Lost in Legislation: Why CPA Australia says SMEs Are Struggling to Compete

Australia has sleepwalked into an overly-regulated and excessively bureaucratic nightmare that is damaging business productivity and restricting economic growth. We urgently need to wake up, says CPA Australia.

The next government must prioritise reforms that reduce the regulatory pressure on Australian businesses or risk falling even further behind our global competitors.

This must be the year of improved government efficiency, whichever party forms the next federal government. The global wind has changed – and we need to ride the jet stream.

Gavan Ord, CPA Australia’s Business Investment and International Lead, says the next government needs to prioritise creating a more business-friendly environment through improved policy development.

“The regulatory environment has made Australia a less attractive place to do business,” he said. “A significant contributor to this perception is the increasing volume and complexity of regulation. Individual regulations could be well-designed, but the cumulative regulatory burden can overwhelm businesses, especially SMEs.

“The government needs to abandon its regulate first, ask questions later approach that is creating so much uncertainty, confusion and headaches for businesses trying to focus on growing.

“Bad regulation is the straitjacket holding back the economy. Businesses understand the need for robust regulatory frameworks, but the government should be taking a more deregulation based approach that frees up the time and resources businesses need to focus on their priorities.”

Mr Ord said the government’s release of its first National Small Business Strategy is another missed opportunity to properly engage with business and create a clear and coherent vision for growth.

“Small business operators are looking for a substantive strategy from government – one where they can see clear benefits for themselves and the economy as a whole, but this failed to deliver,” he said.

“The fact that the main takeaway from the National Small Business Strategy is that different levels of government should work more closely together epitomises the problem.

“A massive culture shift is needed from all levels of government – from viewing additional regulation as the default solution to embracing practical approaches such as education and better enforcement of existing laws, at the same time, maintaining the necessary safeguards for businesses and consumers.

“We need governments that foster economic growth, not ones that assume they can regulate the economy into prosperity.”

In its 2025 pre-budget submission, CPA Australia is calling for the government to:

• Increase investment into technology and data to improve digital interactions between business, their advisers and government
• Fund ongoing reviews of existing laws and regulations to identify ineffective or inefficient rules for removal or improvement
• Improve the public consultation process
• Incentivise the development of RegTech solutions
• Strengthen the assessment framework for industry levy proposals

Source: CPA Australia 

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