The federal government’s proposed industrial relations reforms have been met with rejection by the Council of Small Business Organisations Australia (COSBOA).
According to COSBOA, the challenges of confusion and complexity persist, exacerbated by the growing demands placed on businesses, regardless of their size.
“The issues of confusion and complexity remain, combined with an increased requirement of every business, small or large, to dedicate resources, time and money towards trying to understand and implement these onerous new obligations,” COSBOA said in a statement.
COSBOA highlighted that the new obligations necessitate a considerable allocation of resources, time, and financial investments to comprehend and implement effectively.
“At a time when small businesses are managing increased costs of supply, of rent, of power, of wages; we don’t need changes that detract business from their sales and service delivery. Small business seek to employ and properly reward their workers. They seek to innovate and adopt new technology. We seek IR changes that enhance productivity and opportunity, not broad impacting confusion about what they are and aren’t allowed to do.”
In resolute opposition to the proposed legislation, small businesses emphasize the need for a comprehensive impact assessment before considering its enactment. The implementation costs, the expenses associated with seeking professional advice, and the potential disruption to workforce flexibility demand thorough evaluation. The complexity of the proposed changes calls for ample time to analyze the details now available.
The plea to the government is not to rush these changes into law, recognizing the multitude of unanswered questions that confront each small business under the proposed alterations.
According to COSBOA, SME owners are already grappling with numerous inquiries arising from the potential changes:
- Small businesses wonder if they fall under the category of labor hire firms, especially when they provide services, sometimes through contractual arrangements.
- Those offering specialist services are uncertain about the extent of their involvement in the proposed changes.
- Questions arise regarding the status of suppliers when a business utilizes external services, potentially classified as labor hire.
- Businesses that advertise on digital directories seek clarity on their inclusion in the “GiG” category and its repercussions.
- Managing a workforce with different awards and classifications raises concerns about the implications of errors, including potential legal consequences.
- Worries revolve around who has the authority to inspect various aspects of business records, including information that may be confidential, like family domestic violence leave or health records.
Furthermore, the logistics of inspections, especially in home-based businesses, pose questions regarding unannounced visits and potential privacy breaches.
These unresolved questions underscore the pressing need for businesses to fully understand their obligations, seek professional advice, and make informed decisions to ensure compliance. Additionally, the development of the Small Business Code for Wage Payments is pending, emphasizing the necessity to consider the capacity and specific circumstances of small businesses when enforcing compliance measures. This holistic approach recognizes the challenges faced by small businesses in a landscape marked by evolving regulations and increasing complexity.
Read COSBOA’s statement here.
Source: Matthew Addison Chair of the Board
Luke Achterstraat CEO Council of Small Business Organisations Australia (COSBOA)
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