Confidence among Canberra's business owners has surged in recent months despite waning support for the Barr government sparked by growing concerns over excess red tape, a survey has revealed.
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The latest Sensis data showed the number of small to medium business owners in the ACT who felt positive about their prospects for the next year rose from 55 per cent to 61 per cent, above the national average of 60 per cent, in the last quarter.
That was compared to 12 per cent who were pessimistic, below the national average of 16 per cent, and meant Canberrans were among the most positive in the country, second only to NSW, as overall business confidence reached its highest level since the start of 2011.
The index, which reflects the views of 1000 small to medium business owners across Australia, showed 20 per cent of ACT business owners thought the economy was slowing, while 18 per cent believed it was flourishing.
Overall 24 per cent of Australian business owners felt the economy was slackening and 16 per cent thought it was growing.
Canberrans also had a more positive economic outlook for the year ahead than most, with 31 per cent believing they would fare better and 10 per cent believing conditions would be worse.
Sensis chief executive John Allan said ACT business people were feeling positive about their own strengths and had also reported healthy, growing sales in the last quarter.
Despite that overall growth in confidence, he said support for the Barr government had fallen and businesses had increasing concerns about its policies.
The survey showed 24 per cent of small to medium business owners thought the territory government's policies worked against small businesses, while more than half (54 per cent) believed its policies had no impact.
About 22 per cent felt the territory government was supportive of small businesses.
"Excessive bureaucracy is seen as a key issue, and many businesses also worry the government doesn't understand their needs," Mr Allan said.
The index showed business confidence was higher in all states and territories except for Tasmania and the Northern Territory, which both suffered significant drops in the past year, with Western Australia reporting the lowest levels.
NSW improved for a fifth consecutive quarter and was the clear leader, joined by Victoria and the ACT above the national average.
The survey, which was done before the federal election, found that Australian businesses' perceptions of the Turnbull government were mixed, with 21 per cent supportive of its policies, 19 per cent opposed and the majority indifferent.
