Business leaders in Ballarat and regional Victoria are raising concerns about a proposed Local Government Fair Jobs Code, warning that the changes could increase costs, create additional paperwork and place further pressure on small businesses.

The Victorian Regional Chamber Alliance (VRCA), which represents regional business groups including Commerce Ballarat, has called for greater consultation before the proposed code is introduced. The alliance says businesses and councils need more clarity about how the new requirements would operate and what impact they could have on local suppliers and contractors.

VRCA chair and Commerce Ballarat CEO Jodie Gillett said regional businesses were concerned that the proposed framework could add another layer of regulation at a time when many operators were already struggling with rising costs, workforce challenges and economic uncertainty.

The proposed Local Government Fair Jobs Code is designed to improve employment standards and job security in the local government sector. It would introduce additional requirements for councils and organisations involved in council contracts, with a new regulatory body expected to oversee compliance.

However, business representatives argue that the policy needs stronger consultation to ensure it does not unintentionally disadvantage small and medium-sized enterprises. They say local businesses that supply goods and services to councils may face additional certification requirements and administrative obligations when competing for contracts.

The alliance has warned that increased red tape could make it harder for smaller regional businesses to participate in government procurement opportunities. Business groups say regional companies often operate with fewer resources than larger organisations and may struggle to absorb extra compliance costs.

The concerns come as regional businesses continue to report challenging operating conditions. A VRCA business survey found many regional operators were experiencing financial pressure, with concerns around costs, staffing and maintaining long-term viability.

Supporters of the proposed jobs code argue that stronger workplace standards can help improve job security, fair employment practices and conditions for workers. They believe clear requirements can provide consistency across government-funded projects and contracts.

Opponents, including some business groups, argue that any new regulations must be carefully designed to avoid increasing costs or limiting opportunities for smaller businesses. They are calling for detailed consultation with councils, industry groups and local employers before final decisions are made.

The debate highlights a broader challenge facing governments: balancing worker protections with the need to support business growth, particularly in regional communities where small businesses play a major role in local economies.

Ballarat business leaders say they want to work with government on practical solutions but believe any new employment framework should consider the realities faced by regional businesses.

The Victorian Regional Chamber Alliance has urged the government to continue discussions with industry groups to ensure the final policy supports both workers and businesses across regional Victoria.