The Canberra Business Chamber has urged the ACT Government not to expand the portable long service scheme. The Standing Committee on Economy and Gender and Economic Equality has recommended that the Legislative Assembly pass the Long Service Leave (Portable Schemes) Amendment Bill 2022.

Chamber CEO Graham Catt said: “The Committee received submissions from small businesses, industry representatives and business groups that highlighted the costs to business, the lack of real benefits for workers, and the fact that a portable long service scheme is not appropriate for the sectors targeted.”

“The ACT Government needs to listen to these businesses and their representatives who are begging them not to make these changes.”

“The ACT Government says it wants to make it easier for businesses to start, run and grow in the territory. We can’t understand, therefore, the introduction of a bill that adds cost and complexity to local businesses. Our members are struggling to find staff, struggling with spiralling costs and supply shortages and doing everything they can to avoid passing on these costs to customers,” said Mr Catt.

“Yet somehow, in this environment, the ACT government believes it is appropriate to introduce more rules, create more complexity, and add more costs for local small businesses. The Government has provided no evidence or data to demonstrate and quantify any benefit to employers or the economy, or exactly what benefit will flow to employees.”

The Chamber says that any expansion of the portable long service leave scheme must be based on proper analysis of the costs, risks and benefits for workers, business, and the economy. It should follow a proper consultation process with industry and employees to determine where expansion would be appropriate and deliver positive outcomes.

At a minimum, the Chamber argues, any expansion of PLSL needs to be accompanied by parallel changes to offset the financial impact on employers.

Mr. Catt said: “We call on the Government to use their resources to thoroughly investigate the implications of an expansion of portable long service leave, to engage in genuine consultation with industry, and not to impose new rules that will deal small business another blow at the worst possible time.”

Read our full submission.

-ENDS-

Media Contact: Graham Catt, CEO
CBC Office: 02 6247 4199