Red tape is the one major thing that is holding back an otherwise robust Australian economy, according to a global survey commissioned by the Association of Chartered Certified Accountants (ACCA).
Eighty percent of small businesses have indicated their concern about the number of regulations affecting them, and compliance to these, with 77 percent expressing concern about complexity of regulations and two-thirds about the cost of regulation in proportion to the business. Small businesses with less than 10 staff were particularly mindful of these costs.
The research, conducted by Deakin University, notes that Australia’s complex regulatory environment discourages innovation and deters start-up businesses.
ACCA spokesperson Mike Dixon says the number of Commonwealth and State laws and regulations, as well as recent law changes, indicates a need to streamline red tape: “Business owners want to see improvements to prevent overlaps and inconsistencies in state and federal regulations to reduce the disproportionate impact on SMEs.”
Treasury is currently reviewing the tax system with recommendations to be presented to government late next year. New industrial relations legislation, replacing WorkChoices, has already entered Parliament.
