COSBOA calls for comprehensive SME support following IR changes
Australian SMEs must “draw a line in the sand” against increased costs and complexities caused by recent industrial relations changes, according to the Council of Small Business Organisations Australia.
The Council of Small Business Organisations Australia (COSBOA) has revealed the launch of its new blueprint for small businesses focused on a clearer, pro-employment workplace relations system.
COSBOA noted the blueprint had been designed to specifically recognise Australian small businesses as the key drivers of productivity, jobs and living standards and that they needed efficient systems and support to bolster their processes.
COSBOA CEO Luke Achterstraat said recent tranches of IR change had 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.”
Small businesses had been continuously slammed with new regulations, Achterstraat said, as there had been at least 35 major changes to the Fair Work Act since May in addition to the ‘multitudinous’ new regulations.
COSBOA said the blueprint called for more effective institutional support for small businesses within the complex IR system ecosystem.
“A small business triage service within the Fair Work commission should be created to protect businesses from frivolous and vexatious complaints,” Achterstraat said.
“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.”
Small businesses were responsible for the support of 5 million Australian jobs which failed to have been recognised by the industrial relations system.
Achterstraat said small businesses were only mentioned in “passing reference” in Division 2 of the Fair Work Act, despite small businesses being the largest private sector employer in Australia.
“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.”
“These improvements must be matched by a better IR policy process from the 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 also noted its support for an updated definition of small business, which was ruled out by the federal government until perhaps late 2025.
The body said the change of the definition would have the effect of bringing Australia more in line with counterparts such as the European Union, the UK and Canada.
Achterstraat said 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.”
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