Karen McNamara (Dobell, Liberal Party) Share this | Hansard source

Cutting red tape matters. Overregulation hinders productivity, deters investment, stifles innovation and costs jobs. I welcome the opportunity to speak to the Omnibus Repeal Day (Spring 2014) Bill 2014 and two related bills, knowing that this is an important day for Australians and Australian businesses. Today we erase 7,200 pages of regulations from the statute books. This is in addition to our first repeal day where we removed more than 10,000 pieces of legislation and over 50,000 pages of regulations. This year alone the government has announced more than 400 individual reduction measures resulting in exceeding our initial $1 billion compliance saving target and achieving savings of over $2 billion. This is a significant achievement.

By identifying and removing red tape which adds financial burden without delivering benefit we boost our nation's competitiveness to help create jobs and cut the costs of business. We are determined to ensure that interaction with government for individuals and businesses is less complex, less costly and more time efficient. Labor talked big on cutting red tape, with symbolic gestures such as adding 'deregulation' to the title of the Department of Finance. They promised a one-end one-out rule for regulation. History instead shows that, after six years, the former Labor government added 21,000 new regulations. In contrast, in just over 12 months, this government has not only exceeded our target in cutting red tape and compliance costs but also achieved savings of over $2 billion.

We have set about changing the regulation culture within government. This government is taking this task seriously. Our senior ministers have established advisory councils on regulation, and every federal department has created a deregulation unit to calculate the cost of complying with regulations administered by the department and its agencies. Further, regulatory impact statements are required for cabinet submissions, to ensure that the cost of regulation is weighed against its benefits. Deregulation will be a standing item on the COAG agenda, to enable federal and state governments to cut duplication and overregulation.

We are working to improve the quality of consultation between the government and those who will be affected by any new regulations. It is only fair that a robust discussion occurs when government proposes new regulations that adversely impact on how individuals go about their lives or their business. Furthermore, we will also ensure rigorous and mandatory post-implementation reviews to determine the effectiveness of new regulations. If it is determined that regulations no longer effectively meet their purpose repeal will be considered. For individuals and businesses dealing with government departments and agencies, this news is most welcome.

The cost of compliance is a major barrier to growth. The average Australian business deals with eight regulators in a given year. Businesses spend close to four per cent of their total annual expenditure on complying with regulatory requirements and spend approximately 19 hours a week on compliance related activities. This impacts businesses' capacity to grow and drive job creation.

In an electorates such as Dobell small-business operators are the engine room of our economy and they deserve support from government in order to grow. Many of the businesses I have spoken to in Dobell constantly tell me about the burden of compliance. An estimated 447,000 small businesses will benefit from a reduced tax compliance burden, with administrative changes to GST and pay as you go reporting. Businesses with no payable GST will no longer be required to lodge a business activity statement, and this represents compliance savings for small business in the vicinity of $76 million.

One of Dobell's largest growing industries is the aged care sector. Repeal changes will mean aged care providers will no longer be required to notify the Department of Social Services of staff changes unless it materially affects the provider's suitability to provide care. The Department of Social Services has estimated that this will lead to an annual saving of $1.16 million in compliance costs. Such measures are positively contributing to a stronger and more prosperous economy.

Our Industry Innovation and Competitiveness Agenda is promoting lower costs and better skills. Central to this renewed focus is deregulation and reducing red tape, with the guiding principle that if a system, service or product is approved under the trusted international standard, then Australian regulators should not impose additional requirements without a demonstrable reason to do so. The Prime Minister recently advised the House of our success with his approach. The Therapeutic Goods Administration has advised Cochlear, the makers of the bionic ear, that its products are now eligible to use European Union certification. This decision streamline certification will enable Australian consumers to have access to the latest devices, sometimes up to a year earlier than previously anticipated.

Individuals are also benefiting from our deregulation agenda as we minimise and simplify interaction with government. The creation of MyGov has seen more than five million Australians establish accounts to access government services, including the ATO, Medicare, Centrelink, Child Support, Veterans' Affairs and the NDIS. This has seen an annual compliance cost saving of $88 million. MyTax, which is linked with MyGov, will save close to $160 million each year while assisting 1.4 million Australians by pre-populating tax returns.

This government is helping more Australians find and keep a job by reducing the time spent by job service agencies dealing with red tape. This will be achieved by removing the requirement for job service providers to collect extensive evidence about a job seeker who finds work, because this information is ready collected by the Department of Human Services. Similar changes will be extended to Australian Apprenticeship Support Network providers, who will no longer have to maintain over three million paper files. Furthermore, the Department of Employment estimate this will lead to an annual saving of $24.7 million in compliance costs.

For the households of Dobell and throughout Australia we are also introducing common-sense reforms, making dealing with government easier. We are changing the length of registration on the Do Not Call Register to an indefinite period, meeting more than 9.2 million individuals and families will no longer be required to reregister their phone and fax numbers.

Local clubs and organisations registered as a company limited by guarantee, with less than $1 million in revenue, will no longer require an auditor. Our deregulation and red tape reduction goals do not end with today's repeal day. There will be more to come in the future, because their remains so much more to be done. It is important that we continue to talk with individuals, families and businesses to identify where we can further reduce the compliance burden. As I have often said, government does not create jobs, business creates jobs. As such, it is important that the government provides a sufficient regulatory presence without restricting productivity and growth.

I commend the work of the parliamentary secretary, the Hon. Josh Frydenberg, and congratulate him on his commitment on behalf of this government to our deregulation agenda. I commend this bill to the House.

See this speech in context