The Entrepreneurial & Small Business Women Australia (ESBWA), an influential advocacy group dedicated to championing the interests of female entrepreneurs and small business owners across Australia, is raising a red flag as the government explores potential changes to the definition of independent contractors.
In their official submission to the inquiry into the Fair Work Legislation Amendment (Closing Loopholes) Bill, ESBWA has articulated the pressing concerns surrounding the proposed modifications. These alterations have the potential to affect not only the 1.1 million individuals currently operating as independent contractors but also the small businesses they collaborate with.
This formidable organization, representing a robust community of over 12,500 female business owners, voices its apprehensions about how the amendments to the bill might introduce an undue burden on businesses. ESBWA’s founder and CEO, Amanda Rose, underscores the gravity of the situation, stating, “Empowering women economically is a litmus test of the government’s dedication to gender equality. Overlooking the needs of female business owners in this legislative amendment would represent a regressive step.”
ESBWA contends that the proposed changes could potentially curtail the flexibility enjoyed by independent contractors, thus potentially hampering the growth of small businesses, particularly those led by women.
The envisaged adjustments to the bill could jeopardize the autonomy of sole traders by rendering it more challenging for them to secure contracts with larger businesses. The added costs such as insurance and leave loading for contractors may act as a deterrent for businesses considering outsourcing work to sole traders. This, in turn, could compel many female sole traders to work longer hours or accept more contracts to maintain their income, effectively negating the very advantages that initially lured them into gig work.
Amanda Rose passionately affirms, “Female sole traders are drawn to the gig economy because of its inherent flexibility, allowing them to effectively balance multiple responsibilities while earning income on their own terms. Altering the sole trader definition could considerably curtail the options available to women for business growth and financial independence.”
Faced with the increased requirements for hiring contractors, businesses may opt to engage employees or exclusively work with proprietary limited companies. While unintended, these proposed changes might inadvertently impede the progress of businesses that heavily rely on the cost-effectiveness and agility of contractors to foster expansion.
ESBWA emphatically underscores the imperative for legislators to take into account the unique needs of female independent contractors to ensure the continued potential of this burgeoning sector.
Amanda Rose passionately reinforces, “When we disregard the concerns of female business owners, we marginalize a substantial segment of our economy. Businesses led by women make substantial contributions to our national growth, and their voices must absolutely take center stage in this inquiry.”
In this climate of economic transformation, it’s crucial to ensure that gender equality and the growth of small businesses remain at the forefront of legislative considerations.
