National Small Business Strategy to cut red tape

Australia’s small business owners are set to benefit from a new nationally coordinated strategy aimed at reducing red tape, improving support, and giving them a stronger voice in government decision-making.

The Albanese Government has unveiled the country’s first National Small Business Strategy, a long-term plan designed to make it easier for small businesses to operate, innovate, and grow.

With nearly 2.6 million small businesses contributing $590 billion to the economy and employing over 5.4 million Australians, Small Business Minister Julie Collins said the strategy represents a shared commitment from federal, state, and territory governments to work together more effectively.

“Small businesses are the backbone of our economy – they provide jobs, drive innovation, and help shape our communities. We want to make sure they get the support they need to thrive,” Minister Collins said.

Calls for more cohesive approach to regulations

One of the biggest challenges for small business owners has been navigating the different rules, regulations, and support systems across government levels. The new strategy aims to streamline processes, reduce duplication, and ensure small businesses are front and centre in policy decisions.

At its core, the strategy focuses on three key priorities:

Easing pressure on small businesses by cutting red tape, improving access to government services, and supporting businesses to bounce back from challenges like cyber threats and natural disasters.
Supporting business growth by encouraging innovation, improving access to finance, and helping businesses expand into new markets.
Levelling the playing field by making procurement opportunities more accessible, tackling unfair contract terms, and ensuring small businesses aren’t disadvantaged against larger competitors.

“We know small business owners wear many hats – they’re managing staff, keeping up with regulations, and trying to grow their businesses, all while dealing with cost pressures. This strategy is about making their lives easier and creating the right conditions for success,” Collins said.

Franchising sector welcomes strategy

The Franchise Council of Australia (FCA) has thrown its support behind the new strategy, recognising its potential to benefit the thousands of franchise businesses across the country.

FCA CEO Jay Westbury said franchising plays a significant role in Australia’s small-business sector, offering opportunities for Australians to own and operate their own businesses within proven business models.

“The National Small Business Strategy is a welcome step in recognising the critical role of small businesses in Australia’s economy, and franchising is a vital part of this ecosystem,” Westbury said.

“We support efforts to improve coordination across governments to reduce barriers and create an environment where small businesses – including franchises – can continue to innovate and grow.”

The FCA says it looks forward to working with the government to ensure the strategy delivers real, tangible benefits to small businesses and helps them navigate an increasingly complex operating environment.

Red tape and regulations are still an issue

Not all commentators have been supportive of the new strategy.

Gavan Ord, CPA Ausyralia’s Business Investment Lead was vocal in his criticisms, describing the strategy as a missed opportunity.

“Small business operators are looking for a substantive strategy from government – one where they can see clear benefits for themselves and the economy as a whole, but this failed to deliver,” he said.

“The fact that the main takeaway from the National Small Business Strategy is that different levels of government should work more closely together epitomises the problem.

“A massive culture shift is needed from all levels of government – from viewing additional regulation as the default solution to embracing practical approaches such as education and better enforcement of existing laws, at the same time, maintaining the necessary safeguards for businesses and consumers.”

Where to next?

The strategy lays out a framework for ongoing collaboration between different levels of government and small business representatives. Small Business Ministers will meet twice a year to review progress and refine policies to ensure they are delivering meaningful improvements.

“This isn’t just a plan on paper – it’s about real action to support small business owners across Australia. We’ll continue working closely with stakeholders to make sure we’re meeting their needs and keeping small businesses at the heart of our economy,” Collins said.

Small business owners can download the full strategy online at the Treasury website.

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