Businesses say move would 'fuel economic recovery'
This week, the federal government announced that it would introduce reforms and investment that would “streamline unnecessary regulation” and “burdensome red tape,” to support business investment, innovation, and job creation.
Employers and businesses have praised the government’s decision, calling it a “smart approach to deregulation.” In a media release, Australian Chamber of Commerce and Industry’s (ACCI) chief executive Andrew McKellar said that these “practical measures” geared to “reduce the hand breaks on business” would “save time on compliance, reduce costs, and boost efficiency” in the market. It would “[benefit] all Australians,” he said.
When the “unnecessary red tape” is removed, ACCI said that it would be “instrumental” in expanding business operations. “Too often we hear of layer upon layer of regulatory bottlenecks that hold back businesses from realising their potential. The strength of our economic recovery is contingent on removing the regulatory burden on business, particularly for small and medium enterprises,” McKellar added.
ACCI has also attributed the country’s “very low” productivity growth to the “collapse” of business investment over the past decade. “We cannot afford to continue on this trajectory,” McKellar said.
He also emphasised the importance of ensuring businesses are “empowered” down the road to post-pandemic recovery, with higher living standards and increased wages as fundamental goals.
McKellar then went on to explain the federal government’s reforms and their impacts:
“Changes to the calculation of pay-as-you-go (PAYG) instalments from next financial year will benefit more than two million small businesses, enabling employers to invest in productivity enhancing measures and take on new hires.”
“The establishment of an automated system that adjusts tax instalment calculations based on annual financial performance will act as a critical cashflow boost when many businesses are struggling with increased costs.”
“Sharing of single touch payroll data with state and territory governments allowing for pre-filling payroll tax returns and forms, is an important reduction to the costs of regulatory compliance.”
“The administration of trusts is also set to be streamlined with the digitising of income reporting brought up to speed with modern technology and business practices,” he said.
