Deal done to split Closing Loopholes Bill

12 DECEMBER 2023

The Federal Government, on 7 December, made a deal with crossbench senators David Pocock and Jacqui Lambie to split the Closing Loopholes Bill (CL Bill), to enable it to rush several contentious amendments through the Senate, without proper scrutiny.

VACC strongly opposed the CL Bill, principally because it sets businesses up to fail. It does this by proposing changes that will make it more complex and uncertain for employers to comply with the law – while threatening employers with new extreme penalties if they get it wrong. VACC, through the Motor Trades Association of Australia (MTAA), lodged a detailed submission on these issues to the inquiry. Frustratingly, while the Senate Committee will not issue its report until 1 February 2024, several contentious changes – including a number that were never part of the CL Bill – have now passed federal parliament.

VACC is concerned and disappointed by the deal. Besides the non-contentious elements of the CL Bill that were originally proposed to be split, the amendments that passed also included:

•       ‘Wage Theft’ criminalisation of underpayments, now extended to superannuation

•       Union nominated workplace delegate rights (for employees)

•       ‘Same Job, Same Pay’ labour hire arrangements, including a raft of additional changes

•       A new provision enabling union officials to enter a site on OHS grounds without holding a federal right-of-entry permit.

From an automotive industry perspective, VACC believes the changes already go too far. VACC, through the MTAA, will continue to lobby the Senate crossbench to reject the following remaining aspects of the original CL Bill that will be debated further early next year:

•       Casual employment changes

•       Increased civil penalties for underpayments, including a new ‘serious contravention’ definition

•       Expanded union right-of-entry powers concerning alleged underpayment contraventions.

VACC will continue to emphasise the serious consequences these unjustified changes will probably have on automotive employers and employees – including the lack of any genuine regard for the disproportionate impact they will have on the small businesses that make up 97 per cent of the industry. VACC hopes this will be of particular benefit to those members of the Senate crossbench who claim to represent the best interests of small business, despite voting with the Albanese Government to rush the amendments through.

Contact the Chamber's Workplace Relations team for further information on 03 9829 1123 or ir@vacc.com.au