News today that small businesses in Queensland are being blocked from accessing recovery is extremely disappointing.
While the Government uses varying definitions of a small business across its own operations, from the Australian Tax Office to Fair Work Australia, it seems it is applying a rigid test of 20 full
Of particular concern was the report that two small businesses with less than 20 FTE employees that were not eligible for disaster assistance because they operated under the same Australian Business Number.
The Apex Auto Motor Group in Milton is ineligible for grants due to the two combined businesses employing 29 people and using a single ABN for reporting purposes.
However, if the business used two ABNs, one for each business, it would be eligible – TWICE!
Another business, the iconic Champions Brock Experience in Yeppoon, will close following the floods due to the loss of customers after being completely cut off.
Because Champions Brock Experience was not directly flooded, it is not eligible for disaster assistance in the form of grants and loans, yet without tourists being able to visit it is also a victim of this disaster.
Last week Treasurer Swan was reported as ”urging the insurance companies to do the right thing . . . and to show a bit of common sense”.
Similarly, the Prime Minister stated:
“My message to the insurance industry would be to show the same kind of spirit the people of Australia have been showing as they’ve really pulled together in these very difficult circumstances.”
“The least the Commonwealth Government could do is to ensure bureaucratic barriers like an ‘ABN number test’ are removed as small businesses seek to recover and reopen,” Senator Ryan said.
“Minister Sherry should come out and fix this immediately – and ensure that no further red tape is put in the way of small businesses seeking to get back to work and rebuild following these tragic floods,” Senator Ryan added.
“It is time for the Gillard Labor Government to show the same ‘compassion’ and ‘common sense’ for the thousands of business that have been affected by the floods that it is calling for in others.”
Senator Ryan also reiterated the Coalition’s recent call for small business to be provided with a GST and PAYG holiday to help cash flow and give temporary breathing space for the recovery phase.
“This is both a compassionate and common sense approach and Labor’s refusal to adopt this idea shows it is out of touch with the needs of small business in these difficult times,” said Senator Ryan.