Senate debates

Monday, 14 September 2015

Bills

Treasury Legislation Amendment (Small Business and Unfair Contract Terms) Bill 2015; In Committee

12:32 pm

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | Hansard source

I indicate to the Senate that Labor will be supporting Senator Whish-Wilson's amendments. Lifting the threshold means that the application of unfair contract term provisions to small business will be far wider than if the threshold remained at $100,000. Indications are that the majority of small business groups support unfair contract term provisions applying to their business to business contracts. This is evidenced by the recent media announcement that major representative groups, including the Independent Contractors of Australia and the Council of Small Business Australia, will campaign against the government for what they consider to be a broken promise in that the coalition went to the last election promising small business it would bring this measure in, but the $100,000 threshold narrows who will be affected or will benefit from the changes. Labor notes the original preferred position of Independent Contractors of Australia was no threshold, and the stakeholder consultation from the start has also indicated to the government that they want new laws to apply to the vast majority of small businesses. Having said that, I think we have to acknowledge the point that has been made that a line has to be drawn somewhere, and as a consequence we will not be supporting Senator Day's foreshadowed amendment.

While I am on my feet, I might deal with Senator Leyonhjelm's foreshadowed amendments on sheet 7759. Labor will be supporting those amendments to the implementation time of the legislation. Labor notes that serious concerns have been raised about the six-month time frame for the implementation of this legislation, and these concerns are exacerbated by the increase in the threshold given this will increase the scope of the legislation. Feedback in this regard has been received from groups such as the Australian Bankers' Association. Given amending the thresholds in isolation will have consequences for these groups who need more time to implement, Labor will be supporting the amendment.

I have said that in one block because I think we will probably spend a considerable of amount time on these matters given the positions are quite clear in terms of what the government has said and what the crossbenches have said. I have made it very clear what Labor's position is. I trust the matter can be resolved.

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