reducing red tape for business IN South australiafInal

Report

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Message from the Minister/The South Australian Government has slashed red tape and unnecessary regulations in a two-phase program that is now saving business around $320 million every year.

This is a major whole-of-government achievement designed to make South Australia more competitive and attractive to investors.

The original challenge was set in 2006 with a two-year program to reduce the cost of bureaucratic red tape by $150 million. This was surpassed with the outcome independently verified at $168 million.

A second $150 million target was then set by the Government and this was reached within the April 2012 deadline.

This is an excellent outcome and the result of strong direction from the Competitiveness Council which drew on the expertise of leaders from across government and industry to ensure business priorities were addressed.

The Competitiveness Council was wound up on 30 June 2012 having completed this red tape reduction task. But that does not mean a lessening of our focus on red tape reduction.

As a result of these efforts, processes are now in place to consolidate the gains and continue building a culture that avoids a build-up of red tape in the future.

Under recently introduced guidelines, State Government agencies must now consider the regulatory impact of changes to business and the wider community.

Any agency responsible for regulatory proposals that add unnecessary new costs must offset them through other red tape savings of an equivalent value.

The red tape challenge has also been taken up at a national level. It has been agreed by the Council of Australian Governments (COAG) that small business ministers work closely with their state and territory chambers of commerce – in our case, Business SA – to identify any further examples of burdensome regulations that frustrate businesses on a day to day basis.

Achieving our second $150 million target is not the end.

Hon Tom Koutsantonis MP

Minister for Manufacturing, Innovation and Trade Minister for Mineral Resources and Energy Minister for for Small Business

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contents/

Message from the Minister 1

Overview 4

Defining red tape 5

The key categories 5

Target achieved 6

Quote from Peter Byrnes, Partner, EY 6

Savings independently verified 6

Quote from EY report 6

Giving business a winning edge 7

Associated snapshots:

– Procurement made easier 7

– Simplified licence re-application 8

– Easing plumbing compliance 8

– Online declaration of wages 8

– Interim approvals for responsible persons 9

– Industry gains from mortgage reform 10

– Benefits flow from water trading overhaul 10

– Improved licence processes 10

Supporting major projects 11

Cherokee Power Station (testimonial) 11

Support for mining 12

Victorian quote 12

Smooth roll-out for school building program 14

Tagara Group (testimonial) 14

GC & J Constructions (testimonial) 14

Applications made simpler with SmartForms 15

National Regulatory Reforms 16

A Seamless National Economy 16

Associated snapshots:

– Harmonising payroll tax 17

– Product safety 17

– National register for business 17

– Trade measurement 17

Future Reform Agenda 18

Cutting Red Tape in Local Government 19

Planning for Growth 20

Associated snapshots:

– Common seal removal 20

– Wheelie bin replacements 20

– Code boosts residential development 21

A Guide for Better Regulation 22

National best practice principles 23

Reducing Red Tape for the Community 24

sa.gov.au streamlines online business 25

Associated snapshots:

– Simple grant agreements 24

– Greater efficiency for RTOs 26

– Tick for prior learning 26

– Web system for recognising skills 26

Future Directions 27

Associated snapshots:

– Mining boom 27

– Creating a vibrant city 28

Appendix 1 29

Details of savings initiatives

identified and costed by agencies

Appendix 2 38

Competitiveness Council Members

Appendix 3 40

Agency Champions

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Overview/South Australia’s red tape reduction program has been successful on many levels.

Since 2006 government agencies have been involved in a rigorous process of identifying and eliminating cumbersome regulations and processes that can stifle business efficiency.

An economy freed of bureaucratic red tape is overall more competitive. Business is more likely to prosper in a streamlined regulatory environment which is geared to being supportive.

Estimated savings to business flowing from the two-phase red tape reduction program have now reached an impressive $320 million every year, $151.2 million in the most recent phase.

But the benefits of the program go beyond these initial financial savings.

Integral to the South Australian approach has been a requirement for all savings to be quantified and independently verified. This has instilled a discipline within agencies to avoid over regulation – a mindset supported by new guidelines designed to offset future regulatory cost burdens.

For the second phase, the scope of the program was extended to not-for-profit organisations and also employment-related requirements affecting individuals.

Industry consultation has been an integral part of the program from the start. Business leaders also joined government policymakers on the Competitiveness Council,* a sub-committee of the Economic Development Board, to provide leadership for its implementation.

The council worked closely with red tape champions** – senior officers within each agency who were responsible for driving the change. Their role was to identify redundant bureaucratic rules, outdated legislation, and complex and time-consuming paperwork.

As a result of their efforts it is now easier, less costly and quicker for organisations to comply with State Government regulations.

* Council membership details are provided in Appendix 2** A list of agency red tape champions is provided in Appendix 3

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DeFining red tape

South Australia’s red tape program has been led by the Competitiveness Council which defines red tape as:

The key categories

The South Australian Government has included both administrative and compliance costs in its interpretation of red tape. This covers:

Paperwork compliance – costs imposed on organisations through form-filling and providing information.

Non-paperwork compliance – examples include staff training and education, reconfiguring plant and equipment, and costs associated with regulation-induced delays in developing business projects

Financial costs – government fees and charges, including permits and licenses, that are intended to cover the cost of administering and enforcing regulations.

Guidelines were prepared to assist agencies with identifying and calculating red tape savings.

The scope is broad and covers any nonessential Government processes – such as forms, licences and regulations – that take time and money to complete.

Anything that is redundant, cumbersome or confusing – and impacts on the State’s competitiveness and job creation – is being targeted for change.

“The time and money spent by

business to understand and

comply with unnecessary or

overly cumbersome government

regulations, and related

processes, and that are above

and beyond the daily costs of

running a business.”

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To achieve such large-scale cost savings State Government agencies were each given a target based on their scope for reducing red tape.

Because they were net targets it meant that any new regulations failing to meet best practice principles – and which would result in additional unnecessary costs – had to be counted against savings elsewhere in the agency.

Responsibility for reaching the cost reductions fell to government chief executives who were accountable to the Premier.

To ensure agencies remained on track, each had to develop a red tape reduction plan and six-monthly progress reports on implementation and progress. This information was independently checked by Ernst & Young to ensure accuracy and consistency across government.

The reviews also assessed the methodologies and assumptions for calculating cost savings for all initiatives creating annual savings of more than $100,000.

Figures used in this final report are from Phase 2 red tape initiatives assessed by Ernst & Young in its final assessment. Following its final assessment, Ernst & Young reported that the government had achieved net savings of $151.2 million, therefore exceeding its annual target of $150 million in red tape savings by April 2012.

All initiatives with savings to business, the not-for-profit sector, and individuals engaged in economic activity, are included in the total.

Details of each savings initiative identified by agencies and the savings counted by Ernst and Young is included in Appendix 1.

Savings independently veriFied/

“The program is designed to make it easier for business to interact with the South Australian Government and to reduce the regulatory compliance burden for business. This is intended to have the flow-on effect of retaining existing business within the State and of also attracting new business. It also supports the Government’s goal of ‘making South Australia the most competitive business environment in Australia and New Zealand’.”

Ernst & Young Red Tape Reduction Phase Two Review Report 6 – June 2012

“Ernst & Young has provided an independent assessment of the valuations provided by State Government agencies under the second phase of the red tape reduction program. Our assessments confirm that the State Government has succeeded in achieving savings to business and the broader community of $151 million.”

Peter Byrnes, Partner, Advisory Ernst & Young

Target Achieved

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GIVING BUSINESS A WINNING EDGE/South Australian Government agencies have been working closely with business and industry associations to identify rules and regulations which might blunt the State’s competitive edge.

By seeking out the views of key stakeholders and considering every interface between agencies and business, major progress has been made in cutting through red tape.

Outdated legislation is being updated, duplication removed and new measures and technologies introduced to make sure that interaction between government and corporate South Australia is efficient and productive.

