The Institute has this week lodged two submissions and is preparing for a third to help relieve the compliance burden on Australian businesses.  
 
The submissions were lodged respectively with two taskforces, which form part of a Government initiative to reduce the regulatory burden on business. The Government Taskforce on Reducing the Regulatory Burden on Business focuses on Commonwealth Government regulation, including overlaps with state and territory regulation, and the Business Regulation Advisory Group (BRAG) is focussed on improving the effectiveness of corporate regulation. 
 
A third submission will be made to the Board of Taxation sometime in the new year and will relate to their review of compliance costs for small business when meeting taxes administered by the Australian Taxation Office.  
 
Institute recommendations 
For some time now, The Institute has voiced its concerns on the growing regulatory burden facing businesses. These concerns include a need for consistent definitions of the basis of federal and state taxes and the removal of unnecessary financial reporting for superannuation trustee companies. 
 
In summary, the Government Taskforce on Reducing the Regulatory Burden on Business submission (142KB) and the BRAG submission (142KB) highlight that:

• The current level of compliance is caused by a number of factors, including inadequate consultation processes not only between Government and its stakeholders, but also between policy makers and regulators within government 
  
• Often regulation is introduced for the wrong reasons, either to attempt to rectify issues the Government may have in the enforcement of existing legislation and also where there is confusion in the delivery of Government objectives 
  
• The definitions for federal and state taxes - including payroll tax, federal excises and duties and state duties - need to be standardised 
  
• There is currently unnecessary duplication for licensed trustees of superannuation funds between their obligations to lodge reports with the Australian Securities and Investment Commission (ASIC) and those required to be lodged with the Australian Prudential Regulation Authority (APRA) 
  
• The thresholds for classifying companies as small needs to be significantly increased to reduce unnecessary financial reporting  
  
• The requirements for small and medium enterprises (SMEs) and non-listed companies to lodge financial statements with ASIC should be reviewed.

• Institute submission (142KB): Government Taskforce on Reducing the Regulatory Burden on Business 
  
• Institute submission (142KB): Business Regulation Advisory Group (BRAG) 
  
• Government Taskforce on Reducing the Regulatory Burden on Business 
  
• Treasurer's media release: Board of Taxation review