Fears that SMEs will be hit by new OHS costs premature

Claims that SMEs will carry the costs of new national occupation health and safety laws are premature, says the Australian Chamber of Commerce and Industry chief executive Peter Anderson.

The new report commissioned by regulator Safe Work Australia and compiled by Access Economics, finds larger businesses could save up to $200 million, reported the Australian financial review this morning. But SMEs will suffer some costs in transitioning to the new laws and large companies will benefit.

The report contradicts comments from workplace relations minister Julia Gillard, who yesterday said the new national regulations would reduce the costs of compliance for SMEs.

“Harmonisation of OHS laws may be hard, but the benefits cannot be denied. Harmonised OHS laws will reduce compliance costs for Australian businesses, it will reduce red tape and the myriad of regulations and it will increase Australia’s productivity at a time when Australia needs to maximise business efficiency,” she said in a speech in Sydney yesterday.

“A harmonised national OHS regime will provide significant efficiencies for multi-state employers who will be able to ensure that their management and employees understand the one set of requirements and any changes to it.”

The new laws are also expected to raise costs for the Government, with all states and territories having signed on to introduce the new model laws by 2011.

“There will be a small increase in adjustment costs for government… partly offset by some marginal benefits in improved compliance efficiency. Combining these effects, Access Economics expects that the model act will confer an overall marginal to small net benefit,” the report states.

The model laws, as set out yesterday by Gillard, will include obligations for employers to provide a safe workplace and a broader approach to “duty of care”, increased penalties and the ability for appeals to reach the High Court. The laws will also establish three categories of offensives that can be committed by employers.

But ACCI’S Anderson says SMEs should not be alarmed, and warns the laws are still in a phase of negotiation.

“These new laws are still in a development phase. It is premature to try and identify costs because the nature of the laws is still fluid. Our early analysis is that there will be some swings and roundabouts because creating a national framework means some laws change in some states, but as a whole, the framework is not likely to be hostile to the interests of Australian SMEs.”

“The difficulties SMEs will have will be the same ones they have with current laws, meaning enforcing them and working together with OHS regulators.”