Rightsizing Regulation: Review of Small Business Experiences

The Commission engaged with over 1,000 small business holders, consultations and written submissions. ClubsNSW contributed to the review through a written submission on behalf of the many small clubs across the state, advocating for a reduction in regulatory burdens for small businesses.

The report highlights the benefits of considering the impacts on small business when designing new regulation as well as the importance of ensuring that consultation remains inclusive. It considered a range of regulatory approaches and practices adopted across international jurisdictions such as the UK, Canada, the US and EU. 

What were some the key observations and findings?

The review makes the following observations and findings:

• Just seven per cent of small businesses agreed that regulation was designed around their needs
• Only one in 10 small businesses participated in consultations for a new regulatory policy or proposal
• Small business feels burdened and weighed down by red tape
• More than half of those surveyed stated that compliance had become more difficult over the last 12 months
• Only 13 per cent of businesses agreed that the benefits of regulation outweighed the costs.

What does the Commissioner recommend to assist small clubs across NSW?

The Commissioner’s final report makes nine recommendations to help better understand small business across the state and to support better designed policy development. These recommendations include:

• Small Business Impact Statement: Assess the impacts of regulation on small business and how costs can be removed, reduced or eliminated as part of the policymaking process.
• Better Small Business Consultation: Earlier consultation to genuinely extract insights and perspectives.
• Reduce Red Tape: Provide a clear justification to extend regulatory requirements to small business and consider exemptions or alternate approaches.
• Report stakeholder feedback: Relay back how input informed the decision-making process.
• Mandatory Review of new regulation: A mandatory review within 12 to 18 months if no impact assessment has been carried out or every five years to ensure that new regulations remain fit for purpose.

ClubsNSW supports the findings of the review and calls on the NSW Government to adopt these recommendations as a matter of priority to ensure a simpler operating environment for clubs across the state.  

The report’s findings, survey analysis and recommendations can be found on the Small Business Commissioner’s website here.