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A RECOVERY PLAN FOR SMALL BUSINESS Restrictions are being eased across Australia, Victorian hotspots aside, and many small businesses are considering reopening or ramping up as we enter the recovery phase of the pandemic. Best of all, people are finally returning to shops. INDUSTRY INSIGHT By Australian Small Business and Family Enterprise Ombudsman Kate Carnell AO. S mall businesses can feel more positive these days, and if they’ve been using the downtime to think about ways of reinventing their business, now is the time to start putting those plans into action. Of course, many small businesses and family enterprises may be feeling overwhelmed and wondering if their operations will continue to be viable over the coming months. For those impacted by both COVID-19 and the devastating bushfire season, the hurdles may seem insurmountable. There has never been a tougher time to be in business. With this in mind, my office has released a comprehensive plan, recommending a suite of reforms to support small businesses at this challenging time. Our COVID-19 Recovery Plan details a number of changes aimed at creating a small-business-friendly landscape, including: • Legislating 30-day payment terms for small businesses. • Creating a federal small business claims tribunal with the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) to provide triage services. • Abolishing Fringe Benefits Tax for small business. • Making the small business instant asset tax write-off of $150,000 permanent. • Ensuring least-cost routing for electronic payments is available to all small businesses. • Unfair contract terms being automatically void in contracts up to $10 million. • Creating a small business procurement panel for any government contract under $10 million. • Introducing a ‘small business award’ covering all staff. • Amending the Small Business Fair Dismissal Code. Our recovery plan is aimed at restarting the economy by getting people back to work and building economic confidence. It was encouraging to hear the Prime Minister announce plans to rethink our industrial relations framework, describing the system as “not fit for purpose”. It’s absolutely true that in this new world we live in, with business confidence at a historical low, small businesses must be able to hire and manage staff easily, so they can get on with the job of running their business. The Fair Work Act has 960 sections and more than 250,000 words. On top of this, Australia has more than 100 industry awards, with hundreds more classifications within those awards. That’s why my office is calling for the introduction of a small business award. If adopted, this would be simpler than existing awards and available to all small businesses on an opt-in basis. It would cover all staff, irrespective of their different duties and would include a ‘permaflexi’ classification. The award should have minimum standard pay rates, which can include penalty rates but not overtime (ie, loaded rates). Permaflexi gives the employee a permanent and secure position with standard forms of leave, but it also gives the employer the flexibility to ensure shifts can be changed to meet the needs of both the business and the employee. Small businesses will be facing enormous challenges and uncertainty as they emerge from hibernation. They need flexibility and confidence in the system to start hiring again. Unfortunately, the overly complex system we have now effectively forces small businesses to seek expensive legal advice in trying to avoid the threat of significant penalties if they happen to make a mistake. This means small business owners often decide not to employ, because it’s too risky and complex. We will be raising these points and more during the government’s industrial relations discussions over the coming months, to ensure the small business community is heard. About Kate Carnell AO Since being appointed Australian Small Business and Family Enterprise Ombudsman in March 2016, Kate Carnell has been a powerful advocate for small business. The Ombudsman has provided direct support to thousands of businesses involved in disputes. She has served as CEO of the Australian Chamber of Commerce and Industry, which represents 300,000 Australian businesses, and was awarded an Order of Australia for her service to the business sector. Australian Small Business and Family Enterprise Ombudsman’s office The ASBFEO's role is to support small businesses and family enterprises to enable them to grow and thrive. The ASBFEO was launched in 2016 and has two key functions: to assist and to advocate for small businesses and family enterprises. JUL/AUG, 2020 CONVENIENCE WORLD 11