The Australian Tax Office (ATO) and local councils continue to bury businesses in mountains of red tape.
Hunter Business Chamber CEO, Kristen Keegan, said today that a state-wide survey, the Red Tape Survey undertaken in November 2011, showed the ATO, local councils, NSW Department of Planning and Infrastructure, Australian Quarantine and Fair Work Australia were regarded as causing most issue for business.
“Over the past two years, six out of ten businesses in NSW have experienced an increase in the cost and time it takes to comply with government red tape. Less than 1% of businesses surveyed said it had decreased.
Disturbingly, more than one in every ten businesses surveyed was spending more than 20 hours a week on red tape and a further one in five was spending between six to ten hours.
“The effect is to reduce business opportunity, reduce employment possibilities and act as a disincentive to new business.
“For all the rhetoric from every level of government about reducing regulatory burdens, the experience of businesses in NSW is one of increasing compliance costs and a mountain of red tape,” Ms Keegan said.
“The ATO demonstrated during the global financial crisis that it could be a supportive and flexible partner with the business community. That support was greatly appreciated by business operators during that tough period but sadly it appears the ATO has reverted to form.
“The message coming out loud and clear from this survey is that while the complexity of regulations themselves creates difficulty for business owners, the problem in a lot of cases is the fundamental operation of the government agency itself“ Ms Keegan said.
Complaints included difficulty speaking to a representative and then getting accurate information, complex and unfriendly websites, inflexibility and unrealistic timeframes.
“Local council regulation and decision-making continues to be a cumbersome nightmare for business. Business wants certainty and timely decision making from local government – even if the answer is no – business owners want to know where they stand,” Ms Keegan said.
Ms Keegan said business welcomed some O’Farrell Government initiatives in red tape reduction having all agencies pay their bills within 30 days or pay penalty interest.
“Business has also welcomed the appointment of NSW’s first Small Business Commissioner, Ms Yasmin King. We believe this appointment can help reduce the red tape burden on business,” Ms Keegan said.