New COSBOA research shows workplace relations awareness among small businesses has improved to 48%, but over half still risk missing critical updates.
What’s happening: COSBOA has released year-two research measuring small business workplace relations compliance awareness, showing improvement from 44% to 48% but revealing over half of businesses still miss critical updates.
Why this matters: With intentional wage underpayment now carrying criminal penalties of up to 10 years imprisonment from 1 January 2025, compliance gaps pose serious legal and financial risks for small business operators.
Mixed progress
The Council of Small Business Organisations Australia (COSBOA) is celebrating mixed results as its Small Business PEAK program marks its first anniversary, with new research showing workplace relations awareness has improved but significant gaps remain.
The latest research reveals awareness of workplace relations changes has grown to 48% in 2025, up from 44% in 2024, though this leaves more than half of Australian small businesses potentially unaware of critical regulatory updates.
“Twelve months ago, we launched Small Business PEAK in response to alarming research showing 56% of small businesses were unaware of critical IR changes,” said COSBOA Chair Matthew Addison. “Today, we’re proud to announce our year two research report to measure how Australian businesses are navigating workplace relations changes and where continued support is needed.”
The research shows the strongest awareness growth in Paid Family and Domestic Violence Leave, jumping to 49% in 2025 from 37% in 2024. Awareness of the Right to Disconnect provision has similarly improved from 29% to 45% over the same period.
Criminal penalties live
The timing of the research coincides with significant regulatory changes that have raised the stakes for small business compliance failures.
“With intentional wage underpayment now a criminal offence from 1 January 2025, carrying penalties of up to 10 years imprisonment, it is crucial we understand where small businesses stand on compliance readiness,” Addison said.
The Small Business PEAK program received backing through federal government funding of $60 million over four years in the 2024-2025 federal budget, designed to help business representative groups inform members of regulatory changes.
“The research comes at a critical time, when small businesses face increased regulatory burden, with over 35 significant changes to Australia’s industrial relations environment in recent years that apply to small businesses just as much as to large corporations,” Addison said. “Small business operators, who typically lack dedicated HR departments or legal resources, are struggling to keep pace with the increasingly complex workplace relations landscape.”
Support tools work
The research suggests targeted support programs are making a measurable difference in compliance behaviour among participating businesses.
Early indicators show small businesses engaged with PEAK resources are twice as likely to take proactive compliance steps, including updating employment contracts and reviewing workplace policies.
“Our 24/7 chatbot alone has fielded thousands of queries from busy small business owners, proving just how valuable accessible, jargon-free guidance is,” Addison said.
The program’s first year delivered support through COSBOA Roadshow Workshops, free digital toolkits, an AI-powered industrial relations chatbot offering 24/7 access, customisable Canva tools for compliance materials, practical case studies, and a centralised members’ portal.
Ongoing challenges
Despite the progress, the research identifies persistent knowledge gaps that continue to challenge small business operators.
Top areas of concern remain wage compliance, understanding award obligations, and casual conversion requirements, which together account for over 60% of queries received through the PEAK chatbot system.
The findings show continued strong demand for practical guidance, with 67% of small businesses willing to use compliance toolkits and 55% open to attending webinars or workshops.
“Small businesses remain the engine room of our economy, but they need clear, practical support to keep up with regulatory change,” Addison said. “This next phase of research will ensure Small Business PEAK continues to meet that need effectively.”
Small businesses seeking workplace relations support can access resources at www.smallbusinesspeak.org.au.
Sources & Links
- Small Business PEAK program information: https://smallbusinesspeak.org.au/about-small-business-peak/
- COSBOA organisation details: https://www.cosboa.org.au/
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