Five challenges for new Small Business Minister Mark Arbib

Mark Arbib is the third Small Business Minister under Labor since it came to power four years ago, following in the footsteps of Nick Sherry and Craig Emerson.

But the small business role is just one component of Arbib’s workload – he will also serve as Assistant Treasurer, Manager of Government Business in the Senate, and Minister for Sport.

The NSW right-winger was a surprise appointment to the small business position and is leaving behind the portfolios of Social Housing and Homelessness and Indigenous Employment.

Arbib, former convenor of the national right, entered Parliament a few years ago. He is best known for his role in deposing Kevin Rudd for Julia Gillard last year, a coup that delivered the organisers the nickname “faceless men”.

SmartCompany welcomes Arbib to the position and has a few ideas to get the ball rolling for small business:

• Use that influence

“My feeling is he’s considered to be quite an influence in the Labor Party, so the fact the portfolio’s been given to a powerful person is a good thing,” says Peter Strong, executive director of the Council of Small Business of Australia.

• Find the time

Arbib may be talented and ambitious, but his bumper workload – particularly the demands of getting across the Assistant Treasurer role – risks leaving small business as an afterthought.

• Push for small business to get into Cabinet

Yes, it’s unlikely – Cabinet has already been expanded to 22 people. But given the importance of small business to the economy, it deserves a place. As Arbib said after his appointment, “Australia’s more than two million small businesses keep the economy ticking over and keep Australians employed. They are at the heart of Labor’s economic policy.”

• Tax reform

It’s not yet clear who will take over what in the reshuffle, but there are some big reports to come out next year, including the business tax working group and the retail taskforce asked to find financially responsible ways of taxing online purchases valued under $1,000.

These reports come under Arbib’s purview as Assistant Treasurer, and will be relevant for many small businesses. (Arbib’s office says it doesn’t have allocation of responsibilities yet and Ministers will be sworn in tomorrow.)

But beyond this, COSBOA advocates a broadening of the definition of small business in recognition that only a third of small businesses are incorporated.

It’s also calling for small business to be removed from the responsibilities of distributing superannuation and paid parental leave. The latter is supported by the Coalition.

• Capitalise on that sport portfolio

Strong says having one person in charge of small business and sport could boost opportunities for SMEs hoping to capitalise on major sporting events. “Big events like the Commonwealth Games can be a benefit to small business, but they are often locked out because of planning problems or red tape,” Strong says.

For his part, Shadow Small Business Minister Bruce Billson says the newly appointed Small Business Minister should:

• Focus on red-tape reduction.
• Commit to a root-and-branch review of competition policy.
• End the “coordinated attack on legitimate independent contractors and the self-employed.”