CCIWA has joined industry in raising concerns about proposed changes to the procedures for small claims in the Federal Court, which would allow applicants to seek costs orders against employers for claims worth up to $100,000.
The Australian Chamber of Commerce and Industry (ACCI) says such a change, flagged in the Review of the Fair Work Act Small Claims Procedure Report is the last thing small businesses need after years of complex industrial relations change.
And it comes as CCIWA has called in its FY2025-26 Federal Pre-Budget Submission for the establishment of a small business division of the Fair Work Commission “to provide quick decision-making for small businesses”.
“The Federal Government should establish a small business division of the FWC and ensure sufficient resourcing to provide tailored support and advice for small businesses,” the submission says.
ACCI CEO Andrew McKellar said the proposed “asymmetrical changes” to costs orders in discrimination applications should worry employers everywhere if that model is transplanted into the workplace relations system.
“Notwithstanding the fact that $100,000 should not be categorised as a ‘small’ claim, small businesses face the very real possibility of being financially crippled under the proposal,” he said.
“It’s alarming that under the proposal it appears that employers would conversely not be able to seek costs orders against applicants that are unsuccessful even if they have wasted an employer’s time and resources by dragging a dispute to the Federal Court.”
The Review recommends deferring consideration of creating a small claims jurisdiction within the Fair Work Commission.
CCIWA’s Pre-Budget submission also calls on the Government to:
- Lift the definition of small business in the Fair Work Act to define a small business employer as any business with a headcount of less than twenty-five employees.
- Conduct a regulatory review of small business definitions with the aim to harmonise definitions to reduce the regulatory burden placed on small businesses
- Ensure independent regulatory impact assessments are conducted on regulatory reform to minimise the regulatory burden placed on small businesses.
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