A South East manufacturers group has slammed Victorian Government “tax grabs” and “red-tape” after a secret survey on regulatory burden was revealed.
The NAB Regulatory Impact Analysis report for the state treasury was obtained under Freedom of Information by the Victorian Coalition.
The 2023 survey found Victorian businesses were hit hardest in the nation by State Government regulation and compliance costs – with manufacturers bearing the brunt.
South East Melbourne Manufacturers Alliance (SEMMA) chief executive Honi Walker said manufacturing – “the engine room of Victoria’s economy” – was hurting.
Higher land and payroll taxes, WorkCover premiums and “over-zealous” reporting requirements were driving manufacturers out of the state, she said.
“The report is damming for the Victorian Government.
“Our state is in unprecedented debt levels and the burden of red tape and increased taxes on manufacturers means they will not invest in capital to grow their businesses.
“They will not be able to employ more skilled people or new apprentices.
“This report tells the truth of what’s happening in the real world – not the one where Treasurer Pallas lives.”
SEMMA represents Melbourne’s South-East manufacturing “heartland“, generating an estimated $54 billion in gross regional product and more than 230,000 jobs.
Walker also took aim at Federal Government “red-tape burdens”, listing the Modern Slavery Act, National Greenhouse and Energy Reporting Act and Workplace Gender Equality Act.
“(These) are supposedly for $100-million-plus businesses (but) are impacting SME’s as they send the unnecessary and burdensome compliance down the line.
“We are calling for a streamlining of these regulatory requirements.
“Reducing red tape will free-up manufacturers to do what they do best – create jobs, underwrite and grow Victoria’s economy.”
A State Government spokesperson said business investment in Victoria was almost 6 per cent higher than the rest of Australia in 2023.
“Deloitte Access Economics predicts that we will lead the nation in economic growth over the next five years.
“We’ve lifted the payroll tax-free threshold for small businesses, we are replacing stamp duty on commercial and industrial properties, and have started abolishing business insurance duty – saving Victorian businesses $900 million over the next four years.
“Our Economic Growth Statement will be released later this year and focus on making sure Victoria remains the best place in Australia to do business.“
Opposition finance spokesperson Jess Wilson said the NAB survey confirmed Victoria was the “red tape capital and the worst place in Australia to run a business”.
“Victoria must urgently slash red tape and transform our economy from the hardest to the easiest place to start, grow and run a business.”