The intended outcome of this far-reaching approach is to free up business from unnecessary over regulation and make it more competitive. This in turn will drive growth, boost employment and deliver a strong State economy.

Throughout phase two of the Red Tape Reduction Program new initiatives have been developed to build on reforms delivered in the first phase. Major focus areas of phase two have included:

• Changingprocurementandtenderprocessessothatbiddingfor government work is not an onerous process.

• Makinggreateruseoftechnology,includingtheintroductionof online applications and reporting, and the continued roll-out of a streamlined single-entry website for people seeking government information.

• Reducingdelaysandimplementingfasterapprovalsfor businesses and employees making applications to government.

• Simplifiedlicensing,lowerchargesandlesspaperwork.

Business costs have been further reduced by making regulations easier to comply with, removing unnecessary requirements and working with the Commonwealth and other states and territories to standardise obligations across Australia.

This comprehensive approach has resulted in total annual savings over the two phases of the red tape reduction program of around $320 million.

Snapshot

Procurement made easier

Winning State Government work is now a simpler, less time consuming and less costly exercise for both suppliers and agencies.

The State Procurement Board’s revised procurement guidelines for simple, low value goods and services ensure the effort suppliers put into seeking work with government is commensurate with the nature and value of the procurement.

Under the current guidelines government agencies only require:

• oneverbalquoteforworkcostinglessthan $11,000;

• aminimumofthreewrittenorverbalquotes (depending on the nature of the purchase) for purchases between $11,000 and $110,000.

• aminimumofthreewrittenquotesfor purchases between $110,000 and $220,000.

Savings

Two government departments have submitted estimates which show the reform is saving business millions of dollars every year. They include annual savings of:

• $9.5millionfromtheDepartmentforEducationandChildDevelopmentwhich processes nearly 600,000 orders every year.

• $2.6millionfromtheDepartmentofPlanning, Transport and Infrastructure which processes more than 13,000 orders every year.

TheDepartmentofHealthhasalsoreduced tendering costs for suppliers by use of purchase cards for transactions less than $2,000. The estimated savings are $7.5 million per year.

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Snapshot

Simplified licence re-application

It is now quicker and easier to reapply for an occupational licence that has lapsed.

In the past tradespeople and other workers with a lapsed licence were forced to undertake the full application process again and obtain another police check – a process that could take several weeks.

Under the new streamlined system tradespeople can lodge a much simpler application, without a new police check, provided their licence hasn’t been lapsed for more than 12 months.

Savings

TheAttorneyGeneral’sDepartmentinitiative will allow a quick return to work for about 600 people a year rather than having to wait several weeks for their lapsed application to be processed. Total savings for applicants is estimated at more than $1.8 million a year.

Snapshot

Easing plumbing compliance

Plumbers have less red tape to contend with following a range of new measures to streamline regulations. The changes affect three main areas:

Hotwatertanks–onlyonecertificateof compliance, rather than two, is now required by the plumber when installing hot water tanks.

Building plans – electronic lodgement has been introduced for the submission of building plans for on-property sewerage pipework to avoid the need for plumbers to personally hand in hard copies.

Notice of intention – paperwork for plumbers to work on SA Water infrastructure has been simplified with only one notice now required instead of two.

Savings

The SA Water initiatives will save plumbers an estimated $1.4 million a year.

Snapshot

Online declaration of wages

An updated online facility is saving employers time and money in meeting their end-of-year obligations to WorkCoverSA.

About 85% of employers are now using the facility to calculate and submit figures for the reconciliation and declaration of wages at the end of each financial year. Entering the data online is a far simpler process than the paper-based system with the WorkCoverSA website (www.workcover.com) containing all the necessary information.

Savings

It is estimated that about 15 minutes of administration time is saved by each business using the system, resulting in estimated total annual savings of more than $560,000.

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Snapshot

Interim approvals

A new system of interim approvals has been introduced so people working in the liquor and gaming industry can start work much sooner.

Licensed premises must be personally supervised by a ‘responsible person’ and people in that position must be approved by the licensing authority. Separate approval is required for people wanting to work in the gaming industry.

The introduction of interim approvals means most people can now start work much earlier while their applications are being processed.

Savings

TheAttorneyGeneral’sDepartmentestimates the new system will save applicantsanestimated$9.3million a year in lost wages.

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Snapshot

Benefits flow from water trading overhaul

Irrigators are benefiting from a major overhaul of the water trading system with processing times for applications cut from between 25 and 30 days two to three years ago to eight to 12 days now.

Trades have increased from 1,000 to 5,000 over the same period. Significant savings have been achieved through much simpler application forms, lower fees and faster turnaround times due mainly to the unbundling of water rights.

The ability to trade more actively can have a large impact on producer yield

and help improve cash flow. An independent analysis of the viticulture industry has shown that cutting red tape can reduce economic losses significantly.

Savings

The range of water trading initiatives introducedbytheDepartmentforWateris expected to create industry savings of about $3.8 million a year.

Snapshot

Improved licence processes

Delaysexperiencedbypeopleapplyingfor a contractor’s licence to work in the building or security industries have been reduced by several weeks due to improved financial assessment methods.

A complex method of weighting and calculating the net assets of applicants has been replaced with a simple assessment system appropriate for the different licence type and level of consumer risk. The majority of applicants can now sign a simple self-declaration to prove their financial adequacy to run a business.

Savings

TheAttorneyGeneral’sDepartmentinitiative is saving business an estimated $5.4 million a year.

Snapshot

Industry gains from mortgage reform

Abolishing mortgage duty has benefitted large financial institutions in numerous ways. In the past they were required to supply information on certain mortgage transactions and pay stamp duty to RevenueSA.

By repealing the provisions, financial institutions no longer have to train staff

or seek professional advice to ensure compliance. Costs associated with

maintaining complex systems for reporting have also been removed.

Savings

ThisDepartmentofTreasuryand Finance initiative is achieving annual savings to business of $1.6 million.

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Supporting major projects/

A new system of managing major projects is proving invaluable as South Australia attracts record investment.Government case managers are now appointed as a single point of contact for large-scale developments to streamline the various approval processes.

The Case Management Framework was introduced in the first phase of the red tape reduction program to help developers meet compliance and regulatory requirements.

It makes the process of dealing with different government agencies much easier and means potential issues can be identified and addressed quickly and efficiently.

Case managers are now supporting many of the $109 billion worth of major projects in South Australia that are either underway or in the pipeline.

The departments involved in the system all have key roles in approving and supporting elements of major investment: Primary Industries and Regions South Australia, the Department of Planning, Transport and Infrastructure and the Department for Manufacturing, Innovation, Trade, Resources and Energy.

The framework also provides integrated government support from the Environmental Protection Authority, Renewal SA and the Department of Environment, Water and Natural Resources.

Major regional projects assisted by case managers in 2011-12 include:

• CherokeePowerStation,agasfiredpeakingplantupto1,000MW capacity near Mannum – Tungkillo Power Company.

• DeepSeaIronOrePortforbulkmineralsoffloadingatPortSpencer on the Eyre Peninsula – Centrex Metals Ltd.

• WhyallaRareEarthsProject,a$1billionextractionfacilitynorth of Whyalla –Arafura Resources Ltd.

• PortBonythonBulkCommoditiesPortFacilityincludinga3km jetty and 27km standard gauge railway – Spencer Gulf Port Link Pty Ltd.

• EyrePeninsulaReinforcementProjectinvolving300km of 275kV transmission line and 275kV substation – ElectraNet Pty Limited.

Cherokee Power StationCherokee is a 1,000 MW gas-fired power station being built near Mannum by the Tungkillo Power Company, a wholly-owned subsidiary of Investec Bank. The project is likely to be built in four 250 MW stages.

“The case management process has given us the right people and the right environment to take a piece of earth and create something of value for our investors and South Australia.

“A project like Cherokee is inherently complex and the South Australian Government was fantastic in providing staff to support our planning application and in alerting us to the sorts of issues we needed to address with different Government agencies.

