online survey

Listening to small business about red tape

1 October, 2025

For small business owners, “red tape” typically describes the paperwork, forms, permits, and reporting obligations that must be completed to comply with government regulation. While each requirement usually exists for good reason such as keeping customers safe, protecting the environment, or ensuring fair markets, the way regulation is administered can create unnecessary burden. Businesses consistently tell the NSW Small Business Commission that compliance processes are often duplicative, confusing, or time-consuming, taking them away from running and growing their businesses. 

When compliance systems are overly complex, they can unintentionally limit productivity, innovation, and growth. In short, regulation is necessary, but red tape is not. 

What small businesses are telling us 

Small businesses across NSW report that: 

  • Compliance burdens are one of their biggest barriers to growth. 
  • Even when they understand the importance of regulation, the way obligations are administered can feel like an obstacle rather than support. 

What the Commission is doing 

The Commission has launched a targeted initiative to identify practical improvements in regulatory administration, the small but meaningful changes that can save businesses time and reduce costs without undermining the integrity of regulation. This includes: 

  • Running a state-wide survey during Small Business Month (1–31 October 2025) to capture real-world experiences of red tape. 
  • Conducting interviews and consultations with small businesses, their representative industry bodies, and regulatory agencies to validate findings and uncover practical reforms. 
  • Working with the NSW Business Bureau to ensure insights feed directly into action across government action under the NSW Charter for Small Business. 

Why your voice matters 

By sharing their experiences, small businesses will help government and regulators better understand where red tape exists and how systems can be improved. While not every issue raised can be addressed immediately, the insights gathered will help identify practical reforms, such as reducing unnecessary duplication, simplifying forms, or streamlining approvals. In this way, businesses’ input can guide efforts to reduce compliance burden and make regulation more effective, fair, and accessible over time. 

This work is about partnership between small businesses, government, and industry to find the right balance. Acting Commissioner Catherine Ellis said “Participation in our red tape survey gives you the opportunity to influence meaningful change that can save time and reduce costs … Most importantly, your input will directly shape government reforms.” 

How to participate