New workplace laws will cost small businesses more than $23k

While there was a small win in regard to the threshold for multi-employer bargaining in Parliament on Wednesday (23 November) with the Minister for Industrial Relations, Tony Burke, agreeing to lift the threshold from 15 to 20 employers before a business has to take part, the ACCI said the government’s own costings in regard to the regulatory impact statement were wrong.

The ACCI said the government’s costings for Australian businesses to operate under proposed workplace laws are severe but are grossly underestimated.

In Parliament on Wednesday (23 November), the government’s cost estimates for Australian businesses were revealed that stated small businesses would have to find another $14,638 to implement the changes.

The cost for medium businesses was $75,148 and for large businesses $94,311. These costings were based on a $175 per hour rate provided by a self-described “spiritual healer”.

However, the ACCI said a more realistic analysis using current market rates showed these figures to be significant underestimates.

It said using the government’s own methodology, but with a far more accurate minimum market rate of $438 per hour, small businesses can be expected to pay between $19,574–$23,684, medium businesses between $107,344–$129,880 and large businesses between $126,307–$152,820.

The ACCI said it based its costings on the Doyle’s Guide pricing reports, adjusted for inflation using the RBA inflation calculator.

“Alarmingly, the Bill’s own Regulatory Impact Statement also shows that even small business owners will have to spend at least 4.6 hours every day for up to six months, away from their businesses, negotiating a multi-employer agreement,” ACCI chief executive Andrew McKellar said.

“When businesses are already facing soaring inflation, rising interest rates, skyrocketing energy bills and a crippling workforce shortage, the last thing they need is tens of thousands of dollars in extra costs.

“Even under its own methodology, the government has vastly underestimated the direct costs to business of being dragged into multi-enterprise negotiations, let alone the costs of being forced to work under unsuitable arrangements determined in union offices.

“There’s no doubt that businesses want higher wages for all Australians. When wage growth is strong, businesses and families benefit. Yet the government’s proposal to implement sweeping multi-employer bargaining changes will do nothing to help deliver bigger pay packets.”