According to the Index, which tracks the activity and confidence of about 1,000 regional and metropolitan Australian SMEs, a quarter of all SMEs believe the economy is growing, versus 16 per cent who say it is slowing. This is the best net balance score since December 2013.
Confidence is particularly high in business services, hospitality and property industries.
"The results of this survey are really pleasing and I know from meeting with many small businesses, from bookkeepers or bakers to cleaners or carpenters they are feeling confident about their future,” said Mr McCormack.
Contributing to the results are items which have assisted SME cash flow, in particular, easier access to loans. Of the 12 per cent of SMEs who applied for finance during the reporting period, about 60 per cent were successful.
Further, about 300,000 small businesses have utilised the instant asset write-off, immediately deducting investments in capital equipment of up to $20,000.