(1)   Can the Minister say what the cost will be for small business of the new industrial relations changes.

(2)   How and when will information on implementing the industrial relations changes be provided to small business.

(3)   What new fees or costs can small businesses expect to incur under the industrial relations changes.

(4)   Will lawyers be required to draw up the individual contracts.

(5)   Will information need to be provided to lawyers about the changes before they draw up the contracts.

(6)   Will small businesses be able to claim the legal fees as a tax deduction.

(7)   How long will small businesses have to arrange individual contracts for their existing employees and will they be liable for penalties if it isn’t done before the deadline.

(8)   Is the Government aware of concerns in the small business sector about the implications for them of the industrial relations changes.

(9)   Has the Minister’s department been contacted by small business representatives about the confusion the industrial relations changes are causing.

(10)   Is the Government aware of the latest quarterly MYOB Australian Small Business Survey showing that confusion in the small business sector about the industrial relations changes has seen hiring intentions fall by 11 per cent.

(11)   Will the Government undertake programs to educate small business owners about the industrial relations changes; if so, what sum will be spent on the programs and for how long will they run.

(1)   It is not possible to quantify in dollar terms the costs to small business of the WorkChoices reforms. The principal object of Work Choices is to simplify Australia’s workplace relations system and reduce the compliance costs on small business by reducing the complexity and red tape of the current six separate legislative systems in operation. However, Work Choices does eliminate costs for small business in the form of ‘go away money’ - money paid out by small businesses as a result ex-employees bring forward vexatious unfair dismissal claims. Businesses that employ up to and including 100 employees will be exempt from unfair dismissal laws.

(2)   An information and education campaign to promote and explain the workplace relations reforms to all Australian employees and employers, including small business, has been launched to coincide with the proclamation of the Work Choices legislation.

(3)   See the response to Question 1. As to fees, Work Choices will not impose any new fees on small business.

(4)   No. The introduction of a lodgement only process for individual and collective agreements has simplified agreement making. The Office of the Employment Advocate provides templates and assistance for employers and employees electing to initiate a workplace agreement.

(5)   As professionals, if a lawyer is employed to draw up an individual contract then they would need to ensure that it is a lawful contract, the same as they do for any type of contract they assist with. It is part of a lawyer’s role to keep abreast of applicable changes to the law and changes to workplace law are no different in this respect.

(6)   The Work Choices legislation amends the Workplace Relations Act 1996; I am advised that it has not amended income tax legislation. Questions on tax deductibility of specific expenses should be directed to the Australian Taxation Office.

(7)   It is not compulsory for small business to arrange individual contracts with their existing or new employees. Consequently, there are no deadlines to arrange individual contracts for existing employees. Existing agreements in place at the commencement of Work Choices will continue to operate beyond their nominal expiry date until terminated or replaced.

(8)   The Government is aware of concerns in the small business sector about what the Work Choices reforms mean for them. Education campaigns are an important part of policy implementation as they equip those affected to make the transition successfully. Accordingly, a targeted awareness and education campaign will be delivered. Additional assistance and advice will be available through the Office of Employment Advocate, the Department of Employment and Workplace Relations, and employer organisations. The latest Sensis® Business Index released on 28 February 2006 reported that industrial relations policy was the main reason SMEs gave for supporting the Federal Government.

(9)   Representations received by the Department from small businesses and industry associations have not focused on confusion about the Work Choices changes.

(10)   Yes. Other recent surveys have also explored this aspect of the Work Choices reforms. The February 2006 Sensis Business Index - Small & Medium Enterprises found that ‘Of those small businesses intending to make changes as a result of the reforms, they are most likely to do this by hiring more staff’.

(11)   See response to Question 2. Questions on program details should be directed to the Minister for Employment and Workplace Relations.