CCIQ seeks end to hurdles constraining Qld business getting ahead of the game
Excessive government compliance processes and requirements are costing Queensland businesses $18.4b a year and CCIQ is seeking an end to these restraints in this month’s state budget.
As part of its FY2023 budget submission, the Chamber of Commerce and Industry Queensland is recommending red tape reduction and regulatory reform for businesses that are already struggling from the aftermath of COVID and natural disasters.
CCIQ Policy and Advocacy Manager Cherie Josephson said 9 out of 10 of the state's businesses said there were too many hurdles to doing business and they are calling for relief from complexity and processing times for government permits and fees.
The budget will be tabled on June 21 and Ms Josephson said the changes were vital to ensure Queensland business is ahead of the game.
“As the peak industry body for Queensland business, we have put forward a robust budget submission based on real feedback from our members and businesses across the state,” she said. “We have applied a practical and strategic lens to our recommendations to provide real support for the day-to-day needs of the business community right now, and for the next 10 years, and this includes removing hurdles to doing business.
“The CCIQ’s 2021 Red Tape Survey findings report, which we are releasing today, shows that compliance burdens have increased, and now 88% of Queensland businesses are experiencing moderate or major impacts, a jump from 72% in 2017.”
The report, based on a business survey by CCIQ, estimates excessive government compliance processes and requirements costs business $18.4b a year, or close to $40,000 per business.
Ms Josephson said the research, conducted last year, identified a gap in accessing and understanding the information provided to businesses, but also a significant opportunity for government agencies to simplify processes and avoid unnecessary costs.
“While the Queensland government and the Better Regulation Taskforce announced many different responses and action plans between 2017 and 2021, businesses have reflected that regulatory burden has both intensified and become more prevalent in 2021, compared to four years ago,” Ms Josephson said.
"Now is the time for businesses to be given regulatory burden relief.”
Ms Josephson said Queensland businesses consistently ranked government compliance and regulation as among their most significant constraints on business growth.
“In particular, the cost of insurance has been consistently cited as a significant constraint for business growth so we’re calling for GST and insurance duty on insurance premiums to be removed for businesses,” she said.
Key 2021 Red Tape Report facts:
- Time spent on compliance per week has increased since 2017, with 45% of businesses taking more than five hours to complete their compliance activities (up from 35% in 2017), and 14% having to spend more than 20 hours (up from 11% in 2017).
- In 2021, 77% of Queensland businesses said complying with regulation had prevented their business growth and/or directly impacted their profitability.
- The survey suggested the cost for Queensland business to meet compliance from all levels of government was $18.4 billion per year, or $39,950 per business.
- Major components of the cost relating to red tape were completing the necessary paperwork (28%), complying with the actual requirements (24%), and understanding the obligations (15%).
- 30% of businesses said they need to employ staff to manage their regulatory compliance.
CCIQ’s State Budget FY23 deregulation and regulatory reform recommendations:
- A commitment to reduce complexity and processing times for permits and fees for businesses. For example, Food Safety regulations are consistently cited as a barrier for business growth. This requires more clarity and concrete outcomes to be delivered once the review process is complete.
- Removing GST and insurance duty on insurance premiums for businesses. Cost of insurance has been consistently cited as a significant constraint for business growth.
- Further commitment to reducing red tape for SMEs. Despite the announced action plans, businesses have expressed the growing impacts of red tape on their operations. Between 2017 and 2021, regulatory burden has both intensified and become more prevalent to businesses.
Read CCIQ’s Red Tape Report for further insight.
CCIQ media contact
Emma Clarke
Media and Communications Advisor