Nickolas Varvaris (Barton, Liberal Party) Share this | Hansard source

It gives me great pleasure to be able to speak today on the Australian Small Business and Family Enterprise Ombudsman Bill 2015, because of the many positive ebbs and flows associated with this bill. Small businesses are vital to our economy because they are the backbone of our nation. Every time a small businesses is created job opportunities are created, and this contributes to our nation's bottom line. Starting a business converges into our national ethos of having a go. It represents that unwavering Australian trait of giving it your best shot and creating something for your children and your family and in leaving a legacy. We must do all we can to ensure that small and family businesses have the best access to resources when they need it and that they have the confidence of government to take necessary risks for their enterprises.

The coalition has always been committed to the small businesses and family enterprises of Australia because we understand that all businesses start off small, often family run, passing on from one generation to the next. In fact a quick snapshot of this sector shows that family businesses account for around 70 per cent of all businesses in this country, with an average turnover of $12 million. Small businesses represent approximately 97 per cent of all Australian businesses and employ around 4.6 million Australian people. Their tireless contributions, perseverance, hardship and success are felt in every electorate across this country.

In Barton alone there are over 13,000 small businesses, which employ locally and provide vital goods and services to the good residents of the St George region. In Kogarah, for example, family-run small businesses include Eve's Apple is consistently busy because they work long hours to meet the demands from customers and to ensure that the products they sell are of the highest quality and offered at the lowest prices. Eve and George have operated this business for more than 22 years and are hoping to pass it on to one of their four children. As Eve has said, no-one in this family is unemployed, and it is unlikely that they ever will be as long as this business is there.

Across the road is a popular women's boutique, a clothing store called Something Nice. This is a second-generation business started by two sisters in 1975. It has continued to support up-and-coming Australian designers whilst being a top destination for local shoppers, my wife included. Around the corner from Something Nice is Kaimaki Cafe, which is a thriving family-run business that operates six days a week. Owner and manager Nick runs the business and the team, while his daughter provides customer service to a never-ending line of customers. The only time the family takes a break is over Christmas and New Year. Over in Earlwood, Cafe Frappe, Christina's Pharmacy and Ray White Real Estate are all family owned and run businesses that are highly successful, well regarded amongst the community and thriving with local patrons.

I know from my visits and from what they have told me how hard they must work to ensure that they stay afloat, keep the staff employed and turn a profit. They are often competing with well-known franchises, bigger supermarkets or the threat of other one-stop-shopping destinations. As their federal representative, I want to advocate on their behalf to help them run their businesses without unnecessary red tape and bureaucracy. Businesses cannot survive if they spend more time doing paperwork than running the operations. They also cannot survive or remain viable long term if they do not have the assistance needed. Small businesses do not have access to resources such as human resources, compliance, legal and so forth like larger businesses do, although they are often treated as though they do. Instead they rely on staff and often themselves, working late into the night and on weekends to wade through the hundreds of pieces of legislation and awards at both state and federal levels to ensure they comply with the law. If they run into issues, they often have to search for a phone number or government department hotline to try to obtain the relevant answers to their questions.

Therefore, a good regulatory regime can make a difference to the productivity of businesses and decisions about potential investment or further costs associated with a service or product in hopes of return on investment. A university study in 2012 found that small businesses in Australia were spending around $28,000 and nearly 500 hours a year working on red tape and compliance burdens. Navigating through the legislative framework governing taxation, human resources and industrial relations is a full-time job in itself, let alone something to attempt after 12 hours of working in the business. Yet this is something that all small and family business in Barton and right around Australia have to do every day.

There is no doubt that legislation is necessary, but the need for compliance should not be at the detriment of running a business. Similarly, where businesses have trouble with interstate and international commerce and certain disputes relating to Commonwealth government agencies, they often do not know where to turn or simply lack the resources or the time to do so. I note that , when the Coalition implemented a dedicated small business support line within Fair Work Australia, it was inundated with calls within the first eight months. This clearly demonstrates the need for support for this vital sector. That is also why it is high time that family enterprises and small businesses have access to the relevant legislation, policies and practices within reach, so needs can be readily identified and solutions provided.

The ombudsman bill up for debate today fulfils a key election commitment to provide support for the multitude of small businesses and family enterprises of Australia. The ombudsman set up under this bill has two key functions: an advocacy function and an assistance function. The advocacy function provides an avenue for small businesses and family enterprises to have an appointed individual to appeal on their behalf. The advocacy function expands the current role of the Australian Small Business Commissioner and has increased legislated powers. Furthermore, the ombudsman may make inquiries on the ombudsman's own initiative, or the minister may refer matters to the ombudsman for advice. The ombudsman will take a collaborative approach on systemic issues affecting small and family businesses and will consult on proposed and existing legislation and regulations to guarantee that red tape burdens on small businesses and family enterprises are minimised or eliminated.

We have already cut $2 billion in red and green tape costs, but we can do more. The ombudsman will be equipped with assistance functions through two streams, one being a concierge and the other being a referral service for alternative dispute resolution services. The concierge role is one that I wish to highlight as being extremely beneficial for small business owners, like Eve and George, whom that I mentioned earlier, and Nick at Kaimaki Cafe. The ombudsman can provide them the support and the guidance they need for existing services which they may be unaware of.

Another important function that I wish to highlight is the ombudsman's provision of an outsourced dispute resolution service as well as referral to other alternative dispute resolution services. There is a real need for ADR services that are fast, low-cost and accessible to small businesses and family enterprises. Unresolved disputes can significantly impact the ongoing viability of small businesses and family enterprises, hindering them from contributing to the economy. The choice and availability of ADR services can help preserve business relationships and avoid unnecessary and expensive lawsuits.

I want to reiterate that the ombudsman's role is not about duplicating existing functions within the Commonwealth, states and territories. Importantly, the expanded powers of the ombudsman will reinforce our philosophy that small and family businesses do not have to understand government in order to ask for help. Rather, we are here to assist businesses and help facilitate better access for the issues they face.

Australia's economy would not move without the men and women behind the small businesses and family enterprises sprinkled across our country. These businesses contribute enormously to the economy and play a key role in growth and economic opportunities. Without them, Australians would have no jobs. We said during the election campaign that we are here to help them and support them and that we will implement policies that enable them to do what they have set out to do, without unnecessary red tape and bureaucracy.

The ombudsman represents a positive opportunity to establish a highly-regarded advocate who will act as a medium for issues that small businesses and family enterprises face at the Commonwealth level. This is also an opportunity for the ombudsman to play a leadership role in collaborating with state and territory channels as well as industry bodies to voice concerns of the small business sector that can be underrepresented due to a lack of resources or knowledge. I would hope that this legislation will garner support from both sides of the House, because it should be bipartisan. Supporting the engine room of our economy is in the best interests of all Australians and should be endorsed by both sides. The coalition firmly supports the small businesses and family enterprises in Barton and around Australia. I commend these bills to the House.

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