While state and federal governments have made attempts to reduce the impact of red tape on small businesses, a recent report has revealed that many are still shackled by regulations.
According to the Australian Chamber of Commerce and Industry’s (ACCI) National Red Tape Survey, close to half of the 700 respondents feel that red tape compliance measures prevent them from making significant changes to ensure growth.
Additionally, the ACCI found that 27 per cent of respondents spent more than 11 hours per week on compliance regulations. Given that this figure is up five per cent on last year, it shows how ineffective changes have been in the past.
CEO of the ACCI, Kate Carnell explained her frustration with the findings.
“These results show there is much scope for national, state/territory and local governments to streamline, simplify or scrap regulations,” she said in a media release.
“Every hour that an entrepreneur spends filling in paperwork is an hour they are not growing their business, satisfying their customers and creating job opportunities.”
Ms Carnell accepts that regulations are part and parcel of many industries, but believes that if those measures mean businesses are losing focus in other areas, it is becoming a major problem.
“The federal government has shown a commitment to abolishing ineffective and burdensome regulation, and this survey shows there is still much work to be done,” she stated.
According to the survey, there were a number of other interesting pieces of information contained within the research.
This includes the fact that over half (55 per cent) of respondents are forced to absorb the cost of compliance themselves rather than pass on to the consumer. Almost half (48 per cent) suggest that these costs are in excess of $10,000 per annum, putting pressure on already fragile finances.
The ACCI also found that record keeping and data tracking were the most expensive compliance activities for businesses to undertake.
What is the solution?
Many businesses are in desperate need of legislative changes either from the federal or state government. However, as laws can take many years to pass, organisations must find new ways to ensure their processes are as smooth as possible.
One way is to invest in products provided by Oncore Services. From online timesheets and payroll to expense processing, we can help your business stay on top of important outputs and make sure your employees are paid on time, every time.