Business owners are increasingly concerned about the impact of a shortage of skilled drivers on the viability of their businesses, with concerns growing that the supply of those drivers will drop as a result of the introduction of the new tax.
The new tax, expected to come into effect on July 1, will force busy-day-care operators to provide drivers for up to 10 per cent of their hourly rates.
The new tax will also apply to businesses that offer daycare in the same area of the state.
The changes, expected in 2018, will require all businesses that are part of a busier day care provider to provide a driver.
“Busy day-care is a big, complex and complex industry, and we need to understand that it has a lot to do with the supply chain,” said Tony Foulkes, CEO of the Business Skills Council of Australia (BSCA), which represents business owners.
“It’s also about what we’re doing right and wrong and how we’re providing for the community.”
Mr Foulke said there was an increase in demand for busy days care and a shortage in the workforce in the last few years, which meant some businesses had closed.
Busy days can cost up to $20,000 to operate, while day care providers can earn up to 50 per cent on their operating costs.
This means a business that has a busy daily will struggle to meet its operating costs in the future.
According to the Business and Labor Council, more than 70 per cent are located in metropolitan areas, where many businesses operate more than one facility.
In Sydney, the number of busy times have fallen by around 80 per cent over the past 10 years, from 1.6 million to less than 500,000, according to the BSCA.
But Mr Foulks said the new legislation, which would see businesses pay $20 per hour for a driver, was not a solution for those that were already struggling to meet operating costs and had to turn to temporary staff.
He said businesses in NSW had not had to consider other options to keep operating and said the Government needed to get on with fixing the problem.
“This is a bad outcome for people that have been working in the industry for years, and are now facing the reality of the market, with a very challenging time ahead,” Mr Fouls said.
Mr Fouls noted that there were more than 300,000 people in the business sector, compared to less then 120,000 in 2008.
It was a sign that the Government was committed to getting the job done, he said.
“We need to make sure that the busy services are there to cater to people who need them and who can work hard, so that we don’t lose the very skilled people who are the backbone of our economy,” Mr Trentham said.