Fewer restrictions and lower taxes are needed if the ACT is to make Canberra “the greatest place in Australia to do business”, the Canberra Business Chamber has advised the local government in its pre-budget submission published today.

“The perception is that it is often harder and more difficult to do business here, and, as a small market, we need to work harder to attract and retain businesses,” the Chamber stated. “Our goal should be to have many more businesses here, both small and large, employing more people, creating vibrancy and ultimately paying tax.”

Canberra’s 35,000 private businesses employ around 164,000 people (62 per cent of all jobs in the ACT); 97 per cent are small businesses, the Chamber notes.

The Chamber asks ACT government ministers, as they plan the 2024–25 Budget, to consider principles and actions that they believe will deliver better outcomes for business, consumers, and the economy.

First, the government should make the ACT more competitive for business, in order to grow and attract new firms.

Although the ACT’s gross state product grew 4.3 per cent last year, and both jobs and the number of businesses in the ACT grew, the Chamber believes business “is not fulfilling its potential, and is being held back by regulatory settings which make it more difficult to do business in the ACT compared to other states”. Diverse regulatory frameworks across states also pose challenges for businesses operating interstate, the Chamber believes.

The Chamber suggests streamlining the ACT’s rules and regulations with those of other jurisdictions. It also proposes halting extensions to portable long service leave; reducing the payroll tax rate (the highest in Australia), and increasing the threshold in line with inflation; reducing the cost of workers’ compensation, increasing the choice of providers, and focusing strictly on work-related harm; refocusing health and safety rules (and Worksafe ACT) on real and serious risk, and rebalancing the relationship between employers and employees; and tax reform, including stamp duty, land tax, and rates, and reducing the impost on consumers and businesses.

Second, the Chamber insists that it should be easier for businesses to deal with the ACT Government. It advocates changing what it considers the ACT public service’s “risk-averse” compliance and process mindset to a “can-do” customer-focused approach, emphasising outcome over compliance processes. It recommends streamlining the procurement process to make it easier for ACT businesses to participate, and promoting transparency in decision-making. The government should commit to providing a meaningful response to all enquiries within a week; and introduce a Net Promoter core to measure customer satisfaction for all dealings with the ACT Government.

Third, the government should deliver the framework, infrastructure, and resources to support growth. This includes financial stewardship: the government should prioritise balancing the budget and restoring the Territory’s credit rating to reduce the cost of borrowing for essential infrastructure projects; clearly distinguish between critical services and non-essential, “nice to have” expenditures; and avoid new taxes or tax increases in the upcoming fiscal year. The government should fund a marketing campaign to attract skilled workers to the ACT. It should invest in infrastructure based on a long-term infrastructure plan that generates a return to the community and the economy; accelerate the new Convention Centre and Stadium, and temporarily expand existing facilities. It should release more land faster, and remove regulatory barriers so the private sector can build more housing.

“The key commitments that we are asking for will deliver tangible benefits for the economy and support our aspiration to be the greatest place in Australia to do business,” the Chamber states.

“Business owners know what they need to be successful. We need to ensure private enterprise can flourish in the ACT by freeing it [from] compliance costs and constraints imposed by government. Most of the commitments that we are asking for require minimal or no investment, and our overarching recommendation is the ACT exercises financial constraint.”

ACT Government response

A spokesperson said the ACT Government would consider the Canberra Business Chamber budget submission through the Budget consultation process. 

“All Budget consultation submissions received are considered through the annual Budget process, noting the Government requires sufficient time to adequately review and consider all submissions, which will sometimes offer conflicting recommendations, in accordance with the delivery of the Budget schedule.”

The Budget consultation process includes:

·         an ongoing community submission process for organisations and industry partners; submissions not identified as confidential will be published on the Budget Consultation website;

·         a survey to seek the community’s feedback on expectations and priorities for government expenditure through a wellbeing focus;

·         providing agencies and Ministers greater opportunity to engage with input and submissions received; and

·          peak body roundtable discussions where community and industry organisations meet Government officials to provide their feedback on suggested spending priorities and areas of need in the community. 

All Budget decisions go through a full Expenditure Review Committee of Cabinet and Cabinet process, and are then publicly released as part of the Budget in June.

“The Government is committed to meeting the Territory’s needs today while investing in the development of the city’s future,” the spokesperson said. “The Government’s annual Budget consultation process serves as an opportunity for the community and organisations to provide views on the development of the Territory’s expenditure and revenue priorities. Individuals, businesses, and community groups are all welcome to submit their ideas that will benefit the wellbeing of Canberrans.”

 Canberrans can take part in the ACT Government’s Budget survey via the YourSay Panel. The 2024-25 ACT Budget Survey will open in the coming weeks for all Panel members.