“We’ve had access to all levels of Government which has helped reassure our investors that the risks and key issues are being managed in a way that is appropriate for the investment that they are making.”

Mark Headland Director Commercial Project and Infrastructure Investment Investec Bank (Australia) Limited

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Support for mining/

South Australia’s one-stop-shop case management approach is widely considered the nation’s best system for supporting new mining projects.

An inquiry into greenfields mineral exploration in Victoria received many submissions referring to South Australia as the “model jurisdiction in Australia for effective government facilitation”.

The industry’s peak body, the Association of Mining and Exploration Companies, strongly recommended that Victoria adopt “the best practice South Australian mining project development process”.

The dedicated case management system is currently being used on 30 major mining projects in the pipeline in South Australia involving gold, uranium, copper, iron ore and mineral sands deposits.

These include Arrium’s* complex Hematite Extension Project which aims to export 11 million tonnes a year from mines near Whyalla and south of Coober Pedy, and OZ Minerals’ major copper development planned for Carrapateena, north of Port Augusta.

The approach is underpinned by a ‘minimum risk – minimum time’ philosophy designed to support timely approvals and, critically, the longer-term success of mining projects.

Case managers provide project proponents with one window to government, and work closely with stakeholders inside and outside of government. The aim is to identify and ultimately facilitate the management of key risks and the process of gaining government approvals.

“South Australia was referred to in many submissions as the model jurisdiction in Australia for effective government facilitation of mineral exploration and mining projects. The Committee ultimately found in the course of its investigation that the successful ‘one-stop-shop’ facilitation model used in South Australia (SA) was the most effective for improving the transition of late stage exploration projects into mining operations.”

Economic Development and Infrastructure Committee(Inquiry into greenfields mineral exploration and project development in Victoria, May 2012)

*Formerly Onesteel

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Smooth roll-out for school building program/

Major benefits flowing from the State Government’s red tape reduction program were clearly demonstrated during the Commonwealth’s $16.2 billion Building the Education Revolution (BER).

This was a huge infrastructure investment for the State’s public and private school system and required fast, efficient and rigorous project management.

The Department of Transport, Energy and Infrastructure (now the Department of Planning, Transport and Infrastructure) adopted various red tape initiatives to achieve a streamlined contracting process and smooth roll-out. Highlights of the program included:

• Usingstandardbuildingdesignswherepossibletofast-track approvals and enable builder contractors to personally manage projects.

• ExtensiveuseoftheStateGovernment’sBuildingProjectInformation Management System (BPIMS) for tender applications and for builders to report on progress.

• TelephonesupportforsmallerbuildersnotfamiliarwithIT.

• Ensuringschoolshadhands-oninvolvementincludingdirectcommunication with builders and design teams.

• Contractinglocalbuilderstobenefitregionaleconomies.

• DirectcontractingbyDTEIratherthanusingthird-partyproject managers to avoid another layer of administration.

The extended use of the BPIMS online system significantly reduced paperwork, made it easier for contractors to comply and enabled remote management of projects. Faster reporting also meant builders were paid earlier.

It is estimated that the system saved builders and subcontractors about 100 hours of administrative time.

Overall one-off savings as a result of streamlined procurement processes associated with the BER program is estimated at $9.5 million.

$9.5/million

“The BPIMS platform proved to be an efficient and effective tool to assist in administering the 13 BER projects under our control. Its ease of use and user-friendly interface helped to ensure that it was quickly adopted. We needed minimal time to familiarise ourselves with its functionality, allowing us to focus on our clients and their requirements.”

Enzo Centofanti BER Project Controller Tagara Group

“When the BER projects were being rolled out I thought, ‘Oh no, we’re going to be swamped with paperwork and I wondered how we would get through it all’. Initially itseemedverycomplexbutDTEI’snewonline BPIMS system was very simple and easy to use, and we were extremely pleased with it.”

Paul Brown General Manager GC & J Constructions Gawler-based BER contractor

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Applications made easier with SmartForms/

Applying for permits to construct wells in South Australia is now faster and easier thanks to a new online form developed by the Department for Water.

The SmartForm replaces three paper forms, streamlining the application process and improving customer service.

The Department of Environment, Water and Natural Resources is the first South Australian Government department to introduce interactive SmartForms developed in partnership with the Australian Government.

They use the latest interactive technology to improve the application process and allow payments to be processed online conveniently and quickly.

All necessary details must be completed before the online application can be submitted, which eliminates delays caused by missing or incorrect information.

A four-week industry trial of the new well construction form was carried out before it was introduced, with participants much preferring it over the previous paper-based system. The SmartForm can be accessed through the State Government’s www.sa.gov.au website.

Work is now underway to develop a single online SmartForm to replace a range of other South Australian River Murray water trading forms.

South Australia’s Competitiveness Council has supported the development of the new SmartForms, with funding from the Australian Government’s Department of Industry, Innovation, Science, Research and Tertiary Education. The initiative is part of a national program to help government agencies provide a range of advanced online services.

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A Seamless National Economy/

New initiatives are being rolled out nationally to make it easier for businesses to operate across different state and territory boundaries.

NATIONAL REGULATORY REFORMS/

South Australia is taking an active role in a broad ranging agenda that spans 27 deregulation priorities, eight priority areas for competition reform and ongoing reforms of regulatory processes.

The plan for a Seamless National Economy is being overseen by the Council of Australian Governments (COAG) Business Regulation and Competition Working Group and involves close collaboration between the South Australian Premier and other Commonwealth, state and territory leaders.

Their aim is to remove overlapping rules and regulations which add unnecessary complexity to the challenges of doing business in different jurisdictions.

Seventeen of the 27 regulatory reforms are now operational. These include changes to wine labelling, payroll tax harmonisation, a national system for trade measurement, a single national consumer law and a national system for business names registration.

Most of the reforms still outstanding under the Seamless National Economy are due to be completed by the end of 2012 although a few (e.g. National Occupational Licensing) have milestones that fall in 2013.

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Snapshot

Harmonising payroll tax

South Australia has adopted standardised legislation and administrative procedures to support businesses that pay wages in more than one jurisdiction.

Consistent legislation has been introduced in most states and territories and includes standard provisions supported by common revenue rulings, exemptions, liability and grouping provisions.

Savings

The removal of this regulatory burden bytheDepartmentofTreasuryandFinance has created annual savings to business of $2.7 million.

Snapshot

Product safety

Product safety regulation has been streamlined for business and consumers with the introduction of a single system across Australia.

In the past product safety was controlled by different states, territories and the Commonwealth and each had different laws.

Under a new national system, incidents need only be reported to one agency, the Australian Competition & Consumer Commission, which is also responsible for determining if a product should be permanently banned.

Savings

The reduction in duplication and complying with just one system is saving industry in South Australia about $504,000 every year.

Snapshot

National register for business

Registering a business name across Australia is now much simpler – and cheaper – following the introduction of a national business names registration service.

The new service replaces existing state and territory systems and is managed by a single authority – the Australian Securities and Investments Commission.

More than 1.5 million business names are registered across Australia and under state-based systems there were about 250,000 new registrations every year.

Savings

To register a business name for three years in South Australia previously cost $159ormorethan$1,000foreverystateand territory. The new Australia-wide fee is about $70 for the same period. Once time savings are factored in, the Attorney General’sDepartmentestimatesanoverall cost reduction to South Australian business of $3.6 million a year.

Snapshot

Trade measurement

The regulation of trade measurement within Australia has moved from separate state and territory agencies to a central national body.

Under the changes the same laws now apply across Australia. Trade measurement involves the legal and technical standards for the size and dimensions of about $400 billion worth of goods each year in Australia.

Savings

Establishment of the National Measurement Institute is saving South Australian businesses about $488,000 in fees every year. Additional administrative savings are being made by companies that operate in several states.

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Future reform agenda/

Measures to help business improve productivity is a key focus of COAG’s next ambitious reform package being developed during 2012. The South Australian Premier is playing an active role in driving the new agenda and the need for a clear focus on a few high priority areas. All reform proposals will be subjected to rigorous cost benefit analysis before final decisions are made.

