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The complex legislation has become the number one threat to the sector, COSBOA says.
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Small business ‘will be sent bust by flawed IR bill’
01 December 2023
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Small business will be “sent to the wall” by the complex and unworkable industrial relations changes in the government’s Closing Loopholes Bill, says the Council of Small Business Organisations Australia.
It said the latest tranche of IR revisions were being rammed through the lower house of Parliament despite the concerns of small business and called on the Senate to reject the legislation.
COSBOA CEO Luke Achterstraat said the Closing Loopholes Bill had been roundly rejected as flawed and unworkable by small businesses.
“The sheer complexity of the bill will turn headaches into migraines for businesses already grappling with a complex system,” he said.
“Ninety per cent of small businesses surveyed by COSBOA said they will be less likely to employ if the changes proceed, and that complex IR changes now rank as the biggest risk facing small businesses in coming months.”
“In an environment of rising energy, rent, insurance and borrowing costs topped with the growing risk of cyber attacks, it is remarkable that IR complexity is now the number one risk facing small business – this is government-inflicted risk.”
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Mr Achterstraat said adding complexity to industrial relations, particularly the employment of casuals, could not come at a worse time for small business.
“Currently 43 per cent of small businesses are not profitable with owners paying themselves less than the average salary and working longer hours to keep their doors open.
“Over 2.5 million small businesses in Australia including butchers, bakers, hairdressers and grocers will be required to interpret and satisfy an ongoing three-page, 15-factor determination test for casual workers – putting at risk their rostering process and the casual loading enjoyed by workers in a cost-of-living crisis.”
Mr Achterstraat said the government has now shredded much of its hard-earned credibility on small business.
“The failure to even bother modelling the impact of the 800-page package on small business raises serious concerns about the government’s promise to make life easier not harder for small businesses.”
“Heralded measures for small business including the Instant Asset Write Off and Energy Incentive are yet to be legislated, and now face the risk of being irrelevant for small businesses who face higher costs and the threat of closure.”
COSBOA called on the Senate to reject the “flawed bill” and press the reset button on the legislation.
“There’s no shortage of self-proclaimed small business acolytes and advocates in Canberra – now is the time for those who have listened to small businesses to stand up for what is right.”
“Decision makers need to understand that our industrial relations system is much more than a political plaything – it affects the daily lives of our small business owners and their 5 million employees.”
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