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- In short: Small business owners in Hobart's northern suburbs are bracing themselves for the new financial year, as electricity and rate costs increase
- What's next? One council has relaxed penalties for late payments in recognition of tough times
For bakery franchisee Tammy Hill, the costs of doing business are quickly piling up.
"It's pretty much a domino effect: one thing goes up, another, another," she said.
"All our ingredients have gone up, we've had to have a price rise, we've really got to be vigilant with our wages and what we're spending and really tracking it because it could blow out pretty fast."
Rising interest rates were affecting Ms Hill's home mortgage and business loan, along with the stress of rising costs of living.
"So life's getting pretty tough," she said.
Similar hardships were being felt at the bakery's neighbouring businesses in the main street of Glenorchy, in Hobart's northern suburbs.
Renee Cox has co-owned a local hair salon for less than a year and said it had been a struggle as costs continued to rise.
"We are trying to build this business up into something great and everywhere you turn there are rising costs," she said.
"The products are going up, the colours going up, rent, power, absolutely everything is going up and that does make it a struggle."
The business was delicately balancing staying afloat while trying to keep services affordable for its clients.
"Unfortunately, the harsh reality is if we want to stay in business and keep servicing them, then we need to pass these costs," Ms Cox said.
"It's so important because as much as we've got to put the prices up, people don't have the money to necessarily spend and getting your hair done isn't always the first priority when everything's going up and people don't have extra money to pamper themselves."
The fast-approaching new financial year will bring more pain.
Power bills for Tasmanian small businesses and households will increase by 9.51 per cent from July, a rise of $200 a year on the average bill.
And businesses and home owners in the area will be slugged with higher rates.
Median property rates jump $133
The Glenorchy City Council will raise rates by 8.95 per cent as it tries to soften the impact of a forecast $3.64 million deficit next financial year.
The rates bill for the median residential property is set to increase by $133.
Meanwhile, ratepayers in Huon Valley face a 12 per cent rate hike, West Coast residents 10 per cent and Burnie 8.78 per cent.
Glenorchy Mayor Bec Thomas said the council was empathetic to the impact that would have on ratepayers.
"We know that that hurts, we know that households are facing increasing cost pressures and bill increases," she said.
"Council also voted to make some changes to interest rates and penalties applied to late payments."
The penalty will halve from 10 per cent to 5 per cent, while the grace period will increase from seven days to 21 days for late rate payments.