Border-crossing tradies and other small business owners are being hammered by regulatory burdens, but a sweeping plan to slash red tape could save them more than $1 billion a year.
Canberra-based deck builder Xavier Duffy is forced to navigate a confusing labyrinth of approvals every time he takes on a new project.
His business, ACT Decks, operates in three NSW council areas, as well as the ACT, meaning minor differences in rules across jurisdictions can cause his workload to balloon.
“We’re just spending so much time on compliance and submitting this form and that form, it’s a bit of a nightmarish situation,” he told AAP.
“Governments are trying to regulate their way out of poor construction and I don’t think that’s going to solve the issue.
“You’re making everything slower and more difficult.”
For example, a retaining wall in the ACT is exempt from approvals if it is under a metre, but in NSW approval is needed if they are above 600 millimetres, Mr Duffy says.
Unlike NSW, where he can upload all his plans to one portal, the ACT requires his business to send plans to every entity involved, which can stretch the timelines of his projects.
These issues are widespread across the construction industry and threaten to derail home building as Australia buckles under a housing crisis.
“My business is suffering all the symptoms that homebuilders would be facing,” he said.
“If I’m waiting a couple of months to get a deck and pergola through, then people wanting to build a house or do an extension are waiting many more months than that.
“We need to make changes very quickly because with rates starting to come down and confidence building back in the construction industry, we are going to run into a very tough time if everyone starts coming out of the woodwork wanting to build.”
The Business Council of Australia has pointed to this kind of red tape as a handbrake that impacts many sectors across the country.
Cafe owners in Victoria are forced to apply for 36 separate licences and approvals before they can pour their first coffees, the council’s report found.
Tradies on the Gold Coast must pay hundreds of dollars for permits just to fix a tap on the other side of the NSW border because of “unnecessary and inefficient regulation”.
The council is urging the federal government to address regulation, estimating a one per cent reduction in compliance burdens would save consumers $1 billion per year through lower costs and reduced delays.
“We have become too complex a country in which to do business and that’s a massive handbrake on our ability to lift productivity and living standards,” chief executive Bran Black said.
“We need to be working smarter, not harder.”
The council’s report made recommendations aimed at improving regulations and making it easier to invest, employ people and do business.
It urged Australia to harmonise anti-discrimination legislation, workers’ compensation and long-service leave entitlements across the states and territories.
Streamlining occupational licences for workers who need specific accreditations to do their jobs will offer more mobility and allow workforces to more easily migrate to areas of need.
The Business Council also backs calls to reform Australia’s main environment laws to streamline assessment and approvals while also strengthening environmental protections.
Its recommendations could be considered when Treasurer Jim Chalmers convenes his economic roundtable on Tuesday.
During the event, a range of experts are expected to discuss ways to lift living standards by boosting productivity, building resilience and strengthening the budget.
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