04 FEBRUARY 2026
As inflation and interest rates continue to rise, Business Illawarra members are warning that government taxes, levies and regulatory burden are becoming a critical threat to business sustainability, with red tape now imposing sixfigure costs on some local businesses.
Business Illawarra is calling on businesses across the region to submit examples of government red tape that are costing them unnecessary time and money, as part of a new Red Tape Register aimed at driving reform over the next 12 months.
Recent discussions with local businesses highlight the scale of the problem.
“One local professional services firm told us that complying with newly introduced government regulations will cost their business an additional $20,000 every year, purely in administrative and compliance costs,” said Coralie McCarthy, Director – Illawarra, Business Illawarra.
“In another case, a business was seriously considering setting up a second company, not to grow or innovate, but simply to navigate the system, because the paperwork and regulatory structure would save them around $300,000 a year. That’s not productivity. That’s red tape madness.”
Business Illawarra believes these examples are not isolated and is concerned that the cumulative regulatory burden is quietly eroding competitiveness, investment and jobs across the region.
“In an environment of rising interest rates, higher energy prices and increased wages costs, businesses are telling us that government taxes, levies and charges are now among their top concerns,” Ms McCarthy said.
“Red tape is a hidden cost. It doesn’t show up on a bill, but it shows up in lost time, delayed decisions and money that could otherwise be reinvested into staff, equipment or growth.”
The Red Tape Register will collect direct input from businesses on:
- What the red tape is – approvals, reporting requirements, duplicatedprocessesor compliance obligations
- The impact on your business – delays, lostproductivityor constrained growth
- What it is costing you – in dollars, staff hours or foregone opportunities
The register will be published on the Business Illawarra website and used to prioritise advocacy with all levels of government, with a focus on achievable reforms within the next 12 months.
“We’re not asking for regulation to disappear,” Ms McCarthy said.
“We’re asking for it to make sense. If something takes longer than it should, costs more than it should, or exists simply because ‘that’s how it’s always been done’, then it’s time to challenge it.”
Business Illawarra is urging all businesses - small, medium and large - to contribute their experiences and help build the evidence base for change.
Businesses can submit their examples via a simple online form at:
www.businessillawarra.com/redtape
“This is about giving business a collective voice,” Ms McCarthy said.
“If we want red tape reduced, I need help to show clearly show where it exists, what it’s doing to our economy, and why change is urgent. I encourage businesses to get on board and submit their stories and examples.”
Media Contact
Coralie McCarthy
Director, Business Illawarra
M: 0417 431 564
E Coralie.McCarthy@businessnsw.com
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About Business Illawarra
Business Illawarra is the region’s peak business organisation; a not-for-profit advocacy group dedicated to the economic development of the Illawarra, Shoalhaven and Southern Highlands. On behalf of our members, we develop policy and are the leading voice representing business across the region.
Business Illawarra is owned and supported by Business NSW, the state's leading advocacy voice for business across NSW. Of the few enduring, independent, not-for-profit organisations in Australia, Business NSW is the only one focused on the wellbeing of the business community. Our purpose has always been to provide a strong advocate to all levels of government on issues affecting businesses, undertake research to guide greater public and private sector investment in economic infrastructure, and support the development of workforce capacity and skills in our region.