An inaugural meeting of COAG’s Business Advisory Forum in April 2012 agreed that lowering costs for business and improving competition and productivity should be a major focus. Six priority areas have been identified to achieve this:

• Addressingduplicatedandcumbersomeenvironmentregulation.

• Streamliningtheprocessforapprovalsofmajorprojects.

• Rationalisingcarbonreductionandenergyefficiencyschemes.

• Deliveringenergymarketreformstoreduceprices.

• Improvingassessmentprocessesforlow-risk,low-impactdevelopments.

• Best-practiceapproachestoliftregulatoryperformance.

COAG also recognises that small to medium enterprises are particularly vulnerable to the build-up of unnecessary regulation that frustrates business on a daily basis.

The task of identifying these burdensome regulations will be overseen by the Commonwealth Minister for Small Business together with relevant state and territory ministers.

They will work closely with the Small Business Advisory Committee, the Council of Small Business of Australia and state and territory chambers of commerce, including Business SA in South Australia.

Reducing the various reporting burdens imposed on business is another priority especially where there is an overlap involving the Commonwealth, state and territory authorities. Ways to remove duplication and increase the use of online reporting will be explored.

A special cross-jurisdictional taskforce has been established to develop policies and a timetable for the new reform agenda. It is chaired by the Secretary of the Commonwealth Department of Finance and Deregulation and includes senior treasury officers and first minister representatives from the various governments.

An initial focus of the taskforce will be to provide advice to COAG on:

• ThedetailofthespecificreformsoutlinedattheBusinessAdvisory Forum.

• Thelikelycostsandbenefitsofthereforms.Thiswilldrawon high-level advice from the Productivity Commission and an assessment against COAG’s reform principles.

• Themainsensitivities,stakeholderviews,implementationpathways and challenges facing the reform process.

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Local government takes a lead/South Australia is heading the nation in reducing the impact of local government red tape on business.

A small group of councils have been working on a pilot program with State Government since 2009 to identify and resolve issues involving the delivery of business services.

Recent research by the Productivity Commission* shows that South Australia is already seen by business as leading the way.

Performance benchmarking on whether local government regulation has a positive impact on business places South Australia and Victoria ahead of other states.

More businesses also opted for South Australia, together with Tasmania, on the likelihood of being satisfied with recent regulatory dealings with local government.

Among the projects already completed in the local government pilot are:

• ElectronicmanagementofdevelopmentapplicationsintheCity of Charles Sturt.

• AnimprovedwheeliebinreplacementsysteminAdelaideCity Council.

Local councils are aware that further work needs to be done with some businesses still concerned about the impact of local government regulation.

A recent Business SA survey found that regulations having the most impact are in the areas of planning and land use, building and construction, and infrastructure and roads.

The Local Government Association is working with local councils on identifying further opportunities for red tape reduction in the planning and development system, with a particular emphasis on efficiencies through e-solutions and the removal of the need for the common seal on planning documents.

*Performance Benchmarking of Australian Business Regulation: the Role of Local Government as Regulator, Productivity Commission, Research Report July 2012.

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Planning for growth/

A major overhaul of the planning and development laws in central Adelaide is another key outcome of the red tape program involving local government.

The State Government and City of Adelaide have agreed on sweeping reforms to attract investment and encourage more people and business into the city.

Raising the height restrictions on development – which was previously cited by developers as a major barrier to investing in the city – is among the most significant changes.

The reform has had an immediate impact with the Department of Planning, Transport and Infrastructure (DPTI) receiving pre-application enquiries for new commercial buildings with an estimated investment totalling $500 million. This represents a backlog of projects which were not viable under previous development rules.

Another major change involves the introduction of case management by the Development Assessment Commission (DAC) for pre-lodgement of developments valued above $10 million.

This will result in a streamlined approval pathway with referrals case managed through the project development stage. Adelaide City Council is a referral agency under the new system.

A Design Review Panel, comprising a pool of national and state-based experts, is also being established to guide design during the development stage.

The new integrated system will give developers greater certainty and will also speed up the approval process with DAC turning around decisions within 10 days in most cases.

Key beneFits/The new planning reforms will deliver:

• Acontemporarycapitalcityplanningsystem

• Reducedcomplexitywithfewerzonesandprescriptiverules

• Fasterdecisionswithin10daysfromlodgement

• Progressivecertaintythroughcasemanagement

• Goodqualityoutcomeswithdesignbuiltintothe statutory system

• Incentiveforinvestmentinthecitythroughcatalystsites.

Snapshot

Wheelie bin replacements

In the past residents and small businesses could wait up to four weeks for Adelaide City Council to replace a missing wheelie bin.

The waiting period has been significantly reduced after the council removed the need for a statutory declaration confirming the bin was lost or stolen. Now requests from standard residential properties and small commercial properties are forwarded direct to the wheelie bin contractor after an initial assessment by the council.

The contractor delivers a replacement bin within 24 hours of receiving a council request.

Savings

The new streamlined system is saving business, residents and the council an estimated $61,600 a year.

Snapshot

Common seal removal

Red tape is being unravelled on some planning and related applications under reforms designed to speed up approvals for developers.

Documentsinvolvingadministrativeprocedures such as registration of variations and rescission of land management agreements have traditionally needed the council’s official common seal.

Use of the seal requires the full council to formally approve the documents – which can take several weeks – even though it’s often a case of rubber stamping the application.

Over the past two years local government has been working with the Lands Titles Office to progressively remove the instances where the common seal is required.

Other documentation being reviewed under the Real Property Act include the discharge of encumbrances, the extinguishment or variation of easements and rights of way.

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Snapshot

Code boosts residential development

Developersarefindingitmucheasierto embark on major residential projects under a new code which has removed unnecessary red tape.

TheResidentialDevelopmentCodeaimsto support growth, particularly for higher value projects, and has substantially increased the range of ‘as-of-right’ development in areas zoned for housing.

The code came into operation in March 2009andisbeingfurtherrefinedwith22changes based on feedback from industry and local government.

Duetotakeeffectfrom1August2012,the latest changes will relax design and information requirements which are considered excessive, with some removed altogether.

They will make it easier for applicants and industry to lodge an application and easier for local councils to process.

TheDepartmentofPlanning,Transportand Infrastructure has also been collaborating with the Local Government Association on other measures including:

• ane-planningportal

• ahelp-deskforindustryandlocalcouncils

• acode-specificapplicationform and checklist

• guidancematerialforcouncils and planners.

Savings

Existing measures under the new code are already saving developers an estimated $34.7 million every year.

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A guide for better regulation/

Removing red tape is just one part of the State Government regulatory reform program.Measures are also being taken to ensure new rules and regulations do not become a future burden on business and the broader community.

Under new guidelines introduced in June 2011 government agencies must consider the impact of any regulatory changes.

To support this initiative, a Better Regulation Handbook has been published to help agencies design and review regulation, and also prepare a Regulatory Impact Statement (RIS).

The handbook is based on the Council of Australian Governments (COAG) Best Practice Regulation Principles (see page right) and aims to ensure all agencies are geared to delivering regulation that is efficient and supports well-functioning local, national and international markets.

Another key objective is to make regulatory management a mainstream function that is integral to the policy development process.

Stakeholders must be consulted by agencies and their views taken into account if a regulatory proposal is likely to have a significant impact on business, the community or the environment.

Any submission to Cabinet involving new or amended regulations must also be accompanied by a Regulatory Impact Statement (RIS) unless the likely impact is nil or minor, or if the proposal fits certain exempt categories.

Before it reaches Cabinet each draft RIS has to be assessed by other key government agencies. The Department for Manufacturing, Innovation, Trade, Resources and Energy provides advice on any business impacts, while the Department of Treasury and Finance scrutinises the cost benefit analysis. Impacts on the environment and families are also considered.

The Department of the Premier and Cabinet (Cabinet Office) looks at the overall adequacy of the RIS and gives final sign-off before submissions go to Cabinet.

