Queensland businesses caught in $15 billion of red tape
A biennial report from Business Chamber Queensland shows businesses are projected to spend more than $15 billion on regulatory compliance in 2025.
The latest Efficient Regulation Report from Business Chamber Queensland surveyed hundreds of businesses across the state to reveal the cumulative financial, time and productivity burden of ‘red tape’.
The report showed that the median cost of compliance per business was now $30,000, with some larger businesses reporting up to $1.25 million in regulatory costs. Both sole traders and large enterprises reported the highest increases since 2021.
It was also revealed that more than 80 percent of businesses said regulatory burden inhibited their growth and productivity prospects.
Business Chamber Queensland CEO Heidi Cooper said red tape prevented businesses from being able to grow, hire or innovate.
“The majority said their business would benefit from increased profitability and workforce productivity, or they would focus on growing their businesses if they weren’t investing so much time and money in regulatory compliance,” Cooper said.
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Business Chamber Queensland has been conducting research on the regulatory burden on businesses since 2009. This report explored the most taxing areas of regulation, including building approvals, employment regulation and environmental requirements.
Heidi Cooper said this has had impacts both the domestic and global market.
“We saw a 21 per cent increase in the cost burden to export, with 52 per cent of businesses reporting high impacts of exporting regulation costs,” Cooper said.
The re-established Productivity Commission and the new Queensland Procurement Policy set to start on January 1 was expected to provide some relief, but there was still much to do, Cooper said.
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“We specifically called for red tape to be among the first priorities for the government and it is pleasing to see this important economic issue on the government’s agenda,” Ms Cooper said.
ACS Engineers co-owners Angela Harlen and Susan Shay have built their business on helping people navigate complex compliance and regulatory conditions, from planning and subdivision to infrastructure, development and agricultural industry legislation compliance.
Harlen said that regulatory burden was restricting growth and development of Queensland businesses at every turn.
“The emotional toll of being caught in red tape is exorbitant and that’s what’s frustrating. There are so many cogs in the wheel and you have to make sure every cog falls into place,” Harlen said.
“There needs to be more flexibility in regulation and for government to take the time to understand how business operates and provide a level of trust that business can and will do the right thing.”
The report found that 74 percent of business said compliance costs have increased since 2023, while 47 percent spend more than six hours weekly on regulatory tasks.
While 82 percent of businesses said regulation inhibits their growth and productivity and one in three businesses now employ staff specifically to to manage compliance.
