Labor’s pledge to protect small business under new police

A new policy would mean more protections for small businesses, with one Torquay bakery owner calling for opportunities for them to expand.

Small businesses would have bills paid by big business sooner and dodgy contracts strong-arming small businesses would become illegal under a policy Labor will take to the election.

Labor wants to change the threshold of a small business — from an employer of less than 20 people, to an employer of 100 or less or to a business with a turnover of under $10m — to safeguard more business against unfair contracts.

Labor’s proposed unfair contract provisions would apply to those worth under $5m, up from $300,000 or $1m for contracts lasting longer than a year.

In 2021 there were 10,344 small businesses with turnover of $10m or less in the Corio electorate. Next door in the Corangamite electorate there were 12,606 businesses turning over under $10m.

Small business policy - Labor

Deputy leader and Corio MP Richard Marles said the reporting mechanism small businesses used to call out big business, who didn't pay their bills on time, would get “some teeth” under Labor.

“We’ll make payment on time within 30 days the law of the land,” Mr Marles said.

“For big businesses which persistently do not pay their bills on time, meaning within 30 days, we will put them on a program where they must pay them within 30 days so that... the existing reporting mechanism, which is a name and shame thing, has some teeth.”

Small business policy - Labor

Mr Marles said under Labor the Australian Competition and Consumer Commission would have the power to fine big businesses that include dodgy clauses in work agreements with small business.

“We will make unfair contracts unlawful in Australia. Between big businesses and small businesses so that were big businesses enter into or engage in contracts, which are exploitive of small businesses, it will be unlawful to put those terms in agreement and there’ll be civil penalties associated with doing that.”

Small business policy - Labor

Mr Marles said Labor wanted to increase competition among EFTPOS providers to make sure small businesses weren’t weighed down by fees.

“We intend to work with the banks and the providers to implement (an end to) cost routing.”

Mr Marles said the proposed changes to small business would create a more level playing field, and the legislation required to make the changes law would be introduced to parliament “as soon as we can.”

Maple Bakery owner Durham Green said small businesses needed to be given more opportunities to expand.

Corangamite MP Libby Coker said small businesses needed more assistance.

Mr Marles said Labor also wanted to improve the industrial relations framework small business operated in and reduce the administrative burden for small businesses interacting with government.

Originally published as Labor’s pledge to protect small business under new police