Once a regulatory decision has been announced the RIS is published on the Department of The Premier and Cabinet website.

This requirement came into force in December 2011 to enhance transparency and accountability. It also helps promote sound analysis and public scrutiny to support informed decision-making.

The bottom line is that all proposals must demonstrate that the benefits outweigh the costs.

23

A cornerstone of the

Government’s commitment to

good regulation is the eight

Best Practice Regulation

Principles. These were agreed

by COAG in 2007 and are

followed in the development

of all regulatory proposals.

1. Establishing a case for action before addressing a problem.

2. A range of feasible policy options must be considered, including self-regulatory, co-regulatory and non-regulatory approaches, and their benefits and costs assessed.

3. Adopting the option that generates the greatest net benefit for the community.

National best practice principles/

4. In accordance with the Competition Principles Agreement, legislation should not restrict competition unless it can be demonstrated that:

a. The benefits of the restrictions to the community as a whole outweigh the costs.

b. The objectives of the regulation can only be achieved by restricting competition.

5. Providing effective guidance to relevant regulators and regulated parties in order to ensure that the policy intent and expected compliance requirements of the regulation are clear.

6. Ensuring that regulation remains relevant and effective over time.

7. Consulting effectively with affected key stakeholders at all stages of the regulatory cycle.

8. Government action should be effective and proportional to the issue being addressed.

24

Reducing red tape in the community/

The not-for-profit sector has been an important focus of the second phase of the South Australian Government’s red tape reduction program.Apart from providing a crucial service in the community, not-for-profit organisations (NFPs) are an important and rapidly growing part of the national economy.

While they are not allowed to make a profit, NFPs can still be affected by government red tape. In many areas the regulatory framework has not kept pace with sector growth.

Burdensome regulations hinder service delivery and this limits the sector’s capacity to help people in need.

Each year the State Government distributes between $800 million and $1.1 billion to the sector to act as a community advocate and to deliver a range of social, health, environmental and community services.

But grants from the various State and Commonwealth government agencies all involve different application and reporting processes. Dealing with all the paperwork can be a major detraction from service delivery.

The South Australian Government is working to reduce the burden at two levels – nationally and within its own administration.

The issue is being tackled at a national level by a new working group which is pursuing NFP regulatory reform options. The group picks up on work previously undertaken by the COAG Business Regulation and Competition Working Group.

Two major initiatives have been rolled out as a result of the Commonwealth and State Government efforts – a Standard Chart of Accounts agreed by COAG and Standardised Grant Agreements across State Government.

Snapshot

Simple grant agreements

Community organisations and business now have to contend with far less red tape when applying for grants below $100,000.

The Crown Solicitor’s Office has developed a Standardised Grant Agreement in consultation with other agencies for use where such grants are considered low risk. Organisations applying for funding are finding:

• Theapprovalprocessisquicker.

• Documentsaresimple,fairandeasierto understand.

• Theydonotneedtoobtainlegaladviceon the documents.

• Requirementsandobligationsare less complex.

• Reportingissimpler.

The standardised agreement is being rolled out to relevant agencies, including the Office of Recreation and Sport, theDepartmentofFurtherEducation,Employment, Science and Technology, the DepartmentofCommunitiesandSocialInclusion,theDepartmentforHealthandAgeing,theDepartmentofEnvironment,Water and Natural Resources, the DepartmentforManufacturing,Innovation, Trade, Resources and Energy and Arts SA.

25

sa.gov.au streamlines online business/

Accessing government services is now easier and faster following the addition of numerous online tools and new topics to the state’s whole-of-government website.

sa.gov.au is growing daily as content from various government agencies is reworked and new services added to provide a single entry point for business and community users.

It is now the most-visited South Australian Government website, saving people the trouble of locating information and online services from multiple government sites. Many of these will eventually be closed.

Jargon has been stripped from the rewritten content which is easy to find under key subjects such as business, social services and transport.

Over the past year a range of topics has been added including education, skills and learning; energy and climate change; heavy vehicles; emergency response; and planning and development.

New elements have also been incorporated to make it easier for people to interact with government and access services. These include:

• Propertysearches

• Homeenergyaudits

• Electronicplanlodgement

• Surveyplansearchandretrieval

• Obtainingbusinesslicences

• Findinggovernmentschoolsandservices.

Vehicle registration and licensing transactions have also been added and since the abolition of registration stickers fromJulylastyearanewEzyRegonlinefacilityhasbeendeveloped for owners to quickly check the registration status of their vehicles.

Alternatively,driverscandoasearchbydownloadingEzyReg’saward-winning smartphone app – an innovation which has been applauded by business and community users and also other state governments.

The eGovernment Directorate, which is responsible for sa.gov.au and related initiatives, was recognised through a 2011 FutureGov award for Public Sector Organisation of the Year, Oceania.

Work has now commenced on procuring a new content management system for the site that will further extend its capabilities for the future.

26

Snapshot

Greater efficiency for RTOs

TheDepartmentofFurtherEducation,Employment, Science and Technology has introduced an online direct entry system called STELA to streamline government reporting requirements associated with the delivery of training by Registered Training Providers (RTOs).

This system has a two-fold benefit:

•RTOsthatdonothaveenrolmentsystems can directly enter their information into STELA.

•RTOswiththeirownenrolmentsystemcan upload files into STELA to avoid duplication of effort.

Savings

More than 100 RTOs are using the new system which is saving the sector about $3 million a year.

Snapshot

Web system for recognising skills

A new web-based system deployed by TAFE SA Regional is helping to simplify and streamline the assessment of workers for recognition of prior learning (RPL). The system was successfully trialled as a pilot for community services in regional South Australia where it can save significant travel and labour time. Longer term the initiative has broader application and savings potential.

Savings

Simplification of RPL processes in TAFE SA Regional is predicted to result in annual savings of $1.4 million.

Snapshot

Tick for prior learning

Recognising a person’s existing skills and using it as credit towards other qualifications is improving industry access to qualified staff. RPL has been trialled with the support of employers and the feedback has been positive. Employees can achieve qualifications quicker which reduces time away from work and the cost of hiring a replacement.

Savings

TheDepartmentofFurtherEducation,Employment, Science and Technology initiative will reduce training timeframes and costs. Annual savings are estimated at $2.8 million.

27

FUTURE DIRECTIONS /The State Government’s two-phase red tape reduction program finished on schedule and ahead of the initial target – but that’s not the end of the process of making South Australia a business-friendly and highly competitive environment for investors.

Processes are now in place to consolidate the gains and to keep building a culture that avoids an increase of red tape in the future.

The Government is determined to maximise the benefits delivered to the community by its regulatory activities, while avoiding or eliminating unnecessary compliance costs.

The regulatory impact assessment process (see page 22) is being closely monitored for compliance and will be subject to review.

The review will consider ‘best’ or ‘leading’ practices identified in the Productivity Commission’s current benchmarking study of regulatory impact assessment processes in different Australian jurisdictions.

Other focus areas under the future agenda include:

• Supportinglocalgovernmentinitsefforts to cut red tape (see page 19).

• Activeinvolvementatthenationallevel to support COAG’s regulatory reform program (see page 18).

• Promotionofmodern,bestpracticeapproaches to regulating. For example, in May this year the Government facilitated a workshop by Professor Malcolm Sparrow from Harvard University on risk-based regulation.

Seven strategic priorities

The future reform agenda will also focus on identifying regulatory impediments which might hinder the Government’s seven strategic priorities:

• Creatingavibrantcity

• Maintainingsafecommunitiesandhealthy neighbourhoods

• Premiumfoodandwinefromourcleanenvironment

• Anaffordableplacetolive

• Everychanceforeverychild

• Growingadvancedmanufacturing

• Realisingthebenefitsoftheminingboom for all.

Snapshot

Mining boom

Measures are being considered to support miners planning new development to ensure South Australians benefit from the State’s mineral wealth.

