Australia’s Small Business Commissioners dish the dirt on red tape, regional challenges and growth opportunities

Australia’s small business landscape is a mixed bag of opportunities and obstacles, according to a recent gathering of the nation’s Small Business Commissioners at the Council of Small Business Organisation Australia’s annual conference.

At a panel hosted by the Australian Small Business and Family Enterprise Ombudsman, Bruce Billson, commissioners and regulators from New South Wales, Victoria, Western Australia, South Australia and Tasmania shared insights on everything from regulatory headaches to regional business advantages.

Confidence on the wane

Catherine Ellis, acting NSW Small Business Commissioner, said confidence among local businesses remains low. July surveys show only 27 per cent of small businesses feel optimistic. Ellis said the usual suspects, such as cash flow, rising costs, staffing shortages and red tape, are keeping business owners on their toes. The commissioner revealed regional NSW also fared slightly worse than metro areas, highlighting the ongoing gap between city and country.

Over in WA, Saj Abdoolakhan, newly appointed commissioner, echoed those challenges, particularly for regional businesses reliant on mining towns and passing trade.

“Small businesses are facing very real pressures, and in regional WA, those pressures are even more pronounced,” he said.

Bright spots in Victoria

Victoria’s Small Business Commissioner, Lynda McAlary, highlighted some positive moves in her state, including collapsing 37 regulators into a maximum of 16, implementing a Small Business Friendly Charter across councils, and digitising approval processes. She said local, place-based initiatives, from council festivals to trader support programs, were helping communities thrive.

Regional realities in South Australia

Dan van Holst Pellekaan, just weeks into his role as South Australia’s Small Business Commissioner, shared his perspective from regional Adelaide, noting both hurdles and hidden advantages. Van Holst Pellekaan said fewer people and skilled workers can make staffing tricky, but owning premises provides flexibility for things like solar panels or 24-hour delivery opportunities.

“It cuts both ways,” he said.

Streamlining in Tasmania

Stuart Clues, Red Tape Reduction Coordinator, Tasmanian Office of the Coordinator-General, is no stranger to regulatory reform. The veteran red tape slasher outlined progress on new legislation to simplify startup permits, and a portal capturing red tape issues across local councils. His focus is on accountability and streamlining approvals so businesses aren’t stuck waiting months for a response.

Queensland’s customer service challenges

Queensland’s Small Business Commissioner, Dominique Lamb, who manages a portal capturing red tape complaints nationwide, said government customer service was consistently the top frustration for small businesses. Yet recent reforms, like streamlined construction industry approvals and digital licensing, are showing that responsive government action can make a real difference.

Rightsizing regulation

A major theme of the panel discussion was “rightsizing” regulation. Hoe to make rules proportionate, simple, and relevant to small businesses rather than just big players. Catherine Ellis explained NSW is rolling out guidance for government colleagues so regulators stop treating everyone the same, and start thinking about principles like proportionality, simplicity, and accessibility.

Co-design and early engagement

The commissioners all stressed the value of co-design: involving small businesses early in the conversation, not after decisions are largely set. Dan Van Holst Pellekaan said, “Industry should be the first part of the conversation… then you might find there’s no need for a risk or even a rule in the first place.”

Cutting red tape in practice

The commissioners delivered examples where cutting red tape was already delivering results. WA has been streamlining approvals for craft breweries, while some councils are experimenting with “business-friendly” programs that co-design approvals across departments to avoid repetitive forms and unnecessary delays.

Empathy, urgency and accountability

While everyone was keen to cut red tape, Clues reminded attendees that extreme regulations often come as a result of tragic accidents, leading to knee-jerk rules that punish entire industries.

Clues suggested that a one-size-fits-all approach rarely works. He said good regulation requires empathy and an understanding of the industry being regulated, as well as accountability.

“If regulators take too long to decide, the approval should stand and let the regulator appeal later,” he said. Clues suggested that long delays can cost small businesses time and money.

Technology as a lever

Digital tools and AI were also front of mind. Lynda McAlary argued that small businesses could harness existing software and AI to save time and improve productivity. She stressed government guidance must be sensible and practical, not buried in 72-page manuals. All the commissioners agreed that technology could both simplify interactions with regulators and give small businesses a competitive edge.

Across the board, one message came through loud and clear: small business owners are resilient, but they need smarter regulations and less red tape.

The path to thriving small businesses lies in a collaborative approach where regulation is proportional, and business owners are consulted along the way.

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