A survey released today shows business confidence has fallen to its lowest level since 1994.

"Growth indicators including sales, profits, employment and investment all fell over during the last quarter, which paints a very scary picture for Australia's 2.4 million small businesses," opposition spokesman for small business Steven Ciobo said in a statement.

"Business expects the economy to grow by less this year under Labor's (Treasurer) Wayne Swan than it did in the previous year under the coalition."

The Commonwealth Bank - Australian Chamber of Commerce and Industry (ACCI) business expectations survey shows the expected economic performance index for the June quarter fell to 33.3, significantly lower than the 53.5 in the June 2007 period under the previous Howard government, and sits well below the 49.2 five-year average.

"It is a stinging truth that business has lost all faith in Labor after only nine months in government," Mr Ciobo said.

"The Australian economy has weathered many storms under the coalition, including the Asian financial crisis, but it is evident small business doesn't think Mr Swan is capable of managing Australia's $1.1 trillion economy."

Mr Ciobo said he met with his state colleagues with portfolio responsibilities in small business yesterday and agreed to work closely to reduce red tape and give business owners the confidence to hire new staff.

"Labor is doing nothing to give business owners reassurance. Each time confidence hits a low, Labor succeeds in getting it even lower," he said.

"At a time when Australia's GDP is relatively strong, we're seeing business confidence spiralling downwards under wall-to-wall Labor Governments.

"This is an abysmal position for Australian business to be in."