The Victorian Regional Chamber Alliance (VRCA) and Latrobe City Business Chamber (LCBC) is calling for the Victorian Government to “cut business a break” as the situation for business continues to worsen around the state.
It is no secret that businesses are doing it tough across the country due to significant increases in fuel, insurance premiums, staff/skill shortages, wages, operating costs and red tape.
Whilst they might be seeing similar revenue to pre pandemic Victoria, operating costs have skyrocketed, and even super savvy business owners are starting to run out of options to streamline their enterprises.
A primary example of additional red tape is the recent change to the Food Safety Act that comes into effect this month and requires all food businesses to have an accredited Food Safety Supervisor on every shift. To comply, any business that serves food must pay for a staff member to complete additional training, which includes the cost of the course and the wages for 8 to 9 hours of training.
Victorian businesses must contend with more challenges than their interstate counterparts. A research study released by the Victorian Chamber of Commerce and Industry in 2022 determined Victoria was the hardest place in Australia to do business, with the largest public sector, the most red tape and the highest number of public holidays.
For regional businesses, the additional burden of severely damaged and poor-quality road networks makes being in business nearly impossible.
“Some businesses did not survive Covid but those that did are exhausted, still clearing debt and dealing with ongoing mental health issues for themselves and their employees. Every day they face continual challenges just trying to stay in business!” says the VRCA.
“How much longer can they be expected to hold on without real support from Government? It is no wonder that our Chambers and Business Groups frequently hear the cry, ‘It would be a much simpler and better life to walk away and get a job! With small business being our largest employer this is extremely concerning” the VRCA says.
With so much to contend with it is no surprise that workplace mental health and psychosocial hazards are at the forefront of many discussions, yet this is now to be an additional stress point for business owners.
Under the model WHS laws, a person conducting a business or undertaking (PCBU) must manage the risk of psychosocial hazards in the workplace and this comes with its own set of regulations to comply with.
“They are dealing with so much, just to stay afloat,” says the VRCA. “We would even argue it’s too much. It’s time to give our businesses support and make being in business worthwhile again,” said the VRCA.
It also goes without saying that once again Chambers of Commerce and business support groups are feeling the pinch, with membership cancellation rates at an all-time high and those that have held businesses over with complimentary memberships are at a point where this needs to cease. The State Government acknowledged the importance of business support organisations during the pandemic, making small grants available to assist them to continue their important work. We must see a focus in 2024 on a return to support for small business and those that nurture them.
We implore the Government to respond to the ever-worsening situation in our business community. The VRCA is available to discuss further at any time that is convenient.