(7 January 2026 – Australia) Natural disasters have become a persistent and material risk for Australian SMEs, with the latest data from ScotPac’s SME Growth Index revealing 65 percent of SMEs have been impacted by bushfires, floods or cyclones in the past five years.
Despite the risks, an alarming 1 in 4 SMEs have not taken any action on disaster preparation (26 percent). The headline findings highlight the growing financial and operational strain placed on businesses right across the country as climate-related disruptions become more frequent and severe, especially at this time of year.
In response to disaster-related impacts, 1 in 3 businesses said they would turn to their lenders for financial guidance, closely followed by suppliers and trading partners (32 percent). More than 1 in 4 SMEs have not sought any advice on disaster preparation.
“Navigating natural disasters have always been part of doing business in Australia, especially for primary producers and tourism operators and the industries that depend on them. The potential for natural disasters should be factored into resilience planning for every SME, regardless of their location” commented ScotPac CEO Jon Sutton.
“But when two thirds of SMEs report being affected, it’s clear that the impact of bushfires, floods and cyclones is growing, and more businesses are being affected. Natural disaster impacts are hitting more businesses, costing more money, and getting harder to manage without the right plans in place.”
“Those SMEs that have yet to take proactive steps to prepare for future events were vulnerable to avoidable disruption. Businesses that don’t plan for disruption are effectively betting against events that are now happening with increasing regularity” Mr Sutton added.
“Liquidity, alongside insurance, is a central part of any natural disaster response. The SMEs that recover fastest are typically those that already have flexible funding options in place before they’re needed. Having access to flexible capital allows business owners to repair damage, support staff and maintain momentum during disruption. That’s where ScotPac can help” Mr Sutton said.