The Alliance of Industry Associations has strongly welcomed a Coalition commitment to cut red tape by 25 per cent, which it describes as a significant measure to support businesses under the weight of regulation. The Alliance says the policy would provide a tangible boost to economic growth at a time when productivity and living standards are heading sideways.
The Alliance brings together around 30 industry groups representing small, medium and large businesses, from farmers and pharmacists to tradies, retailers, accountants and major employers. It argues that businesses across Australia are struggling under increasingly complex, costly and duplicative regulation.
The Alliance has long called on all governments to commit to a 25 per cent reduction in unnecessary regulatory costs by 2030. It says regulation has an important role in protecting workers and consumers, but that the balance has tipped too far and excessive red tape is driving up costs and hurting businesses.
The Australian Institute of Company Directors (AICD) found that regulatory compliance costs Australian businesses around $160 billion every year, equivalent to almost six per cent of GDP. Reducing that burden by a quarter could deliver savings of around $40 billion annually.
The United Kingdom and the European Union have already committed to reduce regulation by 25 per cent, rising to 35 per cent for small and medium-sized businesses in the EU.
The Alliance also welcomed the Federal Government's commitment to reduce regulatory costs by more than $10 billion annually as an important first step, but said much greater ambition is needed. The Alliance says it stands ready to work with all governments to deliver regulatory reform that boosts investment, creates jobs and improves living standards for all Australians.