The Productivity Commission has published a draft report examining the role of local government regulation on Australian businesses. The report found a number of areas of local government regulation that place ‘unnecessary regulatory burdens’ on Australian businesses.

 

Of most concern to business is the costs they face from local government planning and zoning assessment and building and construction regulation.

 

The Performance Benchmarking of Australian Business Regulation: Role of Local Government as Regulator was commissioned by COAG and examines the country’s local governments’ regulatory activities.

 

The Commission has identified a range of leading practices in the Australian states and the United Kingdom which, if implemented more widely, have the potential to lower the costs imposed on business while maintaining the outcomes sought by local government regulation.

 

Local governments interact with Australian businesses every day. While poor local decision making processes can place unnecessary compliance burdens on businesses, especially small ones, it is clear that the first step in addressing these is for the states and the Northern Territory to ensure the regulatory frameworks they require local governments to administer are fit for purpose,” Commissioner Warren Mundy said

 

“Given the huge diversity of local governments across Australia, it is vital that higher levels of government understand the capacity of local government to deliver the desired regulatory outcomes. Where resources are scarce, local government must be given clear guidance as to how to prioritise their regulatory activities,” Dr Mundy said.

 

The Commission has identified a range of leading practices to which all jurisdictions have contributed. They cover areas such as law making, legislative frameworks and capacity to regulate.

 

The Commission seeks comment on the draft report before finalising its report in July.

 

The full report can be found here