Business groups, entrepreneurs and lobbyists are busy working the phones this morning as they try to work out the implications, opportunities and threats presented by Prime Minster Julia Gillard’s new ministry.
Reviews of Gillard’s appointments have been decidedly mixed. While good performers like Greg Combet and Simon Crean have been rewarded with enlarged responsibilities, Gillard’s decision to reward the key plotters in the coup against Kevin Rudd – Mark Arbib, Bill Shorten and Don Farrell – has been heavily criticised.
One of the biggest areas of change has been around business-related ministerial portfolios, with Small Business Minster Craig Emerson promoted into Cabinet and replaced by former Assistant Treasurer Nick Sherry, who has been dropped to the outer ministry.
Here are the five key new appointments for SMEs to watch:
Sherry is considered one of the most unlucky people in the reshuffle – despite doing a credible job as Assistant Treasurer, he’s been dumped out of Cabinet and is now in charge of Small Business. While he does has some runs on the board in terms of cracking down on phoenix companies and helping to get tax relief for small business during the GFC, the big minus is his stated views on independent contractors avoid becoming employees to dodge tax. A threatened crackdown never eventuated, but independent contractors are unlikely to welcome his appointment.
Shorten takes Sherry’s old job in a particularly controversial appointment. As Assistant Treasurer he will also have responsibility for financial services and superannuation, meaning he will be overseeing reform of the financial planning and super systems, plus the Government’s plan to increase the super levy paid by employers from 9% of an employee’s wages to 12%. He will also have the ability to push for changes around independent contractor tax arrangements, first mooted by Sherry. Independent contractors will be waiting to see his views on this hot topic.
Craig Emerson has been promoted from Small Business to Trade, earning himself a place in Cabinet along the way. But with the Australian dollar hovering around US93c, Emerson could have some early challenges in promoting Australian exports. While he has signalled his early focus on world trade talks, SMEs will want to see Emerson fight for more funding for the popular Export Market Development Grants, the size of which has been falling in recent years. If we want to increase SME export participation, these grants are crucial.
The IR portfolio is always a crucial one, and former union official Chris Evans will face some big challenges. On the one hand, unions are continuing to push for changes to IR laws around casual work and job security, while on the other hand employers are becoming increasingly concerned about skills shortages. His big priorities will be continuing the process of bedding down the Fair Work regime (still in its relative infancy) and developing strategies to increase training and skills programs.
Senator Penny Wong moves from the controversial Climate Change portfolio to the crucial job of Finance Minister. Wong has big shoes to fill – retired finance minister Lindsay Tanner was highly regarded and played a crucial role in the Budget preparation process. As such, Wong will need to balance Labor’s promise to get the Budget back into surplus in three years with its need to keep the independents and Greens onside, potentially with new policy initiatives.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
