The Federal Government has announced a plan to tackle recommendations made in a report by the Taskforce on Reducing the Regulatory Burdens on Business – Rethinking Regulation.

The report makes 178 recommendations on actions to cut red tape.

A statement by the Government said over-regulation is a concern to all businesses, particularly small businesses.

“Effective regulation is also an important tool for delivering Australia’s social and economic goals. We are committed to getting the balance right.”

The report focuses mainly on federal regulation, but the taskforce recognises that all three levels of government contribute to the burden on business and it wants to identify any overlaps.

“The state and territory governments, along with local government, need to follow the lead of the Australian Government and tackle the issue of reducing the regulatory burden on business. A failure to do so will have a negative impact on the Australian economy through its impact on large and small business.”

Treasury will work with the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) to clarify the Government’s expectations of their performance and identify where they can adopt common approaches to cut business compliance costs and be more responsive to stakeholders.

The Productivity Commission will be asked to inquire into the consumer policy framework with a view to promoting greater national consistency and reducing unnecessary regulatory burdens.

Meanwhile, Parliamentary Secretary to the Treasurer Chris Pearce has announced a consultation paper outlining 56 regulatory issues focusing on further refinements to financial services reform, dealing with regulators, company reporting obligations, auditor independence, corporate governance, fund raising, takeovers and collective investments.

It’s not the first time Mr Pearce has tried to fix the Financial Services Reform Act (FSRA). Last May he introduced several refinements that are already having a positive effect on the industry.

“I have put particular emphasis on achieving continued consumer protection, minimised compliance costs, access to capital and enhanced accountability of regulators,” Mr Pearce said.