Ian Goodenough (Moore, Liberal Party) Share this | Hansard source

Commonwealth regulation is estimated to cost the Australian economy approximately $65 billion annually, equivalent to 4.2 per cent of our national gross domestic product. Whilst a degree of regulation is necessary to ensure the orderly functioning of our society, there are many cases in which overregulation is stifling the economy with bureaucracy and red tape.

The business community has been making the case for years that streamlining our regulatory system is essential for greater productivity and to make the Australian economy more competitive internationally. The Chamber of Commerce and Industry issued a press release on 6 May earlier this year following a series of deregulation announcements in the budget, with the Chief Executive Officer, Deidre Willmott, quoting as stating:

The CCI campaigns against excessive regulation at all levels of Government that stifle new growth.

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Governments at all levels must be vigilant in their fight against red tape and continuously look at ways to cut unnecessary regulation.

Although this is not a high-profile issue, the majority of Australians have a vested interest in this debate, because most Australians are shareholders in large businesses through their superannuation funds or are involved in small business. Unnecessarily high compliance costs serve to reduce the long-term investment returns flowing to members of superannuation funds, resulting in less income in retirement. Therefore, this is an issue which ought to concern the public.

As the Australian economy becomes increasingly connected with international economies through globalisation and free trade, our competitiveness increasingly matters. It is true to say that Australia's economy is more heavily regulated in comparison with those of the emerging economies in our region, putting Australian businesses at a strategic disadvantage. The coalition government realises this and is taking appropriate action to ensure that the Australian economy can be more resilient and compete internationally on a more level playing field.

Accordingly, the Omnibus Repeal Day (Autumn 2015) Bill 2015 is a whole-of-government initiative to amend or repeal legislation across nine portfolios. These measures are simple and non-contentious and are, therefore, more appropriately included in an omnibus bill rather than in separate stand-alone bills. The reforms are wide-ranging, across government departments—including the key portfolios of agriculture, Attorney-General, communications, education, employment, health, human services, immigration and border protection, industry, infrastructure and regional development, social services, and Treasury. Deregulation units have been established in every ministerial portfolio using existing internal resources.

The Amending Acts 1980 to 1989 Repeal Bill 2015—will repeal spent and redundant amending acts that were made between 1980 and 1989. The measures within these acts have taken effect and they do not contain any other substantive provisions. The Statute Law Revision Bill (No. 2) 2015 will repair minor errors in Commonwealth consolidated acts, and repeal spent or redundant acts and provisions within. Allowing spent or redundant acts to remain in force on the Commonwealth's statute books makes it more difficult for businesses, individuals and community organisations to ascertain which regulations apply to them. Instead of being able to quickly and easily find and access the regulations which they need to comply with, they must sort through outdated and unnecessary regulations to determine whether they still apply.

These reforms are designed to repeal some 10,300 legislative instruments and 2,700 acts of parliament. The Commonwealth is working with states and territories to reduce red tape across all levels of government. Many regulatory instruments fall within the area of responsibility of state and local governments, so it is essential that all tiers of government cooperate to reduce red tape. For example, the bureaucracy in the planning approvals process affects many development projects within my electorate, affecting job creation and economic development

To cite an example, there are planning regulations limiting the use of commercial premises which permit real estate agents, accountants, lawyers and financial planners to operate from premises because they are classified as 'office uses' but prohibit psychologists or podiatrists from operating from the same premises because they are deemed as medical practitioners and have arbitrary parking requirements. This has resulted in multiple vacant tenancies, which are not in the community interest. By comparison, in emerging economies this level of unnecessary regulation would not apply.

