Wednesday, July 10, 2013

lets kill small business by wrapping it in beurocratic red tape by those who have never run a business

I have been very busy with starting a new business and all the accreditations that are required to go with it so when I read the following it totally resonated with me:
Over the last few months, the Gillard government, the Federal Parliament and statutory bodies have made a number of important decisions that will impact on many businesses and add to business costs and compliance.

While a few of these decisions are individually reasonable, the compounding effect of additional costs and compliance burdens will be a further hit to business confidence which is already fragile after the lingering effect of the GFC, years of political instability and increasing uncertainty about policy settings. 
Many of the decisions have been hurriedly introduced without proper consultation and due process. The decisions will add to the frustration and cynicism of many business owners who are finding the ever-increasing burden of regulation, compliance and red tape difficult to finance and manage.
The list of recent changes includes:

  • 5% increase to the carbon tax (1 July)
  • Award wages up 2.6% (1 July)
  • Award allowances up CPI or 2.6% (1 July)
  • Superannuation levy paid by employers rising to 9.25% (1 July)
  • Fourth increase in four years to weekend penalty rates for retailers (1 July)
  • Unfair dismissal threshold and compensation going up (1 July)
  • Superannuation now paid to workers above 70 (1 July)
  • New consultation obligations whenever rosters or hours change
  • New obligations to consider family friendly rosters
  • New parental leave obligations
  • Increased powers to Fair Work Commission (union entry, workplace productivity)
  • Penalty rate principles legislated
  • New restrictions on recruiting overseas skilled workers under 457 visas
  • Reverse onus of proof and increased sanctions on employers to prove employee legal status (1 June)
  • Employers to finance union travel and entry to remote workplaces (1 January)
  • Right to sue employers for workplace bullying (1 January)
  • Union officials right to occupy workplace lunch rooms (1 January).
 
In the meantime here are a few suggestions for both sides of politics as they head into the Federal Election:

  1. RECOGNISE THE CRITICAL ROLE THAT BUSINESS PLAYS as the creator of jobs, innovation and wealth.
  1. SHELVE ANTI-BUSINESS LEGISLATION - such as changes to 457 visa laws, right of entry for unions and the legislation of penalty rates.
  1. CUT DOWN ON RED TAPE AND REGULATION 
  1. Regulation is suffocating small business. The costs and time involved in complying with those regulations is bad enough, and the unnecessary duplication makes it even worse. Let's cut the red tape and give small business a break.
  1. SIMPLIFY THE TAX SYSTEM 
  1. Our tax and finance systems are impossible for the average small business person to understand and comply with. Many small businesses need to employ specialists and the whole process adds unnecessary cost and time while draining entrepreneurship. Let's ease the tax burden and make it simpler.
  1. MAKE IT EASIER TO EMPLOY PEOPLE 
  1. Australia has become a very costly place for small business to hire, keep and dismiss staff. And when times are tough, that means jobs and hours get cut. It's also too hard to get workers with the right skills. Let's make it easier to employ people and create more jobs.
  1. BUILD BETTER INFRASTRUCTURE
  1. Support enabling infrastructure to lift productivity and create jobs.  In Australia we talk a lot but it's time to move past rhetoric and actually do something about it.  For Canberra and the region this means
  • Building the Australia Forum Convention Centre NOW and
  • Putting a High Speed Rail connection between Canberra and Sydney (as a first stage in linking the East Coast capitals) out to the market NOW, rather than in 15 years time.  Both of these projects will deliver positive economic returns, create jobs and provide opportunities for businesses across in the ACT and region.
Canberra Business Council
CEO

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