UPDATE: A sweeping plan to cut regulatory red tape is poised to save Australian small businesses over $1 billion annually, according to the Business Council of Australia. The urgent proposal comes as tradies and small business owners like Xavier Duffy of ACT Decks struggle with a maze of compliance requirements, threatening productivity and home building amid an ongoing housing crisis.
Duffy, who operates across three council areas in New South Wales and the ACT, describes the current regulatory system as “a bit of a nightmarish situation.” Each project he undertakes involves navigating confusing approval processes that vary by location, causing significant delays. “If I’m waiting a couple of months to get a deck and pergola through, then people wanting to build a house or do an extension are waiting many more months than that,” he stated.
The Business Council reports that burdensome regulations are stunting growth across various sectors. In Victoria, café owners face the daunting task of applying for 36 separate licenses before they can serve their first coffee. On the Gold Coast, tradies must pay hundreds of dollars for permits just to fix a simple tap across state lines, reflecting the “unnecessary and inefficient regulation” plaguing small businesses.
The Council’s chief executive, Bran Black, emphasized the need for reform, stating, “We have become too complex a country in which to do business, and that’s a massive handbrake on our ability to lift productivity and living standards.” Officials are calling for a 1% reduction in compliance burdens, which they estimate would relieve consumers by $1 billion through lower costs and reduced delays.
As part of the proposed reforms, the Council is urging the federal government to streamline regulations related to anti-discrimination, workers’ compensation, and long-service leave across states and territories. They also advocate for simplifying occupational licenses for skilled workers, enhancing workforce mobility, and reforming Australia’s environmental laws to expedite assessments while ensuring robust environmental protections.
The recommendations will be pivotal in discussions at the upcoming economic roundtable convened by Treasurer Jim Chalmers on July 25, 2023. Experts will gather to explore strategies for boosting productivity, enhancing living standards, and fortifying the national budget.
This urgent call to action highlights the pressing need for regulatory reform as the construction industry braces for a potential surge in demand. With market confidence beginning to return, it is crucial for businesses like Duffy’s to receive the support they need to thrive without the burden of excessive red tape.
As these developments unfold, the implications for the broader economy and everyday Australians could be substantial. Stakeholders are encouraged to stay tuned for updates on the federal government’s response to these critical recommendations.
