Business Illawarra director Coralie McCarthy is calling on local businesses to help build evidence about the impact of red tape. Photo: Business Illawarra.
Regulatory processes which are costing Illawarra businesses hundreds of thousands of dollars are being exposed as part of a crackdown on red tape, with businessowners urged to submit their experiences to help shape reform.
Local businesses are being brought to their knees by the cost of compliance, with the unnecessary time and money spent on red tape threatening their sustainability, according to Business Illawarra director Coralie McCarthy.
“In an environment of rising interest rates, higher energy prices and increased wages costs, businesses are telling us that government taxes, levies and charges are now among their top concerns,” she said.
“Red tape is a hidden cost. It doesn’t show up on a bill, but it shows up in lost time, delayed decisions and money that could otherwise be reinvested into staff, equipment or growth.”
The problem can extend beyond simple delays or paperwork, with the price point and complexity of the system impacting businessowners’ ability to stay afloat.
“One local professional services firm told us that complying with newly introduced government regulations will cost their business an additional $20,000 every year, purely in administrative and compliance costs,” Coralie said.
“In another case, a business was seriously considering setting up a second company, not to grow or innovate, but simply to navigate the system, because the paperwork and regulatory structure would save them around $300,000 a year. That’s not productivity. That’s red tape madness.”
Now Business Illawarra is calling on its members to submit examples of how these government processes and charges have impacted them as part of a new Red Tape Register.
The register will collect and collate direct input from businesses, be published on the Business Illawarra website and used to advocate to all levels of government to push for achievable reforms within the next 12 months.
“We’re not asking for regulation to disappear,” Coralie said.
“We’re asking for it to make sense. If something takes longer than it should, costs more than it should, or exists simply because ‘that’s how it’s always been done’, then it’s time to challenge it.”
All businesses, regardless of their size, are being urged to contribute their experiences to help build evidence and create change.
“This is about giving business a collective voice,” Coralie said.
“If we want red tape reduced, I need help to show clearly show where it exists, what it’s doing to our economy, and why change is urgent. I encourage businesses to get on board and submit their stories and examples.”
Businesses can submit their examples through a form on the Business Illawarra website.
