Budget 2017 slashes red tape for small businesses to cut costs and free company to focus on growth

BUDGET 2017 is investing $300 million to help state and local government slash regulations that hinder small business growth and competition.

Budget measures to curb red tape since 2013 have saved businesses $5.8 billion.

THE Government is providing $300 million over the next two years to help relieve small companies of the burden of red tape.

The newly created National Partnership on Regulatory Reform will provide an incentive to the States and local authorities to lessen the regulatory burden on small businesses and remove other restrictions that hinder economic growth and competition.

These incentives will help give small businesses more time to focus on growing their operations and creating jobs.

While the areas to be targeted are yet to be discussed with State and local government, treasury said the measure will aim to simplify procedures for small companies and remove duplication.

Since 2013 the government has cut the regulatory burden of red tape by more than $5.8 billion with the introduction of the MyTax system, a depreciation capital allowance tool and allowing ASIC digital disclosure.

“No matter where I have travelled or whom I have med, red tape is top-of-mind for small business,” Small Business Minister Michael McCormack said.

“Partnered with our recently-delivered tax cut for small business and extending the definition of small business to benefit more enterprises, this investment continues the Government’s support for small business to pursue new ideas, invest in themselves and create more jobs,” Small Business Minister Michael McCormack said.

Some State government red tape means it can take a cafe 18 months to set up.

But States and Territories continue to impose a wide range of regulations that restrict small businesses from growing and innovating.

For instance, it can take up to 18 months to set up a cafe because of local council restrictions.

Under the National Partnership on Regulatory Reform, the Government could reward a State for reducing unnecessary land-use planning restrictions on how a small-business owner can fitout their shop.

The initiative will build on the National Competition Policy reforms that helped Australia transform its economy.

The government said small businesses are disproportionately affected by red tape and regulations and so would disproportionately benefit from the removal of unnecessary restrictions.

This News Corp Australia article is published here in partnership with Suncorp

Originally published as Budget 2017 slashes red tape for small businesses to cut costs and free company to focus on growth