Small businesses fear Labor’s minimum wage increase could hit them hard
Small businesses are warning Bill Shorten and Michael Daley will hit them with a crippling wages bill “double whammy” if Labor wins federal and state elections. Plus, the Coalition pledges $7.5m to lure foreign backpackers to Australia for seasonal farm work.
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Small businesses are warning Bill Shorten and Michael Daley will hit them with a crippling wages bill “double whammy” if Labor wins the federal and state elections.
Mr Shorten has flagged legislating changes to encourage the Fair Work Commission to increase the minimum wage to a “living wage” amid ACTU pressure.
But latest ABS data reveals his plan would disproportionately whack small and medium-sized businesses, with more than a third of those who employ fewer than 50 people using award wages — compared to 17 per cent of larger businesses.
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Mr Daley, if elected premier, plans to freeze payroll tax at the current threshold of $850,000 rather than increasing it to $1 million by 2021-22 in a move that will deny 40,000 businesses tax relief.
Council of Small Business of Australia CEO Peter Strong said increased wages would force more businesses to pay payroll tax, making Labor’s policies a “double whammy”.
He said businesses would be forced to look at ways to absorb the costs, which would include increasing prices for customers or cutting workers’ hours.
“We don’t want to go into class warfare with employers versus employees because as small business we are all in the trenches together,” he said.
“It’s not as easy as saying ‘we should get a pay rise’ because most employers want to do the right thing if they can. But it will make the reward for employing someone less and less — which would increase unemployment.”
Federal Labor treasury spokesman Chris Bowen said the opposition was yet to work out the details of its minimum wage plan but did not rule out backing the ACTU’s call to set it at 60 per cent of the median wage.
“The question is, do you want a working poor or you don’t. We continue to consult about (it) and we’ll have more to say,” he said.
“The ACTU and the opposition are not the same thing. They make a case. We consider our policy options as well.”
Mr Daley has also proposed letting the Industrial Relations Commission decide payrises for public service workers.
State shadow treasurer Ryan Park said that the independent umpire, not politicians, should set wages.
WORKING HOLIDAY WIN
The Coalition will pump $7.5 million into a new campaign to lure backpackers to Australia to fill critical farm work shortages under pressure from a global shift away from working holidays.
Trade Minister Simon Birmingham wants to boost the number of backpackers from across the UK, Germany and France to fill vital gaps during harvest.
It comes as Labor has refused to rule out backing the Australian Council of Trade Union’s call to overhaul working holiday visas including axing the second year which would effectively get rid of the requirement for backpackers to do farm work.
“Each year NSW attracts just under 200,000 working holiday makers to the region, who roll up their sleeves on local farms whilst at the same time providing a major boost to the local tourism industry,” Senator Birmingham said.
“Working holiday makers basically spend every dollar they earn while in Australia, in addition to the savings they bring here, creating more jobs for Australians in our tourism and hospitality industry.
“The ACTU’s plan would abandon altogether the second year working holiday visa would remove over 36,000 Working Holiday visa holders from the Australian economy.”
“This proposal would have a devastating impact on our farmers and also hurt Australia’s thriving tourism industry.”
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