To further streamline regulations and improve cross-government coordination, a review is being undertaken to identify areas for improvement in the assessment processes for mine approvals and construction.

This will include reviewing environmental assessment and approval procedures in line with the new national reform agenda.

28

Snapshot

Creating a vibrant city

The State Government is introducing regulatory reform in several areas to support the creation of a vibrant city. Initiatives include:

• Respondingtobusinessandcommunity calls for more flexible shopping hours. Changes to legislation earlier this year allows shops in the AdelaideCBDtoopenonmostpublicholidays.

• Amajoroverhaulofplanninganddevelopment laws in central Adelaide (see page 20).

• Anewclassofsmallbarlicenceproposed by the Attorney-General to bring diversity and greater life to Adelaide. This will involve changes to liquor licensing legislation.

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Appendix 1 – Summary of major red tape reduction initiatives/

Current agency Reform Summary Annual Savings to Business

DECD Streamlined procurement process for simple procurements

Previously required three written quotes - now require three verbal quotes

$9,975,000

Total Savings Initiatives - Department for Education and Child Development (DECD) $9,975,000

DECD Streamlined contract process for Building the Education Revolution (BER)

Process streamlined through use of standard building designs, direct contracting, hands-on involvement by schools, use of IT systems for tender applications and for builders to report on progress

$9,517,000

Total DECD One-Off Savings $9,517,000

DEWNR Standardised tender and contracting processes Ensure that consistent processes and documents are used across government to lessen confusion by Tenderers between agency processes so they only need to be familiar with one set of documents.

$11,000

DEWNR Increased use/creation of Panel Contracts for operational and administrative services

Reduced time in quoting for repeat work for operational DEWNR matters.

$46,000

DEWNR Extension of Commercial Tour Operator licence terms in National Parks

Increase term of Commercial Tour Operator licences from annual to three or five years.

$12,000

DEWNR Reduction in processing times involved with Well Construction Permit applications

Enable online lodgement and payment of Well Construction Permit applications using SmartForms

$62,000

DEWNR Reduction in processing times involved in water allocation and permits

Improvement in the electronic capabilities of the Water Licensing System enabling a reduction in processing times for water licence applications

$1,500,000

DEWNR Streamlined processes for water trades Simpler and faster processes to reduce transaction times for water trades

$1,600,000

DEWNR Reduction in fees for water trades Internal processing efficiencies have been achieved to enable a reduction in fees for water trades.

$700,000

Total Savings Initiatives - Department of Environment, Water and Natural Resources (DEWNR) $3,931,000

DCSI Streamlined screening processes for suppliers & community service organisations

Reduced costs for suppliers and community service organisations in obtaining police checks

$1,164,000

DCSI Streamlined procurement processes for housing construction & maintenance

Implementation of a streamlined procurement and contract management model for Nation Building project

$374,000

DCSI Streamlined process for grant applications Implementation of an online facility for applying for low value, repetitive grants

$11,000

DCSI Streamlined grants procedures & documentation Enhanced grants distribution processes in the ageing sector, including use of direct allocation

$45,000

DCSI Streamlined grants procedures & documentation Enhanced grants distribution processes in the disability sector, through implementation of three year funding agreements

$23,000

DCSI Streamlined grants procedures & documentation Reduced frequency of acquittals and other financial reports for lower value grants

$81,000

Total Savings Initiatives - Department for Communities and Social Inclusion (DCSI) $1,698,000

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Appendix 1/

Current agency Reform Summary Annual Savings to Business

DFEEST Streamlined procurement processes Changes to thresholds for requirement for single quote, 3 quotes, & tendering

$84,000

DFEEST Streamlined procurement processes Implementation of an online travel booking system $17,000

DFEEST Streamlined process for funding applications Implementation of an online applications system for Productivity Places Program applicants

$6,000

DFEEST Streamlined process for recognition of existing skills

Implementation of a new methodology for Recognition of Prior Learning (RPL)

$2,825,000

DFEEST Delivery of OHS&W training in regional SA Training in OHS&W provided by TAFESA Regional for regional businesses

$1,403,000

DFEEST Simplification of RPL processes in regional SA Implementation of a web-based RPL tool ("Skills Tracer') $1,410,000

DFEEST Streamlined procurement processes Implementation of a system for electronic lodgment of tenders

$10,000

DFEEST Streamined processes for submission of information

Implementation of an online facility (STELA) for Registered Training Organisations (RTOs) to comply with data reporting requirements

$3,035,000

DFEEST Streamlined process for funding applications Implementation of a system for online claims for User Choice Funding

$209,000

DFEEST Streamlined procurement processes A simplified process for invoicing $148,000

DFEEST Streamlined process for funding applications Minimisation of the cost of accessing administered grant programs (Employment Programs)

$17,000

DFEEST Streamline the recognition of skills of potential and existing workers

Implementation of Skills Recognition Services $870,000

DFEEST Streamlined process for recognition of existing skills

Enhanced recognition of prior learning activities for existing employees

$1,746,000

DFEEST Streamined processes for submission of information Improved efficiency for RTOs with on line data entry $589,000

DFEEST Streamlined process for payment of student fees Introduction of an online option for payment of student fees

$5,796,000

DFEEST Streamlined admissions process for TAFESA students

Implementation of a new Student Information System that will reduce information requirements and reduce application times

$3,700,000

Total Savings Initiatives - Department of Further Education, Science and Technology (DFEEST) $21,865,000

HEALTH Streamlined procurement processes Increase in threshold for the requirement of three written quotes from $110,000 to $220,000

$618,000

HEALTH Reduced tendering costs for prospective suppliers Implementation of an electronic contract management system to provide more efficient & effective contract management

$5,404,000

HEALTH Reduced tendering costs for prospective suppliers Implementation of an e-Procurement system to replace manual handling of invoices

$1,861,000

HEALTH Reduced tendering costs for prospective suppliers Use of purchase cards for transactions less than $2,000 $7,520,000

HEALTH Reduced costs for suppliers to SA Health Reduction in cost of shipping product to all business units with the implementation of the centralised SA Health Distribution Centre

$4,296,000

HEALTH More efficient payment options Cheque payments replaced with electronic funds transfer $1,087,000

HEALTH Standardised data collection Implementation of standard reporting process and template to meet SA Health data requirements

$1,175,000

Total Savings Initiatives - Department of Health and Ageing (Health) $21,961,000

31

Current agency Reform Summary Annual Savings to Business

AGD Private Administrator reporting project Simplified reporting by private administrators appointed for living clients by Guardianship Board where the protected person has low value assets.

$152,000

AGD Interim approvals for Responsible Persons Issuing of interim approvals so applicants who wish to perform certain roles for a liquor and gambling licensee can commence their role before the application has been finalised.

$9,274,000

AGD COAG Reform - ABN/Business Names Registration Implementation of a national ABN / Business Names registration system so that businesses only need to register once to operate anywhere in Australia. Lower registration fees for SA businesses

$3,632,000

AGD Fees waived for Low Value Estates Clients with defined low level of net assets have annual administration and audit fees waived by Public Trustee

$18,000

AGD Standardised grant agreement for low risk grants of $110,000 or less (including GST)

Developed standardised, user friendly grant agreement for suitable ‘low risk’ grants for $110,000 or less (including GST)

$36,000

AGD Tax inspection fees waived for Low value Estates No tax fees are charged to Personal Estates clients where a review of electronic data shows that personal income tax returns are not required. 

$56,000

AGD Reduced supplier late fee penalties Absorption of client late fees by Public Trustee where delays are no fault of client. Tighten procedures to avoid late fee payments.

$1,000

AGD COAG Reform - Product Safety Elements of product safety transferred to Commonwealth so only one system to comply with

$504,000

AGD COAG Reform - Trade Measurement Trade measurement functions transferred to Commonwealth so only one set of legal and technical standards to comply with

$488,000

AGD Review of Financial Assessment Methods for Occupational Licensing

Apply differing levels of financial criteria for the three main licence categories commensurate with degree of consumer risk

$5,368,000

AGD Review of ‘Reinstatement’ of Licenses Enable persons who have had their license administratively cancelled for failing to lodge a renewal return within the last 12 months to complete simplified re-application process to re-obtain license.

