Red tape costing $18 billion and getting worse, says business
Government red tape was costing Queensland business about $18.4 billion a year in compliance, according to a survey by the Chamber of Commerce and Industry Queensland.
Businesses failures were more likely in areas that had younger populations.
In its annual pre-Budget call for cuts to red tape the organisation said the impact on business was worsening.
It found 88 per cent of businesses were experiencing moderate to major impacts in dealing with red tape, a significant rise from the 72 per cent five years ago.
CCIQ policy and advocacy manager Cherie Josephson said businesses said there were too many hurdles and there was a need for relief from complexity and processing times for government permits and fees.
In its Budget submission, CCIQ said that despite the announced action plans, business red tape had become worse. Not only had it become more prevalent, but it had intensified.
Flood safety regulations were consistently cited as a barrier to business growth. Removing the GST and insurance duty on premiums for business was also a key issue.
Josephson said the research had identified a gap in accessing and understanding the information provided to business and an opportunity to simplify processes and avoid unnecessary costs.
The survey found that 45 per cent of businesses were taking more than five hours a week to complete compliance, an increase of 35 per cent since 2017. About 14 per cent said they spent about 20 hours a week on the task.
A majority said compliance had prevented business growth and impacted profits. A third said they had employed people for the specific task of dealing with compliance.
