Australia’s small businesses are suffocating under mountains of red tape. CPA Australia CEO demands “tell us once” reform as small businesses waste resources duplicating government compliance requirements.
Australia’s small businesses are suffocating under mountains of red tape, with the nation’s largest accounting body demanding urgent government action to cut compliance costs and unlock productivity growth.
Speaking at today’s Small Business Roundtable with Minister Dr Anne Aly, CPA Australia CEO Chris Freeland AM outlined a three-pronged attack on the bureaucratic burden strangling Australian SMEs.
“Reducing the regulatory burden, and halting the growth of new red tape, must be the Albanese government’s top priorities to boost small business productivity and growth,” Freeland told the ministerial roundtable.
His stark assessment comes as Australian small businesses consistently underperform their Asia-Pacific competitors across key metrics including growth rates, technology adoption, and export activity.
Tell us once
At the heart of CPA Australia’s reform agenda sits a deceptively simple concept that could revolutionize how small businesses interact with government: report information once, use it everywhere.
“Enabling businesses and individuals to report information once and have it shared across relevant and approved government agencies is not only efficient, but would remove a major compliance headache for many small businesses on the front line of current inefficient processes,” Freeland explained.
The current system forces businesses to duplicate identical information across multiple government departments, creating what CPA Australia describes as unnecessary compliance headaches for already resource-stretched operations.
“Though this would require investment in systems and processes, it would reduce duplication and improve both government and business efficiency,” Freeland said. “It would be a long-term investment in supporting business growth through a reduction in unnecessary red tape and provide evidence of the government’s commitment to make doing business easier.”
The organization is also pushing for an ongoing review process led by an independent National Cabinet Reform Council to systematically remove ineffective regulation.
Singapore shows way
While Australian SMEs struggle with bureaucracy, their regional competitors are racing ahead with government-backed digital transformation programs. Singapore’s success story offers a blueprint for Australian reform.
“CPA Australia’s annual Asia-Pacific Small Business Survey consistently finds that Australian small businesses adopt technology at slower rates than their counterparts across the region, which negatively impacts their performance,” Freeland revealed.
The gap isn’t just about willingness to change. “Many small business owners lack the time, resources and expertise needed to invest in and implement new technologies, including AI, that could help them grow,” he said.
Singapore’s solution combines generous grants for approved technologies with comprehensive training and digital literacy support. “The Singaporean government has provided a perfect case study in how to boost small business growth through digital adoption,” Freeland noted.
CPA Australia research demonstrates a direct correlation between Singapore’s support measures and increased technology adoption among SMEs, with benefits expected to compound over time.
Youth Entrepreneurship Crisis
Perhaps most concerning is Australia’s failure to inspire young entrepreneurs. The demographic gap in business ownership is creating a ripple effect across the entire small business ecosystem.
“Australia has a disproportionately low number of young business owners,” Freeland warned. “This contributes towards the sector’s lower rates of growth, job creation, innovation, technology adoption and export activity compared with other small businesses in the Asia-Pacific region.”
CPA Australia wants government to launch a national campaign promoting business ownership benefits to younger Australians, focusing on key motivators including independence, work-life balance, and pursuing personal passions.
The solution requires targeted investment in business management training addressing common startup challenges. “To address this, the government should invest in business management training, resources and advice targeted at young Australians, focusing on common challenges for those new to business including irregular income, cash flow, business uncertainty, and customer acquisition and retention,” Freeland said.
The potential is already there, waiting to be unlocked. “Many young Aussies will have an entrepreneurial instinct – in some cases from their hobby of online content creation – that should be harnessed and encouraged,” he concluded.
Find out more at cpaaustralia.com.au
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