$1,823,000

AGD Reduced reporting requirements for Multicultural SA grants

Reduced reporting requirements Multicultural Grants Scheme and the Ethnic Communities Organisations Land Tax Relief Scheme

$1,000

AGD Increased availability of online services by the Public Trustee

Expansion of online services and provision of information online

$2,000

AGD Removal of Floating Floors licence Removal of requirement to licence for laying floating floors from the Building Work Contractors Act 1995

$5,000

AGD Lottery Licensing - online trade promotion applications

Enable persons applying for trade promotion to lodge application online

$107,000

AGD Abolition of ‘call over’ process Remove requirement to have solicitors and applicants attend a ‘call over’ re contested applications under the Liquor and Gaming Acts

$59,000

AGD Cost to implement new/amend existing regulations

-$814,000

Total Savings Initiatives - Attorney Generals Department (AGD) $20,712,000

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Appendix 1/

Current agency Reform Summary Annual Savings to Business

DPC Harmonisation of IR legislation to obtain national uniformity

All corporate bodies (approximately 70-80% of total workforce) and sole traders and partnerships (approximately 20 to 30% of total SA workforce) are now in the federal system .

$7,449,000

DPC Amendment to Shop Trading Hours Act 1977 Minister for Industrial Relations may now grant blanket exemptions to shops to trade during the Christmas trading period.

$36,000

DPC Streamlined reporting requirments Reduced reporting requirements (up to 50%) for funding agreements for Aboriginal communities and organisations

$26,000

DPC Online nominations for the 2011 Ruby arts and cultural awards

Nominations for seven out of the ten categories of the Ruby awards can be submitted completely online at www.rubyawards.com.au.

$4,000

DPC Online application forms for the arts funding programs

Visual Art, Craft & Design and Performing arts applicants are currently required to provide 10 copies of their application, and Literature applicants 6 copies.

$17,500

DPC Enhanced mutual recognition Jurisdictions have worked together to agree on equivalent occupational licences across Australia, so that joint declarations by ministers can be made.

$10,000

DPC Improved access to records of the courts Where open access determinations have been made, customers no longer need to seek the permission of the Registrar or the Chief Justice to access those records.

$1,500

DPC Streamlined copyright approvals for publication of information from government archives.

Researchers will be able to obtain approval from State Records rather than the agency responsible for the record.

$5,000

Total Savings Initiatives - Department of the Premier and Cabinet (DPC) $7,549,000

PIRSA Reduced cost of processing payments for citrus levies

Provision of more efficient & flexible bill payment options (direct debit - BPAY)

$63,000

PIRSA Deregulation of the barley industry Annual application fee and license fees no longer payable

$219,000

PIRSA Streamlined procurement processes Increased threshold for requirement to seek 3 quotes from $2,200 to $11,000

$296,400

PIRSA Streamlined procurement processes Increased threshold for requirement to go through open tender process from $55,00 to $110,000

$12,400

PIRSA More efficient payment options Giving businesses the function to pay invoices via electronic funds transfer (EFT)

$703,000

PIRSA Development approval over entire Aquaculture zones

Removal of requirement for applicants for new & moving aquaculture sites to apply separately for development approval following approval of their aquaculture lease

$11,500

PIRSA Streamlined aquaculture lease registration processes

Allow third party interests to be taken over leases (e.g. banks) via the Aquaculture Act rather than the Land Titles Office

$247,800

PIRSA Centralised indemnity scheme for aquaculture operators

Allow lease holders to contribute to a centralised indemnity fund (held by the Minister) rather than the current requirement to contribute to an indemnity fund approved by the Minister or hold a bank guarantee in favour of the Minister for a minimum of $10,000

$180,000

33

PIRSA Removal of need for escape & entanglement strategies - aquaculture

Place minimum standard of performance in regulations which will remove the need for individual operators to provide strategies outlining how they will prevent and manage escapes and entanglements

$27,000

PIRSA Aquaculture site amalgamation Ability to amalgamate sites will result in reduced marking requirements and reduce the amount of reporting and paperwork required from operators

$151,000

PIRSA Abridged assessments for some application types - aquaculture

Reduced the complexity of information required for certain types of applications; e.g. a change to lower risk species

$45,000

PIRSA Extension of renewal periods for marine aquaculture leases and landbased licences

Some landbased renewals granted for 2-3 years instead of 1 year, renewals will continue to be assessed and granted longer terms where appropriate. Reduce paperwork for all operators and PIRSA

$92,700

PIRSA Removal of requirement for some activities to be licensed under the Aquaculture Act

Activities with negligible levels of risk would not be required to be licensed under the Act

$15,840

PIRSA Review of landbased aquaculture licence classifications

Some landbased aquaculture activities classified as having a moderate risk may be classified as a low risk if certain criteria are in place

$15,900

PIRSA Acceptance of polymerase chain reaction (PCR) probe monitoring

PIRSA has negotiated a research program for the finfish industry that will remove requirement for manual analysis to be undertaken

$30,000

PIRSA Use of PIRSA officer to support existing tuna environmental monitoring requirements

PIRSA officer to be present on board industry vessels whilst monitoring requirements are undertaken reducing total staff required from the company

$27,000

PIRSA Minor use permits for health treatments - aquacutlure

Reduce need to obtain treatment approvals from the Minister/APVMA for the use of certain chemicals for routine treatment of aquatic organisms

$3,600

PIRSA Consolidate species registrations for Biosecurity SA

Consolidated All Species registrations from 1 form per species to 1 form per person regardless of number of species - reduces number of registrations to be completed

$48,950

PIRSA Amendments to the Livestock Regulations 1998 “Fine tuning” of certain existing provisions, removing obsolete or unnecessary provisions and including new provisions that will reduce any unnecessary regulatory burden on the livestock industries.

$21,850

PIRSA Review NLIS tag order system Remove the requirement for cattle producers to contact PIRSA to verify cattle registration details and complete a PIRSA order form before lodgement of order with tag manufacturer

$41,400

PIRSA Onion Smut inspection program Inspection program has been modified by reduction in frequency of required inspections, decreasing costs to industry.

$29,900

Total Savings Initiatives - Department of Primary Industries and Regions South Australia (PIRSA) $2,283,240

PIRSA Aquaculture: lease registration under Aquaculture Act 2001

Savings achieved by removing requirement to lodge new subdivision plans with the Land Service Group (lodgement fee + applicant's time), mortgage discharge/ re-establishment costs, time and cost savings for PIRSA (which are passed on to the applicant) if head leases and sub-leases do not need to be prepared and executed. 

$1,500,000

Total PIRSA One-Off Savings Initiatives $1,500,000

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Appendix 1/

Current agency Reform Summary Annual Savings to Business

DMITRE Ask Just Once - Single entry point to access government

Provision of a Single Entry Point to make it simpler and easier for businesses to access government information and services

$563,000

DMITRE Insurance requirements of Small Business Coaches waivered

A waiver for the insurance requirements for the Small Business Coaches who deliver the Business Owners Coaching Program

$75,000

DMITRE Short term Amendments to the Mining Act 1971 Removal of necessity to hold Miner's Rights to peg a mineral claim

$4,200

DMITRE Provide the ability to produce dimension stone as a by product of processing on a mineral lease

$29,400

DMITRE Provide a provision to keep a tenement from expiring whilst it is subject to court proceedings.

$4,900

DMITRE Provide the Mining Registrar with a discretionary power to accept mining tenement applications applications greaterthanthemaximumsizeof250ha

$14,700

DMITRE Provide the Mining Registrar with a discretionary power to provide an exemption for placing pegs in the ground to deliniate the boundary of a mineral claim

$25,900

DMITRE Remove reference to "prescribed forms" and the requirement to execute forms under company seal

$9,000

DMITRE Implementation of Tenement Return Electronic Lodgement system (TReL)

Phase out the manual preparation and posting of tenement mining returns to PIRSA.

