Canberra Liberals Leader Mark Parton has slammed the ACT Labor Government’s decision to include hospitality workers in the portable long service leave scheme, warning it will further strain an already struggling sector.
“This is yet another blow to small businesses already under immense pressure,” Mr Parton said.
He said Canberra cafés, restaurants and venues are already grappling with rising costs, staff shortages and ongoing economic uncertainty, and that the new policy adds an unaffordable burden.
The Liberals Leader rejected the government’s characterisation of the scheme as reform, stating, “This is not reform, it’s a tax.”
Under the scheme, businesses must pay a levy for every worker, regardless of whether they ever access long service leave. Mr Parton said this is especially problematic in a sector with high turnover and casual employment where many employees would never reach the threshold to claim long service leave.
“That means local cafés and restaurants will be forced to fund a system where the benefits are only realised by a small minority.”
He also warned of increased red tape, saying the policy would require complex registration, reporting and compliance.
“There is a real risk this will put ACT businesses at a competitive disadvantage compared to nearby NSW venues,” Mr Parton said.
In a CityNews column (March 24), industrial relations lawyer Richard Calver observed that for food and beverage outlets, the most immediate effect of the ACT Government’s complex portable long service leave scheme would be financial.
“Employers must pay a levy of 1.07 per cent of the gross ordinary wages of covered employees into the portable scheme. For some employers, particularly small cafés and restaurants operating on thin margins, the levy represents a burdensome additional payroll cost,” Calver wrote.
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