With the South Australian Parliament set to determine the future of the South Australian business community today, peak industry bodies have heard directly from businesses that there is no support for a 30 per cent increase to ReturnToWorkSA premiums.
The Australian Industry Group, the South Australian Business Chamber, Food South Australia, Master Builders South Australia, Motor Trade Association of South Australia, and the South Australian Wine Industry Association conducted a survey between 8 – 10 June 2022 to determine how businesses would be affected should the Amendment to ReturnToWorkSA Bill not pass in Parliament. 756 businesses responded within just over 36 hours of the survey being open.
The South Australian Business Chamber Director of Policy and Advocacy Kendall Crowe says this is the perfect storm of rising costs for business. The mums and dads who own these businesses will soon have some big decisions to make — pass on the costs to customers, reduce staff numbers, or shut the doors for good.
Australian Industry Group SA Head Jodie van Deventer says that if the legislation does not pass and ReturnToWorkSA premiums rise by 30 per cent, businesses have told us that they will need to limit wage increases, reduce staff numbers and also reduce staff hours.
Australian Hotels Association SA Chief Executive Ian Horne says that only one-quarter of businesses said they could absorb the additional increased costs of the ReturnToWorkSA premiums.
Food South Australia CEO Catherine Sayer says that something that is not understood is only a quarter of businesses even knew what the impact of the Summerfield vs ReturnToWorkSA decision would be on their costs, leaving many vulnerable with imposed additional costs to their business.
Housing Industry Association CE Stephen Knight says that a possible 30% increase in premiums on top of the 5.9% already announced for 2022 – 23 is outrageous, no business should be expected to just suck up this level of additional cost.
Master Builders South Australia CEO Will Frogley says that business owners are watching to see what happens – frankly they are frustrated and bewildered and some are downright angry. The building and construction industry is facing the highest inflation of material costs in 40 years and cannot afford further cost increases.
Motor Trade Association of South Australia CEO Paul Unerkov says that now more than ever, the business community wants to see leadership to make decisions in the best interests of South Australia.
South Australian Wine Industry Association CE Brian Smedley says that almost all businesses have already faced increases in the cost of materials, transport and products, and three-quarters have had increases to their electricity costs.
Tourism Industry Council of SA CEO Shaun deBruyn says that tourism operators are only at the start of their recovery and are facing an uphill battle with rising costs and consumer confidence being challenged. This will be another blow that many cannot take.
Together, these nine peak industry bodies call for all South Australian parliamentarians to pass this legislation.
