Is your business across the regulatory changes affecting SMEs in 2012? Here are the top ones, according to the Smart Company website.

Queensland is one of four states set to be ready for the national harmonised OH&S laws where companies have broader obligations to consult with people performing work, including contractors; officers of a corporation will be required to exercise due diligence to ensure the organisation complies with OH&S responsibilities; and prosecutors will need to prove the employer did not take all reasonably practicable measures to prevent the risk to health and safety from taking place. It has been suggested businesses need to spend some time doing a gap analysis to ensure they comply with the amended laws. See http://bit.ly/workplacelaws

The end of 2011 saw a rash of industrial relations disputes which called into question the efficacy of the government’s Fair Work Act. The Act is up for review this year but since significantly altering it is an admission of fault in the first place (remembering PM Gillard authored the Bill) we’re unlikely to see much movement in fixing the mess the Act seems to have created for employers with increased Union powers and entitlements, and protected strike action. From BHP to Qantas, the waterfront to XXXX Brewery, Union officials are buoyed by an Act that enables protected walk outs and powers to interfere in genuine business management and corporate restructuring that leads to protracted negotiations. Something has to change in 2012. Not surprisingly the ACTU is lobbying the government for changes to the Act before other interest groups get to have their say, with the unions negotiating with the government before the ALP national conference took place on 2 December. According to the Australian Chamber of Commerce and Industry chief Peter Anderson whilst the big companies grab the headlines, the system regulates employers in the SME industry just as much if not more so with higher labour costs under awards, new adverse action and unfair dismissal litigation and the compliance nightmare when Fair Work laws are added to other regulation being daily issues for SMEs. We’re in for interesting IR times ahead. The report from the review committee is expected to be with the Minister by May 2012.

I’ve written before on the new Australian Consumer Law (Warranties – Who’s Responsible?) but it was interesting to see the number of retailers over the Xmas period still failing to comply with obligations. From 1 January fines of up to $1.1m can be imposed for non-complying retailers so it’s important businesses get across the consumer guarantees. Primary amongst them is a consumer’s right to refund or exchange on faulty products regardless of whether they are on sale or not. ‘No refund’ signage, including ‘no refunds on sale items’ signage, is illegal. Additionally, the new laws also make the offering of extended warranties a tricky area since the law now covers consumers for what an extended warranty may have offered. Sales staff must be careful not to suggest that an extended warranty offers benefits not already available under the consumer law. And consumers should ensure they understand exactly what their rights are under the law and what they are paying for if they decide to purchase an extended warranty.

Tax changes will apply from 1 July with a reduction in the company tax rate to 29%, an increase in the instant write-off threshold to $6500 for all business assets, the replacing of two depreciation pools with a single depreciation pool, and an immediate write-off for the first $5000 of the cost of a motor vehicle purchased from 1 July. But remember the entrepreneurs tax offset will be scrapped which had provided an automatic tax rebate of $2750 to micro-businesses.

© Lyn Prowse-Bishop, www.execstress.com