Small businesses must be freed from regulations

The past few years have proved a difficult time for the nation’s small businesses. Not only have they had to weather the economic storm of the global financial crisis, but also deal with the challenges posed by excessive regulation.

In light of this, NAB has put together its Deregulation Plan for SMEs, which has been presented to the federal government for consideration. It outlines a number of areas that need to be addressed if the economy is going to be able to thrive and business activity improve.

“It’s only when regulations become overbearing, duplicative and inefficient that business calls for change,” said NAB Group Executive Business Banking Angela Mentis.

“At NAB, we hear these calls form the sector regularly, which is why we are calling for federal, state and local governments to act.”

Among the suggestions being made by the bank is that business activity statements and income tax returns should be automated. This can be achieved through banks working more closely with the Australian Taxation Office, which has the potential to ease the burden on businesses.

Government have also been called upon to bring down compliance costs for small companies and to review the taxes they are subject to. Both areas are adding unnecessary burdens to the sector at a time when they should be receiving additional support.

Further to this, NAB believes the remit and scope of regulators in Australia should be subject to a review to ensure they are meeting the needs of small companies.

Earlier this month, the Roy Morgan Research Business Confidence index pointed to an increase in sentiment among the nation’s firms. In November, the confidence reading marked a 7 per cent increase from the previous month, marking the best result since January.

Companies that are looking to expand their operations should consider implementing HRIS software to assist with the day to day running of their business.