It’s Christmas Eve, 2023 and in the tradition of many workplaces, a gift swap is going on.
The small business sector has drawn the government and in return the government has small business as its recipient. In an effort to keep costs down, the three tiers of government — federal, state and local — have all pitched in together this year.
The small business sector hands over a beautifully packaged gift. Exceptionally presented, it’s tied in a bow that easily slides away to reveal the generous offering of more than $49bn to the SA economy. The government collective is suitably impressed and has already decided where it will go.
They duly pass over their present. The small business sector isn’t quite sure what to make of it. This gift is heavily bound in red tape and looks like it was put together in a bit of a rush. On first impressions, they feel they will spend more time trying to work through the tape than enjoying what might be inside…
It’s been well reported that Australians are enduring a cost of living crisis. What has been less recognised is that the small business sector, the beating heart of the Australian economy, is in the midst of a cost of doing business crisis.
If it was only the soaring energy costs, insurance premiums, water charges, interest rates, wages and inflation-hit materials to contend with, then at least their lot would be simply mirroring the rest of society. Unfortunately, these challenges are just the baseline.
Increasing regulations, levies, taxes, charges, compliance and reporting are placing an enormous drain on the resources of small business operators. It’s affecting their productivity, their profitability and in some cases, their mental wellbeing.
Too often I hear from business owners that they are having to utilise staff for a day or more a week on matters of regulation and compliance that could best be described as bureaucratic red tape. Their origins may have been well intentioned, but by the time they make their way into the real world, it’s difficult to determine what issue they were trying to address.
When a business owner tells you they can no longer see the value in employing two or three staff and that they are thinking of going solo because life would be simpler and they would be financially better off, it’s a fair indication that our bureaucrats have it all wrong.
The Federal Government’s Industrial Relations reform agenda that commenced last year and saw another Bill passed this week is a glaring example of this. It will add significant costs to businesses, it will stifle productivity, and it will cost jobs.
As the year draws to a close, it’s time once again to remind those in power that for a healthy economy, business needs to be enabled, not constrained.
To our the South Australian Business Chamber members and all businesses across the state, on behalf of the Chamber of Commerce I wish you a roaring festive trading season, and for those able to get away, enjoy a well-deserved break and return refreshed and recharged to do it all over again next year.
