Industry association the Business Council of Australia has released a major report into state and territory regulations, red tape, planning and tax, finding South Australia has the most supportive settings for business in the country for the second year running.
The Regulation Rumble 2024 report examined planning systems, payroll taxes, property taxes and charges, retail trading hours, workers compensation premiums and licences to do business for three small business types – cafés, childcare, and clothing, footwear and accessories retailers.
This is the second year the Business Council has undertaken this work, which focuses on assessing the impact of implemented changes to the business environment as of mid-2024.
The report found Victoria had the worst business settings, ranking in at 8th place, and had the most work to do in improving its business fundamentals.
After South Australia, the next best jurisdictions for business were Tasmania, the Australian Capital Territory, and the Northern Territory.
Meanwhile for café operations, Tasmania and Victoria have the highest licensing requirements (37 and 36 respectively), approximately two-thirds more than the Northern Territory (22), which has the lowest.
Business Council CEO Bran Black says the report is designed to help businesses navigate opportunities around Australia, and assist states and territories to understand how to make their jurisdiction more competitive at winning business investment.
“Cumbersome regulation and taxes prevent a business from investing or expanding its operations and that impacts on economic growth and jobs,” he says.
“This report highlights good practice regulations and planning systems across Australia that other states and territories should look to adopt. This is critical to boosting productivity, investment and opportunity for communities across the country. Fundamentally, greater business investment results in improved living standards — that’s the goal.”
South Australia topped the rankings overall for having the best regulatory environment. This was largely driven by it having lower payroll taxes, lower property charges and less voluminous business licensing.
Brian says Victoria needs to address its regulatory environment, which is putting a handbrake on the state’s economy.
“Victoria has some of the least competitive property tax settings, payroll taxes, and business licensing requirements in the country — it fundamentally needs to look at how these are holding back its economy,” he says.
Brian says the ACT and the Northern Territory give retailers the freedom and flexibility to choose when to trade.
“Limitations on trading hours impact customers, reduce earning opportunities for staff, and are an added burden for business,” he says.
Among the three business types assessed, café operations were found to require the most extensive licensing across all jurisdictions, more so than childcare.
