Victoria Lags Behind in Business Friendliness, BCA Report Finds
Victoria has been ranked the worst jurisdiction in Australia for opening a new business, according to the Business Council of Australia's (BCA) annual review of taxes and regulations. The report cites high property taxes, excessive red tape, and burdensome licensing requirements as key factors hindering business growth in the state.
The BCA's findings highlight a stark contrast between Victoria and other states, particularly South Australia, which was crowned the best place to open a business and hire workers. This disparity has sparked debate within the federal government, with some believing Victoria's declining business environment could negatively impact Prime Minister Anthony Albanese's standing.
Victoria's economic struggles are further compounded by its high land tax and stamp duty rates, ranking third and first respectively among all states. Additionally, the state's payroll costs and workers compensation insurance premiums are among the highest in the country.
The report also reveals the significant bureaucratic hurdles faced by aspiring entrepreneurs in Victoria. Cafe operators, for instance, require 36 licenses compared to just 22 in the Northern Territory. Similarly, childcare service operators need 35 approvals in Victoria, while in the NT, only 19 are required.
BCA chief executive Bran Black emphasizes the need for Victoria to address its uncompetitive tax and licensing policies to stimulate economic growth. He commends South Australia's regulatory environment, citing its lower payroll taxes, property charges, and business licensing requirements as key factors contributing to its top ranking.
The BCA's findings serve as a wake-up call for Victoria, urging the state government to prioritize reforms that foster a more business-friendly environment. By streamlining regulations, reducing taxes, and minimizing bureaucratic hurdles, Victoria can attract new businesses, create jobs, and ultimately boost its economic competitiveness.