From wage compliance to drafting contracts: Here’s how the budget’s $134.6 million deregulation package will help SMEs

federal-budget

Small businesses are set to benefit from the government’s $134.6 million deregulation package, which aims to help employers comply with workplace law using tech solutions.

The federal government’s deregulation package, announced as part of the federal budget, is intended to support Australia’s economic recovery by “cutting red tape for businesses interacting with government”.

The government estimates the package will reduce compliance costs for businesses, individuals and not-for-profits, by $430 million annually.

We’ve broken down what the package contains and how it will help SMEs.

More funding for the Employment Contract Tool

The government will spend $7.2 million over three years to improve the Employment Contract Tool, which helps employers make employment contracts that comply with workplace law.

The tool, which already exists at business.gov.au, allows employers to download an employment contract and letter of offer in less than thirty minutes.

Currently, it’s not available for apprentices and trainees, piece workers, seasonal workers, independent contractors, and employees under enterprise agreements.

Tech solutions for wage compliance

Small business can also expect to benefit from the government’s $10 million investment in regulatory technology.

This funding will go toward the development of new digital tools that will help employers understand and comply with modern awards.

What else does the deregulation package include?

Over the next two years, the government will spend $3.9 million on reviewing how regulatory agencies recover the costs of their activities in a bid to make compliance costs cheaper for businesses in the longer term.

Business owners in trades using multiple professional licenses when working across different states will benefit from an $11 million investment in an automatic mutual recognition scheme.

The scheme is expected to simplify licensing requirements for 124,000 people.

Childcare providers will be supported through a $16.9 million investment over four years, which will streamline the child care regulatory system by building a single government website to reduce the administrative burden on providers.

The government will also spend $20.1 million to improve data integration and electronic vessel monitoring systems, reducing regulations imposed on commercial fishing businesses.