Easing Red Tape for Small Business Relief

Small businesses across Australia are facing mounting pressures, with nearly half considering closure in the past year. A survey shows 82% of small businesses struggle with bureaucratic red tape, while more than half are spending increasing amounts of time and money on compliance. Proposed industrial relations changes risk adding further strain, leaving many small businesses battling to survive under inflationary and administrative burdens.

Small business owners, already stretched thin, often juggle operational management, long hours and financial stress. However, over the past two and a half years, sweeping workplace relations changes have compounded their challenges, hindering job creation and economic participation. With stricter regulations, the pressures from compliance have grown more formidable, raising concerns about sustainability.

A key recommendation involves adjusting the Fair Work Act's definition of small business from 15 employees to fewer than 25. This simple change could reduce regulatory burdens for around 50,000 additional businesses. The adjustment would allow more businesses to bypass costly multi-employer bargaining requirements, avoid inflated labour hire orders, and delay complex timeline obligations tied to recent workplace laws.

Expanding this definition offers broader benefits, like ensuring flexibility under modern wage theft laws and providing small employers more time to prepare for upcoming changes. Importantly, these revisions would not reduce workers' entitlements, maintaining existing protections while alleviating red tape. The hopes are that such reforms could help small businesses focus more on growth and innovation rather than administrative hurdles.

Simplifying compliance processes may prove crucial in reinvigorating Australia's small business sector. Easing unnecessary bureaucracy could empower thousands of employers across the country to thrive, contributing to economic growth and fostering better mental health among business owners.

Source: The Australian, Fair Work Australia, Employee Matters, Smart Company