COSBOA ‘highly concerned’ latest tranche of IR changes will push small businesses to the wall

It is alarming the Albanese government has rammed the Closing Loopholes Bill through the Lower House despite being roundly rejected as flawed and unworkable by small businesses.

The sheer complexity of the Bill will turn headaches into migraines for SMEs already grappling with a complex system.

Ninety percent of SMEs 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 cyberattacks, it is remarkable that IR complexity is now the number one risk facing small businesses – this is a government-inflicted risk.

Further complexity comes at a time when small businesses can least afford it.

Currently 43 percent 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 3-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.

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 businesses 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 recognises the small business focus of lower house MPs including Dai Le, Allegra Spender, Zali Steggall, Kylea Tink, Rebekha Sharkie and others who voted against the Bill, not only for its harmful impact, but also flawed process.

COSBOA now calls on the Senate as the ultimate house of review to reject this 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.

Luke Achterstraat is the CEO of COSBOA.