The Council of Small Business Organisations Australia (COSBOA) has today launched a blueprint for a clearer, pro-employment workplace relations system that recognises small businesses as the key driver of productivity, jobs and living standards.
COSBOA CEO Luke Achterstraat said recent tranches of IR change have imposed unprecedented cost and complexity onto millions of small business employers, and it was time to ‘draw a line in the sand’.
“Small businesses are the backbone of our economy, but the workplace relations framework has become more complex, confusing and costly for them.”
“Small business has witnessed a raft of new ideological regimes – ranging from a new complex 15-factor test for casual employment, widely expanded union right of entry, the undermining of self-employed Australians, and the bizarre Greens-led ‘right to disconnect’ legislation.”
Achterstraat said there had been at least 35 major changes to the Fair Work Act since May 2022, not to mention the multitudinous new regulations that need to be complied with by small business.
“Whilst more complexity is a boon for lawyers, mum-and-dad businesses are left behind and must incur considerable time and cost to receive advice. We are talking about employers without in-house HR or IR teams, often navigating an increasingly complex labyrinth on their own.”
Achterstraat said it was high time to recognise that small business supports five million Australian jobs, and the industrial relations system needed to reflect this reality.
“Take for example Division 2 of the Fair Work Act itself which sets out the objectives of our workplace relations system. Small business only receives a passing reference in paragraph “g” – the final element on the page – despite small business being the largest private sector employer in Australia. This sends the message that small business is an afterthought.”
Achterstraat said immediate priorities for an incoming government must be removing complexity from the hiring of casual workers, withdrawing expansive and disruptive union delegate rights, and ensuring freedom of association for small business not wishing to be caught up in multi-employer bargaining.
Achterstraat said these improvements must be matched by a better IR policy process from government in Australia, including realistic impact statements and transparency.
“We need systems that work for small businesses and their workers, not against them. Mandating Small Business Impact Statements for all new legislation would help ensure policies are as practical as possible.”
COSBOA is also calling for an updated definition of small business, with the current headcount definition of just 15 or less not fit-for-purpose.
“Too many small businesses face the risk of losing their status by bringing on additional casuals to meet seasonal demand. Many small businesses may easily employ dozens of people but operate on thin margins and low turnover.”
“A more appropriate definition could be achieved by updating the definition to 50 full-time equivalent employees, excluding casuals. This would bring Australia more into line with counterparts such as the European Union, the United Kingdom and Canada."
Lastly, COSBOA’s blueprint calls for more effective institutional support for small business within the complex IR ecosystem.
“A small business triage service within the Fair Work Commission should be created to protect businesses from frivolous and vexatious complaints. Too often small businesses find themselves victims of ‘go-away’ money, where the cost of engaging legal representation outweighs the cost of simply meeting a spurious compensation claim.”
Achterstraat said that small business owners want to comply with the law, but the complexity of the system makes it difficult.
“It says a lot about our workplace relations system that the Department of Employment itself – that drafts the very rulebook – was found to be non-compliant.”
“By expanding funding for advisory services and co-developing simplified compliance codes with small business representatives, we can help businesses navigate their obligations while fostering a more supportive environment.”
Achterstraat concluded that industrial relations improvement was required for Australia to lift its economic fundamentals.
“To boost productivity growth, competition and living standards, we need to create confidence and certainty for small businesses and the people they employ.”
“It’s time for a workplace relations system that reflects the value of small business and supports their success, rather than one that panders to sectional and vested interests.”
For more information, visit www.cosboa.org.au.
For media enquiries or interviews, please contact Luke Achterstraat, Chief Executive Officer, COSBOA on ceo@cosboa.org.au or call +61 (0) 433 644 097.
About COSBOA
Established in 1979, The Council of Small Business Organisations Australia (COSBOA) is a member based not-for-profit organisation exclusively representing the interests of small businesses. The capability, representation, and reach of COSBOA are defined by a mix of over 50 national and state-based members. COSBOA's strength is its capacity to harness its members' views and advance consensus across policy areas common to many.
Our member organisations work with the COSBOA team to assist us with policy development and guide our advocacy - not just for small businesses but also for the benefit of the Australians they employ. In this capacity, COSBOA makes submissions and representations to the government, including its agencies, on issues affecting small businesses and to pursue good policy.
For more information, visit www.cosboa.org.au
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