Tough quarter for sole traders, but we’re still loving the freedom of flying solo

The results of the latest Hnry Sole Trader Pulse are in, and let’s just say it’s been a bit of a bumpy ride for Australia’s freelancers, consultants, tradies and gig workers.

Confidence has taken a dive, the economy’s looking grim, and EOFY stress is peaking. But despite all that, soloists are proving once again that they’re a resilient bunch. Many are still thriving, thanks to the perks of being your own boss.

Sentiment slides

The overall sentiment score has dropped to 120 (the lowest since 2022), as sole traders across the country brace for what feels like a tightening economy. Confidence in the current state of the economy has also dipped to just 80 out of 200, and outlook for the next six months isn’t much better.

Creative freelancers copped it the worst, reporting the lowest financial performance and the gloomiest outlook. Meanwhile, health and wellness pros, consultants and those fresh to business were a bit more upbeat.

Yet, even with all that uncertainty, personal satisfaction, wellbeing and work-life balance remain sky-high.

“Despite a lot of financial headwinds, we’re seeing people still love the lifestyle that comes with self-employment,” says Hnry Australia boss Karan Anand. “That flexibility and freedom is clearly still a big drawcard.”

More money coming in (for some)

While things are tight, not everyone’s feeling the pinch. Nearly half (49 per cent) of sole traders reported an income bump this quarter, a solid jump from 38 per cent last quarter.

Health and wellness professionals led the charge (59 per cent saw an increase), followed closely by sole traders in their first couple of years of business – also at 59 per cent.

Young business owners, in particular, are feeling more optimistic than the rest, reporting better current performance, solid financial security and a lift in overall wellbeing. So if you’re just getting started, take heart, ou’re not alone and there’s plenty of momentum out there.

Inflation’s still a pain in the wallet

Price hikes haven’t gone anywhere,  and for most sole traders, they’re biting hard.

A whopping 79 per cent are paying themselves more just to cover the basics, and 77 per cent are forking out more for supplies. That’s the highest numbers we’ve seen in the Pulse to date.

Even with a few interest rate cuts in the mix, only 18 per cent said they’ve actually felt the financial benefit. Most described it as more of a mental boost than a bank balance one.

EOFY is making soloists sweat

More than a third (35 per cent) of sole traders say they’re stressed about EOFY, the highest level of stress seen in any June Pulse. On average, sole traders are spending 10 hours and nearly $800 getting our tax sorted.

What’s interesting is how solopreneurs are handling financial admin. Fewer soloists are using accountants than ever before – just 45 per cent – and among those in business less than two years, it’s only 28 per cent.

Instead, more sole traders are turning to apps and software to keep things in check, with 71 per cent saying they’re comfortable with their financial setup (and a bit more if they’re using digital tools).

Not feeling the love from Canberra

When it comes to government support, confidence is patchy.

Just 42 per cent reckon the Federal Labor Government will perform well this term, and only 22 per cent feel sole traders are represented in policy decisions. Regional and long-standing businesses are particularly unimpressed.

That said, younger business owners and those based in cities are a bit more hopeful. Sixty-three per cent of sole traders aged 17–34 believe the government will do alright by them.

So what about tax refunds?

Only 28 per cent of sole traders expect a refund this year, and most think it’ll be under $3,000, but for 73 per cent of those, that extra bit of cash is a crucial top-up. So don’t forget to claim what’s yours!

Want to see how other soloists are faring – or benchmark your own mindset? Check out the full Hnry Sole Trader Pulse.

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