Regulation and red tape
Reduce the regulatory burden on small businesses resulting from excessive red tape, including across jurisdictional borders
The regulatory burden on Australia’s small businesses is getting worse, putting significant strain on businesses themselves and, ultimately, the economy as a whole. While red tape affects everyone, small businesses are disproportionately impacted, as they often lack the finances and resources to easily meet ever-evolving regulatory requirements. The complexity and costs associated with red tape compliance, particularly as a result of industrial relations law changes, is forcing many small businesses to close their doors, impacting jobs and the broader economy. Government policies need to focus on reducing these burdens by streamlining compliance requirements and providing clear, accessible information to help small businesses navigate a complex and confusing regulatory environment. This will allow small business owners to focus on innovation and growing their business instead of spending time and money on rigorous compliance.
Move to greater alignment of small business definitions broadly across portfolios
There are numerous definitions of what a ‘small business’ is, which is just another layer of complexity small businesses face – before they can determine what regulations and programs are applicable to them, they need to first assess whether they are even considered to be a ‘small business’. Better aligning these definitions will be a positive step to reducing the red tape burden for small businesses. A specific example of where this is needed is the Fair Work Act – streamlining the threshold to 25 employees across the Act will ensure more small businesses benefit from exemptions, allowing them to operate more effectively.
Require Small Business Impact Analyses for all new regulations so that small business needs are prioritised in policymaking
Impacts of various regulatory changes too often fail to accurately consider small businesses, which result in the imposition of unexpected costs to comply with their new obligations. Requiring each policy or piece of legislation to be assessed for consequences specifically on small businesses will help to put small businesses at the forefront of policy development and alleviate these pressures where possible. Requiring impact analyses will prioritise the needs of small businesses and prevent unnecessary burdens.
Create a small business division in the Fair Work Commission to provide faster, tailored support for small businesses navigating industrial relations
Navigating industrial relations laws can overwhelm small business owners, who lack dedicated HR teams and time to. A specialised division would streamline resolution processes and provide practical advice, reducing stress and time away from running their businesses.
Appoint a Minister for Red Tape Reduction to lead a cross-agency taskforce slashing unnecessary regulations that overwhelm small business owners
Small businesses are disproportionately affected by burdensome red tape, as they lack the resources of larger organisations to manage compliance. Creating a Governmental role dedicated to identifying and alleviating superfluous regulations will allow small business owners to redirect their energy toward growth and innovation.
Streamline and fast-track environmental approvals to reduce the compliance burden on small businesses and allow them to focus on growth
Environmental regulations have become overly complex and prescriptive, leading to protracted delays in projects and budget blowouts. Similarly, government agencies are increasingly becoming too heavy-handed in the regulation of projects, further exacerbating delays and costs. These processes should be streamlined and simplified to ensure critical projects aren’t needlessly held up. We also want the Federal Government to work closer with State and Territory Governments to harmonise regulations, removing duplication, and setting a clear, outcome-oriented process. For projects that carry a lower environmental risk, more options should be made available, including self-assessment. Simplifying processes and ensuring that regulations are not overly burdensome will help small businesses contribute to sustainable development without being stifled by red tape.
Make advice from the Fair Work Ombudsman binding, to protect small businesses from costly disputes over award compliance
Small businesses often lack the legal resources and finances that larger companies can access, making it more difficult for them to seek support on potential award disputes. Frequently, they rely on the Fair Work Ombudsman (FWO) to provide this support. To level the playing field for smaller businesses, the FWO needs the authority to provide binding advice to small business owners on modern award matters, acting as a safe harbor where such advice is followed.