads and understaffing (ia.acs.org.au).
For small practices, “not enough staff” may directly reflect solo or micro setups without help.
Left unchecked, burnout in professional services leads to reduced client satisfaction, mistakes in complex financial advice, and reputational damage—all consequences of being too swamped to deliver well.
7. Compliance fatigue, isolation & blurring boundaries
Hybrid and home-based working models have perks—but also downsides. For sole traders, working from home often erodes the boundary between work and life.
Combined with regulatory duties, lack of peer connection, and constant client demands, the days blur into prolonged stress and exhaustion.
Surveys show business owners are 77 % lonelier and often sacrificing self-care and relationships to keep pace.
Feelings of isolation amplify stress, undermining mental health and, ironically, further reducing productivity.
Let’s summarise the state of play.
- More hours ≠ more output
You’re working longer—on tasks both core and ancillary—but without gain in efficiency or profit. - Admin & compliance drain energy
Those 15+ extra hours on red tape extract mental bandwidth and time better spent on clients. - Tools are under-used or absent
Without streamlined software adoption, simple tasks become laborious, inefficient, and draining. - Mental strain is very real
Anxiety, burnout, and isolation undermine capacity—even if you’re physically “present.” - Sectoral pressure intensifies effects
Rising complexity in professional services coincides with broader service sector lag, dragging visible progress.
What can advisors do?
1. Systematise & automate
- Adopt client portals, CRM software, cloud accounting, and e-signature platforms.
- Leverage pre-built templates for compliance audits and engagement letters.
- Focus on diffusion—implement tools others have built successfully (news.com.au, theaustralian.com.au).
2. Tackle admin head-on
- Outsource repetitive tasks: bookkeeping, scheduling, compliance prep.
- Set boundaries: dedicate specific days/hours to admin, and stick to them.
3. Invest in wellbeing
- Join peer support: e.g., Beyond Blue’s NewAccess for small business owners (smartcompany.com.au).
- Schedule regular downtime and mental check‑ins; embed wellbeing practices in your business.
4. Collaborate & connect
- Build networks with other advisors—for shared learning, accountability, mental support.
- Consider group mentorship, industry forums, or co-working environments.
5. Advocate for regulatory reform
- Support industry groups reducing red tape—Australia’s business sector reports 15 hours/week lost on compliance (theaustralian.com.au).
- Submit to regulatory reviews affecting ASIC, tax, and financial licensing.
6. Measure your productivity
- Track key metrics: time per client, admin time, burnout indicators.
- Set improvement goals—e.g., cut admin hours by 20% in six months with tech and process changes.
Here’s a short add-on piece you can insert into your blog post—exploring the paradox of time poverty: how the very overwhelming small business owners face stops them from fixing it.
The Paradox of Time Poverty: Why the Cure Feels Out of Reach
One of the cruellest ironies facing small business owners in professional services is this:
You know what could help—but you don’t have the time to implement it.
You’ve probably heard it before:
- “Automate your workflows.”
- “Outsource your admin.”
- “Streamline your tech stack.”
- “Block out time for strategy.”
- “Prioritise self-care and wellbeing.”
These aren’t bad suggestions—they’re right on the money. But when you’re neck-deep in BAS lodgements, compliance reviews, last-minute loan applications, and client service, even looking at a new CRM feels like a luxury you can’t afford. You’re busy surviving the week, not redesigning how you work.
This is the paradox of time poverty. The very overwhelm that’s burning you out is also the reason you can’t take steps to fix it. It’s like being stuck in a leaking boat with no time to plug the holes because you’re too busy bailing out water.
This isn’t a failure of planning or motivation. It’s structural. It’s emotional. And it’s systemic.
But here’s the shift:
You don’t need a full overhaul to get traction.
- Block just one hour a week to work on the business, not in it.
- Choose one system to fix—just one.
- Delegate a single recurring task—even if it’s small.
- Book a standing call with a peer or coach who’ll help keep you accountable.
Progress doesn’t have to be massive. But it does have to be deliberate.
Because if you wait until you’re less busy, you’ll always be waiting.
And the cost of delay—emotionally, financially, and professionally—only grows.
Let me know if you’d like a visual to go with it (e.g., time poverty loop diagram), or a version tailored to a specific profession (e.g., mortgage broker or accountant).
The Pathway Forward
Small advisory firms aren’t the cause of Australia’s productivity slump—but your experience mirrors it. More hours, less output. Heavy admin, limited support. Burnout with little relief.
Yet this also points to solutions: targeted investment—in tech, processes, wellbeing, peer networks—can transform overwhelm into sustainable growth.
Nationally, stronger SME-focused productivity programs, regulatory reform, and digital diffusion efforts are underway. For advisors, aligning with these initiatives, using modern tools, and prioritising mental health won’t just improve your own resilience—they’ll boost the professionalism of the sector as a whole.
In summary
| Challenge | Why it matters | What to do |
|---|---|---|
| Admin overload | Builds daily inefficiency & exhaustion | Automate, outsource, scheduled admin time |
| Under-utilised tech | Hampers productivity, wastes labour | Adopt proven software for client/service work |
| Mental health strain | Reduces capacity despite physical presence | Peer groups, wellbeing programs, healthy habits |
| Regulatory complexity | Consumes many hours weekly | Advocate with industry bodies for reform |
| All:4 | All:4 | All:4 |
Final thoughts
Being a small‐business advisor today means wearing many hats—and feeling every one of them. But you don’t have to stay swamped. By combining smart tech, intentional processes, mental‑health supports, and industry advocacy, you can rebuild your capacity, driving both client impact and business sustainability.
You’re not alone in this. The broader ecosystem is catching on: productivity programs aimed at SMEs, coupled with advocacy on red tape reduction, are gaining traction (smartcompany.com.au, theaustralian.com.au). Seize this moment—invest in your systems, your wellbeing, and your network.
Because when you streamline your own practice, you not only reclaim time and energy—you help shift the narrative: professional advisory work that’s efficient, impactful, and deeply rewarding.
