Newly announced exemptions are for businesses comprising of 15 or fewer employees.

The government has announced a number of exemptions for small businesses for the Closing Loopholes Bill, introduced into Parliament this week.

The exemptions are for businesses comprising of 15 or fewer employees. The legislation is aimed at closing loopholes that undercut the pay and conditions of Australian workers; however, the government has announced it will include the following exemptions:

Exempting small business employers that use labour hire from pay obligations under the ‘Closing the labour hire loophole’ measure
A longer 12-month service period for casual employees of small businesses to access the new voluntary casual employee choice definition pathway to change to permanent
Development of a Voluntary Small Business Wage Compliance Code to provide certainty for those who inadvertently commit wage underpayments, ensuring only intentional wage theft is punished
Small businesses not being required to provide access to paid time for workplace delegate training

Under the legislation, Australian employers who deliberately underpaid workers could face a maximum possible penalty of 10 years imprisonment and maximum fines of up to $7.8 million – or three times the amount that was underpaid if that amount exceeds the maximum fine.

“Ideally you want the same rights for people in every workplace, but we have to take account of the fact small businesses don’t have an HR department,” said Minister for Workplace Relations, Tony Burke.

“We need to minimise the regulatory burden on small business where we can.”

Minister for Small Business, Julie Collins, said the government wants to ensure the policies are appropriately targeted and provide the support that small businesses need.

“These sensible exemptions will level the playing field and ensure that small businesses can continue making their valuable contribution to the Australian economy.

“Small business is at the heart of our government’s decision making, and we will continue to deliver our positive agenda for them and the millions of Australians they employ.”

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