When Birdie Walker embarked on a new endeavour and bought a health foods shop in Canberra's city centre two years ago, sales grew at first.
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It wasn't until late last year she noticed business conditions worsening, as customer spending dropped almost overnight.
There's been no recovery since, a bind Ms Walker said was tougher without the time needed to build a savings buffer beforehand.
![Birdie Walker, owner of Natural Selection Health Foods in Canberra's city centre, says business conditions worsened late last year. Picture: Karleen Minney. Birdie Walker, owner of Natural Selection Health Foods in Canberra's city centre, says business conditions worsened late last year. Picture: Karleen Minney.](/images/transform/v1/crop/frm/fdcx/doc75mjnn4hrvs1hu2m3cue.jpg/r0_278_5568_3428_w1200_h678_fmax.jpg)
The housing downturn and fall-out from the banking royal commission were filtering through the economy, she said.
For all the hard work, the income she makes running Natural Selection Health Foods is small.
"You wouldn't do it unless it was your own business, or you were passionate about it," she said.
"It's been difficult getting it off the ground."
The ACT government's budget on Tuesday raised more questions for Ms Walker as it showed a 6 per cent average rise in commercial general rates.
You've got to wonder where the money is going to come from.
- Birdie Walker
"The rent is one thing, but then having to pay for the rates and the upkeep, that's all got to come out of our own pockets and when you're struggling, it makes everything more difficult in terms of business," Ms Walker said.
"You've got to wonder where the money is going to come from."
Ms Walker welcomed the government's announcement it would lengthen the period used to calculate the average unimproved value for commercial properties from 2020-21, to deliver more predictable rates bills.
She also applauded the territory government's plan to spend $5 million over four years renewing Canberra's city centre.
The area needed an upgrade, and government spending in other parts of the CBD was yet to arrive near her business in Petrie Plaza, Ms Walker said.
"This is the capital of Australia and there's some beautiful aspects of Canberra and beautiful buildings around, but the city centre needs some work."
Andrew Sykes, director of business advisory at corporate financial and accounting services firm RSM Australia, said the ACT budget was the culmination of government work diversifying and supporting the economy. It didn't offer anything to make business easier in Canberra, he said.
"It's pretty much business as usual, and you would have to say the government is lining up for an election budget for next year," Mr Sykes said.
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Businesses were heading into tougher economic conditions while facing higher costs, he said.
Commercial rates increases would make business even more difficult in the ACT, Mr Sykes said. However Canberra businesses would benefit from the government's planned spend on health and schools.
While the ACT had achieved 4.25 per cent economic growth this year and was nearing the end of a long-term tax reform project, Mr Sykes said more changes were needed as the territory economy transformed.
The ACT government will also spend $4.7 million over four years on the CBR Innovation Network initiative connecting education institutions with businesses and aiming to create more local start-ups.