Excessive regulations mean that business owners spend more time complying with rules and less time finding ways to grow their enterprise and satisfy their customers.
In the Australian Chamber’s latest National Red Tape Survey, more than one in four respondents said they spent 11 hours a week or more on compliance, with almost one in two putting the annual cost of compliance at beyond $10,000. This leads to lower productivity increased costs and stifled innovation.
Among the biggest headaches for business owners is the paperwork involved in complying with GST obligations, which costs businesses thousands of dollars more in Australia than it does in New Zealand.
Rather than red tape, businesses should encounter blue ribbon service when they deal with government. In recent years the government has set a target of reducing red tape compliance costs by $1 billion each year. This target should continue, with annual reports on progress.
And beyond targeting existing regulation, proposed regulation must be subject to a rigorous regulation impact statement so that the true costs and benefits can be assessed.