High failure rates among Australian businesses should be a red flag to the Federal Government to tread carefully with policy reforms, the nation’s retailers have warned.
Responding to ABS figures reports of a 12.7 per cent failure rate in the nation’s businesses last financial year, National Retail Association CEO Dominique Lamb said now was not the time for major upheaval for business owners.
“Sadly, we have seen one in every eight Australian businesses close their doors in the last 12 months, according to the Australian Bureau of Statistics” Ms Lamb said.
“There is no doubt small businesses are most vulnerable to closing shop right now and it’s essential that the Government keep them in mind when implementing policy changes” she said.
“For example, the push for industry-wide bargaining could be the final straw for many small businesses who need the flexibility of being able to strike their own fair individual arrangements with employees.
“Similarly, proposed changes to casual employment definitions and buy-now-pay-later credit regulations could have widespread detrimental impacts of small businesses.
“The Federal Government needs to consider very carefully how these kinds of changes could accelerate business failures.
“We want to see policy changes that help vulnerable businesses grow despite the factors working against them, instead of ones that could drive them under”.