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The council also calls for the regulation of BNPL products, insurance reform and the restoration of instant asset write-offs in its pre-budget submission.
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Government must fund domestic violence leave for SMEs: COSBOA
17 February 2023
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10 minute read
The government must fund family and domestic violence leave for small businesses or risk the scheme failing, Council Of Small Business Organisations Australia (COSBOA) says in its budget submission.
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“We seek for the government to fund all payments relating to family and domestic violence leave for small businesses and to engage in ongoing small business stakeholder consultation with respect to this issue,” said COSBOA’s submission.
“We seek a greater level of financial support from the government to ensure this important form of leave is able to be taken as needed without adversely and disproportionately affecting small business employers.”
The body also recommended the government conduct a review of the insurance environment following widespread natural disasters with the view of removing barriers to availability and providing incentives for state reform, alongside subsidies to improve small business resilience.
“It is essential for increased resources to be invested in improving disaster recovery and community resilience measures along with appropriate insurance solutions which are not significantly influenced by overseas assessments,” it said.
“COSBOA advocates for the development of a scalable disaster support program for small businesses, along with the development and use of web-based portals that aggregate existing publicly available information to assist in the assessment of business interruption insurance claims.”
“We seek a comprehensive review of the insurance environment for Australia with the objective of reducing premiums based on the correct risk assessment for Australian business and consumers.”
The lack of regulation of buy now, pay later (BNPL) products was also raised by COSBOA with a recommendation that government close exemptions for the products.
“Any proposed regulatory changes to regulate BNPL should reflect a proportionate and risk-based approach that is consistent across the entire credit and lending ecosystem,” said the submission.
“Regulation should target market participants who are engaging in undesirable conduct, and should not disproportionately and adversely affect those who are not engaging in undesirable conduct or do not have market power.”
“COSBOA recommends regulating BNPL under the National Consumer Credit Protection Act 2009, including the requirement for providers to comply with responsible lending obligations. A revised complementary code of practice should be introduced, including improved dispute resolution services for customers and small businesses.”
The council also recommended that the instant asset write-off (IAWO) be restored for assets below $100,000 because it stimulated small ticket business investment.
“The IAWO should be set for the next three years, with any subsequent proposed change to the threshold being set with 18 months’ notice.”
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