States ranked for business cred
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The Business Council of Australia (BCA) has declared South Australia the best Australian state for doing business.
SA tops the BCA’s 2024 Regulation Rumble rankings - the second consecutive year the state has led the national comparison of regulatory environments, tax policies, and planning systems.
The report assessed planning systems, payroll and property taxes, retail trading regulations, workers' compensation premiums, and licensing requirements.
Business Council Chief Executive Bran Black says the report is meant as a tool to guide businesses and encourage state reforms.
“Cumbersome regulation and taxes prevent a business from investing or expanding its operations, which impacts economic growth and jobs,” Black said.
“This report highlights good practices other jurisdictions can adopt to boost productivity and community opportunities.”
South Australia's performance is bolstered by lower payroll and property taxes, less restrictive licensing, and efficient planning systems.
Despite progress, the report noted the state’s strict retail trading hours could be further improved.
“Lower taxes and more efficient regulatory settings increase business growth and productivity. South Australia is leading that charge,” Black said.
Victoria was ranked last among the eight states and territories, with uncompetitive property and payroll taxes, along with burdensome licensing systems.
Mr Black described Victoria’s policies as a “handbrake” on the economy, urging a review of its tax and licensing frameworks.
Tasmania, the ACT, and the Northern Territory followed South Australia in the rankings.
The ACT and the Northern Territory were praised for their flexible retail trading hours, which the BCA argues reduce regulatory burdens for businesses and benefit workers and customers.
The report says planning systems are pivotal for economic growth, particularly in addressing Australia’s housing supply issues.
It commended South Australia for the most efficient planning processes but noted reform efforts underway in larger states like New South Wales and Victoria.
“Efficient and consistent planning reduces risks for developers and accelerates new housing projects,” Black said.
The business lobby has been calling for a streamlined housing approval system to meet national housing targets.
The BCA wants a National Reform Fund to incentivise state-level changes, aligning with Treasurer Jim Chalmers’ recent announcement of a National Productivity Fund.
These initiatives aim to support reforms in taxation, licensing, and planning systems, areas the BCA deems critical for lifting national productivity.
The full report is accessible in PDF form, here.
