Figures show the need to cut small business red tape

Small Business Minister, Senator Nick Sherry, said the 7,500 calls show the importance of the government’s efforts to create a new national system for business name registration.

"This bold reform is a key component of COAG’s agenda to deliver a Seamless National Economy, to cut red tape and make it easier to do business," Senator Sherry said.

"At the moment, a business operating in every State and Territory faces a cost of more than $1,000 to register their business name for three years.

"Once in place, the new national system will drastically reduce fees and save businesses time and money.

"Businesses will only have to pay one fee in the order of $70 to register their business name nationally for three years.

"They will also be able to register for Australian Business Numbers in one joint online application.

"Having a multitude of systems is inefficient, costly and wastes the time of small businesses.

"We estimate this COAG initiative will produce benefits in excess of $1.5 billion over eight years to business, government and consumers, most of which will flow to business," Senator Sherry said.

Two complementary new services as part of the same COAG initiative will reduce the time and cost it takes to find, understand and manage compliance obligations. 

"The Australian Business License and Information Service and the Australian Business Account will make interaction with all levels of government easier and more efficient, and they will be up and running this year," Senator Sherry said.

"Similarly, COAG’s new national licensing system aims to remove overlapping and inconsistent regulation between jurisdictions in the area of trades licensing.

"Under this system, a consistent set of eligibility criteria will apply to an occupational licence, which will allow a licensed tradesperson to work anywhere in Australia.

"For tradespeople who work or plan to work in different jurisdictions, it will save them both valuable time and money."

The Small Business Support Line (1800 77 7275) has received more than 24,000 calls since its inception in September 2009.

The top five issues raised by callers are:

• Registration and licenses (33%)
• Government initiatives, grants and assistance (22%)
• Starting a business (15%)
• Legal, accounting and taxation services (8%)
• Business planning and diagnostic service (5%)

"The Small Business Support line is a great resource and can assist small businesses by providing information to help manage their businesses," Senator Sherry said.

"Once the sweeping national reforms are complete, businesses will be better placed to focus on growing and innovation."