The Australian Small Business and Family Enterprise Ombudsman Kate Carnell says childcare is an essential service for women in small businesses, calling for ‘free childcare’ to continue beyond the 30 June expiry date.
“Women make up more than a third of Australia’s small business owners (35 per cent) and more than five million women work in these businesses,” Carnell says.
“The latest ABS labour force data shows women have been hit hardest by the Covid-19 crisis, with the female workforce participation rate falling to 58.4 per cent in April.”
Many of the women who are still working and running their businesses are relying on JobKeeper payments, which will not cover childcare fees if they are reinstated in full from 1 July.
This could force mothers out of their jobs, which is detrimental to working families and even worse for the economy, says Carnell.
“Now is the time for the government to be considering innovative ways to increase participation rates for women to ensure productivity gains and to benefit businesses.”
There are a number of ways for government to do this, including making childcare tax-effective or by phasing in an expanded subsidy scheme as recommended by the Grattan Institute, estimated to deliver an $11 billion boost to the economy.
Economists have often referred to the ‘double dividend’ of childcare increasing workforce participation rates and providing early education.
“Equally, the government needs to look at supporting childcare centres, many of which are small businesses, which have suffered losses due to the structure of the current measures.
“Despite the struggles some of these childcare centres have had with the current package, many are warning of dire consequences for their businesses if there is a sudden snap-back in a month’s time.
“Ultimately the government has a golden opportunity now to completely re-think the childcare system. Small business and the Australian economy depend on it,” concludes Carnell.
Small businesses set for boost with spend local campaign
Australia’s small businesses, the heartbeat of local communities, are set to receive a $5 million helping hand to encourage Australians to back local businesses and keep spending during the current coronavirus pandemic and beyond.
The Morrison Government has committed funding to help keep the lights on for Australian small business with a grassroots campaign designed to encourage all Australians to back local enterprise.
Small and family businesses are the economic engines of the nation’s economy, contributing over a third of Australia’s GDP and employing nearly half of the country’s workforce. Supporting these enterprises through the Covid-19 crisis and beyond is vital to help stem the nation’s economic fallout of the crisis.
The campaign is being delivered by the Council of Small Business Organisations Australia (COSBOA). It aims to highlight to consumers the importance of supporting local small and family businesses and encourage consumer spending locally, with small enterprises first.
“A national campaign dedicated to encouraging support for small business is a welcome initiative and COSBOA are proud to be tasked with galvanising the community,” CEO of COSBOA, Peter Strong, says.
“Small businesses are the lifeblood of our communities, and above all, they’re people―they’re our brothers and sisters, our mums and dads, our friends. We encourage Australians to buy and spend local and get behind small business on the road to recovery.”
In announcing the campaign grant, Minister for Employment, Skills, Small and Family Businesses, Senator the Hon Michaela Cash iterated that small businesses are the backbone of our economy.
“We have over 3.5 million small businesses across the country, making up nearly half the national workforce. They are a vital part of our Covid-19 recovery.”
The campaign will commence in July 2020 and include digital and print advertising, social media and resources for small business.
