The COVID 19 pandemic, bushfires, floods and the ever-increasing cost of business, are having a significant impact on small businesses across the country.
A Labor Government will deliver a Better Deal for Small Business, providing certainty to the small business community in times of crisis, ensuring they are paid on time, cutting transaction fees at the point of payment, and making government work for small business.
Small business is the backbone of the Australian economy and has been taken for granted by the Morrison Government for too long.
Labor’s Better Deal for Small Business will:
- Guarantee that an Albanese Labor Government will consider the specific needs of small businesses in times of crisis, giving the confidence and certainty to grow and plan for the future. Labor will work closely with states, territories, industry groups and communities to end the uncertainty that surrounds when and the extent of support small businesses are able to access in a crisis.
- Ensure small businesses are paid on time to sustain growth across the economy with a mechanism to ensure payment within 30 days. The current average contract payment time sits at 37 days – well above the 30-day benchmark.
- Make unfair contract terms illegal so small businesses can negotiate fairer agreements with large partners.
- Drive a genuine collaboration with small businesses and government to reduce the time small businesses spend doing taxes, cut paperwork and target support. Eight out of 10 small businesses find government regulation overly complex.
- Draw on Labor’s history of working with unions, workers and industry to deliver better outcomes with settings that are simpler, more accessible, and fair.
- Reduce small business transaction costs at the point of payment with a clear timeline for implementing least cost routing or similar. Small businesses are disproportionately impacted by higher transaction fees that eat into profits – around $804 million a year.
The cost of these measures will be met from within existing resources.
These commitments from Labor complement our plans to:
- Maximise small business participation in Commonwealth procurement, providing greater opportunities for business and Australian jobs. The Commonwealth can use its $190 billion purchasing power to support small businesses, delivering better value for money and growing the local economy, to build a Future Made in Australia.
- Provide an environment for businesses to thrive through Labor’s Start-up Year initiative, Fee-Free TAFE to address skills shortages, and Cheaper Child Care to remove barriers to returning to work.
These measures are targeted at making it easier for small business to bounce back from the ongoing pandemic and recovering from the bushfires and floods which have ravaged parts of Australia.