Budget grants $20.5 million for Fair Work to help SMEs with IR compliance

The federal government has recognised that SMEs may need help complying with its ongoing industrial relations reform program and has allocated $20.5 million in this year’s budget for that purpose. 

The funding for the Fair Work Ombudsman will be spread over four years, and include $5.1 million a year in ongoing funding commitments. 

The stated purpose, according to the budget papers, is to “support small business employers to comply with recent changes to workplace laws”. 

In particular, the funding will go towards enhancing the Employer Advisory Service and making it permanent, as well as supporting the implementation of the recently proposed ‘right to disconnect’. 

At the same time, the Fair Work Ombudsman will also receive $27.5 million in funding over four years, and $7 million a year thereafter, to crackdown on non-compliance with the Fair Work Act by big businesses. 

The government says it is also “making it easier for small businesses to support their employees” with $60 million in funding, over four years, to increase the Productivity, Education and Training Fund. 

According to documents accompanying the budget papers, this funding will allow the fund to “support practical activities by employer and worker representatives to boost workplace productivity and engage in tripartite cooperation”. 

The same funding will help employers implement policy changes such as payday superannuation, according to the budget papers. 

Services Australia will also receive $10 million to help small businesses administer the expanded paid parental leave scheme, as part of a deal the government reached with Senators Jacqui Lambie and David Pocock earlier this year.