The Business Council 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 Australia 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.
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 at 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.
Business Council Chief Executive Bran Black said 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," Mr Black said.
"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.
"South Australians have made it clear that they want their state to be destination number one for business, and other jurisdictions need to take note if they want to remain competitive in attracting business investment," Mr Black said.
"We know that lower taxes, and more efficient regulatory settings increase business growth and productivity - South Australia is leading that charge and will see the benefit of increased investment."
Mr Black said 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."
Mr Black highlighted the ACT and the Northern Territory as giving 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."
The report also ranked the planning systems of states and territories. South Australia had the most efficient planning system.
The BCA in its recent Its time to say yes to housing report outlined that easier to navigate planning systems are key to boosting supply and meeting the Housing Accord target of 1.2 million homes over five years.
"Efficient, consistent and certain planning systems reduce risk for developers, helping them to press go on, and complete, new projects," Mr Black said.
"The report backs the need for more significant reform to facilitate faster approvals and more housing supply. It demonstrates that there's still plenty to be done, and that governments are right to take further action."
The BCA believes a National Reford Fund to incentivise states and territories to move on reforms that would be difficult without extra funding from the Federal Government, is essential.
The BCA recently welcomed the Treasurer's announcement of a National Productivity Fund that will provide payments to states and territories to implement reforms that lift productivity.
The BCA believes this fund will aid reform in a number of areas outlined in the Regulation Rumble report.
