Small Business Commission and Retail Commercial Leases Bill

25 September 2024

I also rise to speak on the Statutes Amendment (Small Business Commission and Retail and Commercial Leases) Bill 2024. We on this side of the chamber know that small businesses are the backbone of the South Australian economy; in fact they contribute over $49 billion to our economy and provide almost 40 per cent of all employment. When small business is doing well, South Australia is doing well.

The Malinauskas government supports small business, and we do so by genuinely listening to the small business community and by using the power of government to deliver practical policies that make a real difference; for example, our $4 million Women in Business Program and the $6.5 million investment over the next four years accompanying the Small Business Strategy. These are both initiatives that have addressed genuine gaps in policy and have been gladly received by the many small businesses I have spoken to, both in my role as a member of parliament and in my previous role as a small business coach and mediator.

This bill addresses a real need of small businesses by ensuring that there are clear guidelines pertaining to the commissioner's role in advocacy and dispute resolution to enable more effective assistance to small businesses facing issues, such as commercial disputes, late payment of invoices and contract disagreements.

I have spoken of my passion for small business before; indeed, not only was I a small business owner before being elected to this place but my husband is also a small business owner, and both he and I come from families who were all successful small business owners. What we see in small business owners is a spirit of entrepreneurialism, a determination to succeed and a need to keep costs down wherever possible to ensure your P and L is as pleasing as it can be.

So ensuring that dispute resolution is available and in fact the first avenue to resolving a dispute is critically important because what we know is that court action is expensive and time-consuming—both commodities many small businesses do not need to be needlessly wasting. Currently, only specific industries can be mandated to participate in dispute resolution as a means of solving a dispute. This bill seeks for this to be consistent across all industries, providing a greater level of support to all small businesses, regardless of the sector they operate in.

In addition to mandating businesses' attendance at mediation, the bill also empowers the commissioner to require businesses to produce relevant documents where necessary. To enforce this, a maximum penalty of $20,000 and an expiation fee of $1,200 will be applied for noncompliance. The bill also highlights the office's role in promoting a fair and supportive business environment by not only facilitating independent dispute resolution but also acting as a conduit between small business and government agencies.

Rebranding the Small Business Commissioner to become the Small Business Commission SA aligns the office with similar structures in other states and clarifies the office's identity without altering its function. It also distinguishes the Small Business Commission SA from the Office for Small and Family Business, as this has caused confusion amongst stakeholders in the past.

Furthermore, the bill introduces a formal definition of alternative dispute resolution that excludes arbitration and expert determination, ensuring that business owners have certainty as to the extent of the dispute resolution types available.

Another significant element of the bill ensures settlement agreements reached through mediation facilitated by the Small Business Commissioner will be treated as minor statutory proceedings, simplifying enforcement in the Magistrates Court.

In addition to the changes to dispute resolution processes, the bill enacts changes, originally proposed by the Law Society of South Australia's Property Committee in 2018, to the Retail and Commercial Leases Act. These are significant changes that provide certainty to small businesses.

As an advocate for small and family businesses in my electorate, I want to thank the Minister for Small and Family Business, Andrea Michaels MP, for her ongoing commitment to improving regulation and support for South Australia's small businesses. I know that, as someone who has been involved with small business herself for many years, Minister Michaels understands the challenges, joys and sheer hard work that go into running a business.

Minister Michaels spearheaded the development of the South Australian Small Business Strategy and ensured it was a genuine reflection of the needs of South Australian business owners by undertaking the most comprehensive and intensive engagement program with small and family businesses this state has ever seen and ensuring it was backed up with substantial funding, as mentioned earlier, of $6.5 million.

To that end, I want to acknowledge the many small businesses in my electorate: the many cafes, restaurants, pubs and bars, gift shops, clothes shops, homeware shops, professionals and many more. We understand the difficult business environment you are currently operating in. This bill seeks to provide small businesses with the support they need to overcome some of the challenges they may face, which can mean the difference between success or failure, and to support their growth and resilience.

Along with our $14 million Small Business Strategy and other programs like the Small Business Fundamentals Program, the Women in Business Program and the Small Business Digital Capability Program, the government recently announced round 2 of the Economic Recovery Fund, offering energy efficiency grants of up to $50,000, with $20 million allocated to this round. The initiative aims to help up to 8,000 businesses lower their energy costs.

The Statutes Amendment (Small Business Commission and Retail and Commercial Leases) Bill 2024 demonstrates that this government is listening to the small business community and values the incredible contribution small business makes to not just our economy, as important as that is, but to our society and to our local communities.