The Victorian Government is implementing a comprehensive program to reduce red tape by 25 per cent by 2014, ensuring that Victoria has the most efficient regulatory system in Australia. As it is one of the five largest regulators in Victoria, this has significant implications for WorkSafe and its relationship with employers.

The Process

The Government aims to achieve this 25 per cent reduction by removing unnecessary reporting and compliance obligations imposed by regulators.

As the first stage of the program, Victoria's five largest regulators will be issued 'reducing red tape statements of expectation' (SOEs) by their relevant minister.

WorkSafe will be issued an SOE by 31 March 2013 and WorkSafe will be required to publish the SOE on its website.

The SOE will identify key compliance and administrative processes that impose costs on businesses. It will set out performance targets for WorkSafe such as 'reducing the number of low-risk inspections for compliant business by 15 per cent by July 2014'.

WorkSafe will be required to report on actions being taken to achieve the performance measures specified in reducing red tape SOEs.

The Red Tape Commissioner

John Lloyd has been commenced as Victoria's first Red Tape Commissioner. He will oversee the red tape reduction initiative and report directly to the Treasurer. He has previously been the Australian Building and Construction Commissioner and was most recently engaged as the Director of Work Reform and Productivity at the Institute of Public Affairs.

One of his first jobs will be to consult with the business community to identify a priority list of high impact compliance and administrative regulatory activities.

What this means for Employers

Measures to reduce the regulatory burden on employers, suggested in guidelines for government departments issuing SOEs, include:

  • Spending less time assessing licensing applications for employers with a history of compliance.
  • Taking a more targeted and risk-based approach to inspections. For example, reducing the frequency of inspections for employers with a strong history of compliance in low-risk areas.
  • Improving guidance to employers to help reduce the need for inspections.
  • Removing reporting and notification requirements that impose unnecessary burdens in low-risk areas of operation.

An example of a reduction in red tape given by the Treasurer is reforms to high-risk work licences. People who miss their licence renewal date will be able to re-apply without incurring the significant costs and fees in re-training as a new applicant, if they do so within 12 months of it expiring.

WorkSafe will be required to implement red tape reduction measures over the coming year.

Your input to the process is encouraged

The success of this initiative will depend greatly on the identification of opportunities to cut red tape. Your involvement in the process of providing that information is encouraged.

Norton Rose Australia partner Barry Sherriff is a member of the WorkSafe Stakeholder Reference Group and has ongoing involvement in regulatory reform in various ways. We would appreciate your feedback on opportunities for cutting red tape, so that we can feed that information into the process.

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