An internal state government review found Victoria has the second-highest number of business licences and permits in the nation, but the Allan government is yet to deliver an overhaul despite forecasts it could reap up to $1.6 billion in benefits every year. Amid a difficult financial environment, Victoria’s peak business body says reducing red tape is vital to keeping many businesses running in the state.
Industry experts says red tape is still holding back economic activity. Credit: Chris Hopkins Freedom of information documents from February 2023, obtained by the Victorian opposition, show Treasurer Tim Pallas sought advice on how to encourage government departments to reduce the number of business licences in Victoria. Advice from Treasury in the ministerial briefing found that Victoria had the second-highest number of business licences, registrations and other approvals relative to other states.
Feedback from industry in the report also described the current system as “complex, slow and cumbersome” at state and local levels. An overhaul was estimated to benefit businesses and government by between $820 million and $1.6 billion each year.
Loading Pallas accepted a recommendation that Treasury lead the charge on a “centrally co-ordinated” approach to reduce the number of licences across the state. But more than a year later, industry says the system is still holding back growth. The Allan government did not provide a figure on how many licences had been eliminate.