A group of close to 30 organisations that represent small, medium, and large businesses, as well as universities around Australia have put out a call to all Australian governments to slash regulatory costs by 25 per cent to help consumers and businesses.
The call comes following a surge in costs of goods cause by the conflict in the Middle East.
A recent AICD Mandala report showed federal regulatory compliance now costs the Australian economy around $160 billion per year, almost six per cent of GDP.
“In Victoria, a café owner needs 37 separate licenses and approvals before they can pour their first coffee,” says Chief Executive of the Business Council of Australia, Bran Black.
“That kind of red tape adds costs, slows things down, and makes it harder to get goods moving and shelves stocked.
“With global volatility already pushing up prices, cutting that duplication would help bring down costs for Australian households and businesses.”
The group, called The Alliance of Industry Associations, is calling on governments to commit to a 25 per cent reduction in regulatory burden by 2030, starting with immediate steps to reduce costs, undertake an economy-wide regulatory stocktake, and improve coordination across jurisdictions to remove duplication and inconsistency.
It says United Kingdom has implemented reforms to reduce regulatory costs and complexity, while the European Union has adopted a 25 per cent red tape reduction target, rising to 35 per cent for small businesses, as part of broader pro-growth reform agendas.
Rising costs and slimming margins was a key discussion point at the recent Melbourne International Coffee Expo, where industry leaders including ST. ALi’s Lucy Ward, Pablo & Rusty’s Abdullah Ramay, took to the stage to discuss topics such as ‘The coffee value gap’.
