Victorian businesses are suffering the highest regulatory burden in the nation under the Allan Labor Government, new analysis has revealed.
The NAB Regulatory Impact Analysis for the Victorian Department of Treasury and Finance, obtained by the Victorian Liberals and Nationals underFreedom of Information, is a business survey conducted by the National Australia Bank and aims to inform regulatory reform priorities. The 2023 survey found:
- Victorian businesses experienced the worst impact of State Government Regulation in the nation, at -49 net balance.
- Victorian businesses experienced the most difficulty in complying with State Government Regulation, at -43 net balance.
- The impact of State Government regulation was most acutely felt in the manufacturing sector (-63), followed by retail (-61), wholesale (-60) and construction (-57).
- 45 per cent of respondents identified compliance requirements as the driver of worsening State Government regulatory impacts.
In addition, the survey found the regulatory impact and compliance costs for Small and Medium Enterprises (SMEs) was the highest in Victoria, at -57 net balance and -47 net balance respectively, and that for this sector, property services was the most negatively impacted industry.
Despite being conducted annually and being taxpayer funded, this survey has not been publicly released by the Labor Government since 2016 and comes as ABS 2022-23 business registration data confirmed Victoria had 7,606 fewer registered businesses, compared to 11,031 more in Queensland and 8,147 more in New South Wales.
Furthermore, this survey comes as the Allan Labor Government fails to implement reforms to reduce Victoria's burdensome business licencing, registration and permits schemes, as Labor's record debt is set to reach $187.8 billion by 2027-28. These stalled reforms are worth over $1 billion to the Victorian economy.
Shadow Minister for Finance, Jess Wilson, said: "This survey confirms that under Labor, Victoria is the red tape capital and the worst place in Australia to run a business.
"Labor's record taxes and burdensome regulatory environment are driving businesses interstate which means fewer jobs and poorer economic opportunities for Victorians.
"Despite this survey, it's been revealed recently that the Labor Government has been sitting on a raft of red tape reductions worth over a $1 billion to the Victorian economy.
"Victoria must urgently slash red tape and transform our economy from the hardest to the easiest place to start, grow and run a business.
"Labor cannot manage money, cannot manage our economy and Victorians are paying the price."
