Proposed minimum wage hike could cripple small business

Thursday, 01 February, 2018

Proposed minimum wage hike could cripple small business

The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) says the Labor party’s call for a minimum wage rise would cripple small business operators.

The Ombudsman, Kate Carnell, suggests that the proposed hike represents a war on small business, not big business.

“The greatest impact would be on businesses that use awards, and that is small to medium businesses, which make up more than 97% of businesses in Australia.

“Nearly half of our small business owners already earn less than the minimum wage and for these people, an increase in awards will mean job losses, limited employment opportunities and businesses closing,” Carnell said.

She believes the consequences of raising the minimum wage should be thoroughly investigated before any action is instigated, with particular focus on the impact to small business.

“A reality check on this issue is certainly required.

“The sentiment coming through this morning from small business is that they are already doing it tough.

“They are saying they would like to pay themselves and their employees more, but are literally struggling to pay their ever-increasing business bills.

“When 97% of Australian businesses cannot afford to employ more people, the spark of confidence and potential for economic growth we are seeing will be extinguished,” Carnell said.

Image credit: © Zabel

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