Business confidence rose 11 points as 61 per cent of surveyed businesses reported feeling positive in their prospects, despite a fall in sales for some in the December quarter, according to the latest quarterly Sensis Business Index.

Sensis chief executive John Allan said the lift in results was driven by strong sales among businesses anticipating a positive year.

"Looking to the year ahead all of the expectations are positive, with the ACT recording the best results for sales and wages," he said.

ACT businesses, the third most confident nationally, reported higher expenditure compared to the same quarter in 2015.

However business support for the ACT government's policies dropped 12 points to -11 on the index, a result Sensis attributed to the October election.

Excessive bureaucracy and government-related costs were the main concerns business raised.

An ACT government spokesman said it had cut red tape by scrapping regulations on taxis, making it easier for businesses to have outdoor dining, removing requirements for unnecessary signage and reducing some reporting requirements for employers.