Small businesses account for 96 per cent of all Australian businesses, employing 4.5 million people and producing $330 billion of Australia's gross domestic product. The following deregulatory measures contained in the current package of reforms will be of benefit to many small businesses in my electorate of Moore, whose collective interests are represented by the Joondalup Business Association and the Wanneroo Business Association. For example, implementing a revised pay-as-you-go system for small businesses will allow certain businesses choosing to use this new method to calculate their actual instalment income on a quarterly basis, resulting in annual compliance savings of $2.7 million. Similarly, reforming the 457 visa program by streamlining the process of sponsorship, nomination and visa applications for skilled workers, reforming sponsorship requirements to reduce the time and cost, increasing the sponsorship approval period from 12 to 18 months for start-up businesses and providing greater flexibility in relation to English language testing and skill requirements is projected to result in annual compliance savings of $29.9 million.

Another measure removes the requirement for heavy-vehicle operators of B-double truck combinations registered under the Federal Interstate Registration Scheme to fit additional spray suppression devices, predicted to achieve annual compliance savings of $8.3 million for the transport industry, in which, as the holder of an MC, or multi-combination, licence, I have an interest. Improvements to the Australian Taxation Office website are expected to assist an estimated six million users to find relevant information more readily, resulting in expected annual compliance savings of $48.5 million. The ATO's myTax initiative reduces the amount of information 1.4 million users need to supply to the ATO when filing their e-tax forms each year, to result in a forecast net red tape reduction of $156 million. The proposed reforms are designed to make identity checks even easier for retailers and consumers when purchasing new prepaid mobile phones, which is expected to save $6.2 million in compliance costs annually. These measures are part of the coalition's mission to build a strong and prosperous economy for a safe and secure Australia. Other changes to the entry thresholds for PAYG instalments and expanded private sector access to the government's Document Verification Service will result in combined net red tape savings of $194.4 million. In addition, the coalition government has introduced a one-stop-shop for environmental approvals, resulting in net red tape savings of $426.3 million.

By contrast, some 21,000 new regulations were introduced by the previous Labor government. Regulation should not become the default option for policymakers. Poorly designed and inefficient regulation imposes unnecessary costs on business. The total deregulatory saving in reduced compliance costs since the election of the Abbott government in September 2013 is estimated at $2.45 billion. Under the former Labor government, Commonwealth regulation was costing Australians approximately $65 billion—equivalent to 4.2 per cent of GDP. As a result of these measures, the $65 billion regulatory cost burden will be reduced by $2.45 billion. To date, the government has implemented $1.57 billion of the $2.45 billion in projected savings, with $880 million in measures yet to be implemented.

In the building and construction industry, the proposed reforms remove the costly and time-consuming requirement for builders to be certified to Australian Standard AS4801 or equivalent prior to applying for scheme accreditation to undertake Commonwealth funded building work where they are in a joint venture with an accredited company and operate under the partner's scheme accredited systems. In the agricultural sector, reforms to biosecurity arrangements provide greater flexibility to manage biosecurity risks. Examples include removing the requirement for tail tags for cattle destined for the European Union and improving access to export terminals for grain exporters. The Japan-Australia Economic Partnership Agreement and Korean free trade agreement will also deliver benefits for Australian farmers and the agricultural sector.

In terms of improving access to government social services, Centrelink claimants will be able to check the status of their claims online, reducing the time wasted in direct follow-up interventions in person at a Centrelink service centre or by telephone. Similarly, students who receive government payments will be able to change their details online without being required to contact a call centre or attend a service centre, which is expected to save $2.7 million in costs. Furthermore, implementing additional functionality for myGov users to allow customers to update their details using the myGov Tell Us Once service to obtain secure and convenient access to online services from a single account and one set of credentials will result in annual compliance savings of $5.4 million.

In the current era of increasing competition brought about by globalisation it is important for the government to implement policies that will help contain the cost structure of business. Research shows that regulation costs Australians approximately $65 billion annually. Everyone bears this cost, as working Australians are shareholders in business through our superannuation funds. As mentioned earlier, high compliance costs translate into lower returns on investment and lower returns for the members of industry superannuation funds. These deregulation reforms are much needed to promote greater productivity, make our exports more competitive and attract investment into Australia. In order to take advantage of the economic opportunities presented by free trade agreements, the government must ensure that our regulatory system is efficient and flexible enough to permit Australian industry to prosper. I commend the package of reforms to the House.

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