$22,800

DMITRE One window into Government for mineral industry approvals

Development of MOUs and Administrative Agreements with DEWNR

$100,000

DMITRE Short term Amendments to the Mining Act 1971 Reduce content requirements for Program for Environmental Protection & Rehabilitation (PEPRs)

$60,000

DMITRE Allow for regional exploration PEPRs $378,000

DMITRE Increase standard renewal period for leases from 7 years to 21 years.

$560

DMITRE Reduce need for compliance reporting on Extractive Minerals Leases (EMLs)

$48,000

DMITRE Amendments to Petroleum Act 2000 SizeofGeothermalExplorationLicenses(GELs)atMinister's discretion/maximum 10,000sq km

$66,000

DMITRE Submission of one annual report for multiple Petroleum Production Licenses (PPLs)

$14,400

DMITRE Introduction of new provisions for royalty payments to be refined

$35,000

DMITRE One window into Government for petroleum & geothermal industry approvals

Development of MOUs and Administrative agreements with SWSA & DEWNR for co-regulation for petroleum & geothermal energy exploration, development & production

$12,000

DMITRE Streamlined reporting and data submission Lodgement of data by companies in an acceptable manner and form

$24,000

DMITRE Amendments to Electricity (Principles of Vegetation Clearance) Regulations 1996

Changes to the regulations will require less tree pruning around low voltage powerlines in metropolitan Adelaide

$1,200,000

Total Savings Initiatives - Department for Manufacturing, Innovation, Trade, Resources and Energy (DMITRE) $2,686,860

35

Current agency Reform Summary Annual Savings to Business

DPTI Operation of tri-axle dollies in SA Allow accredited tri-axle dollies to operate in SA $160,000

DPTI Electronic delivery of the Property Interest Report (PIR)

Email the PIR and Certificate of Title in PDF format to replace the hard copy that is delivered through the post (the PIR is delivered in 60 seconds rather than 2 days).

$275,000

DPTI Amendments to the Real Property Act 1886 Streamline registration of documents lodged in series reducing need to withdraw and re-lodge documents in correct order

$1,896,000

DPTI Creation of standard terms and conditions for encumberances, bills of sale stock mortgage or wool lien

$273,000

DPTI Streamlined process for dealing with easements in land subdivisions

$100,000

DPTI Removal of obligation to register on duplicate instruments

$77,700

DPTI Simplify process to extend or contract a mortgage or encumberance with creation of an easement

$60,000

DPTI Streamlined Vehicle Inspection Task Removal of requirement for a roadworthy inspection at Regency Park for brand new Restricted Access Vehicles

$174,000

DPTI Streamlined procurement processes Increase in the threshold for one verbal quote (originally three quotes) from $5,500 to $11,000, including building management which currently has a $3,000 threshold.

$2,634,000

DPTI Streamlined transactions with building/maintenance contractors

Introduction of price roll-over (3 years) for approved preventative maintenance contractors for work programs (saving time for contractors who submit annual unit rates for small value scheduled maintenance services on plant and equipment)

$64,000

DPTI Streamlined transactions with building/maintenance contractors

Expansion of Contract Service Orders (CSO's) for Building Management Facilities Services metro sector preventative maintenance operations. This will give contractors a recipient created tax invoice which can be used for future invoice payment.

$26,000

DPTI Streamlined permitting for Heavy Vehicles Implementation of an online application and payment system for permits

$800,000

DPTI Amendments to the Metropolitan Adelaide Road Widening Plan (MARWP) to remove properties not affected by proposed road widening plans

Removal of unnecessary building controls & applications for consent for building work by ensuring only those properties likely to be affected by future widening are included in the current MARWP

$20,000

DPTI Planning system in South Australia - Residential Code

Introduce Residential Development Code to increase the range of as-of-right development in residential areas.

$34,700,000

DPTI Bulk renewal of registration for fleet vehicles Changes to registration & licensing systems to allow a common registration expiry date for vehicle fleet owners

$3,360,000

DPTI COAG Reform - Rail Safety Reduction in safety compliance costs due to a more unified national system

$273,000

Total Savings Initiatives - Department of Planning, Transport and Infrastructure (DPTI) $44,892,700

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Appendix 1/

Current agency Reform Summary Annual Savings to Business

DTF COAG Reform - Harmonisation of Pay-roll Tax legislation and administrative procedures with other jurisdictions

Amendments to the Pay-roll Tax Act 1971 to allow for the adoption of common provisions and Common Revenue Rulings, Exemptions, Consistent Liability and Grouping provisions and online learning modules

$3,531,000

Amendments to the Gaming Machines Act Elimination of the State Procurement Board's role in the sale or purchase of gaming machines.

$210,000

Amendments to the Stamp Duties Act 1923 - abolition of Rental Duty

Financial institutions are no longer required to comply with associated administrative requirements such as maintaining reporting systems.

$280,000

DTF Amendments to the Stamp Duties Act 1923 - abolition of Mortgage Duty

Financial institutions are no longer required to comply with associated administrative requirements such as maintaining reporting systems.

$1,591,000

DTF Provision of a Supplier portal to government: E-Procurement Project

As part of the e-Procurement project, key aspects of functionality will reduce supplier transaction costs

$606,000

Total Savings Initiatives - Department of Treasury and Finance (DTF) $6,218,000

EPA Reform of Adjacent Premises Notification requirements

Simplify notification requirements to match environmental and social risks

$3,000

EPA Redesign of EPA website Improve the functionality and useability of the EPA website for all users.

$115,000

EPA Introduction of flat application fee for a Licence Removing scale for determining application fee for licence. The fee is currently determined by a scale based on the annual authorisation fee. This is difficult to determine before an application has been properly assessed.

$16,000

EPA Introduction of a tiered licensing system EPA has introduced a 3 tiered licensing system that reflects risk of operations and also licensee behaviour with best performers being subject to reduced frequency of inspections & less demanding licence conditions

$19,000

EPA Accreditation of third party testers of radiation apparatus to enable independent compliance testing for registration to be granted.

Amendments to the Radiation Protection and Control Act 1982 provide for accreditation of third party compliance testers. An informal accreditation of testers has been implemented

$120,000

EPA Enablement of researchers to conduct research in accordance with the ‘Code of Practice for Exposure of People to Ionising Radiation for Research Purposes’ without having to seek EPA approval.

Pending regulatory amendments for permanent solution, EPA to grant a conditional exemption from the requirement to seek approval for research subject to compliance with the Code of Practice. Amend Radiation Protection and Control (Ionising Radiation) Regulations 2000, under the Radiation Protection and Control Act 1982.

$12,000

EPA Consolidation of all Regulations under the Environment Protection Act 1993 in one document

Reduced time required to understand regulatory requirements under the Environment Protection Act 1993

$83,000

EPA Implementation of a more efficient approval and regulatory arrangements regarding managed aquifer recharge (MAR) development

Establishment of a web based MAR Portal providing consolidated information from relevant Government agencies for development, operation and regulation of MARs eliminating the need to approach agencies individually and provide a risk management checklist to help ensure operational approval prior to construction. Consolidate licensing of operation of MARs under the Environment Protection Act 1993

$12,000

Total Savings Initiatives - Envrionment Protection Authority (EPA) $380,000

37

Current agency Reform Summary Annual Savings to Business

SA WATER Implementation of quarterly meter reading and billing

The introduction of the quarterly billing system will mean that business customers will receive water use bills for water they have already used four times a year instead of twice, smoothing out impacts on cash flow

$200,000

SA WATER Provision of electronic responses to requests for information for conveyancing

Hard copy system replaced with electronic responses allowing conveyancers to finalise transactions more quickly

$225,000

SA WATER Implementation of an electronic Customer Application Management System

Integrated decision-making and automated task allocation for water and wastewater related connection and land development applications

$3,319,000

SA WATER Reduced plumbing compliance obligations Hot water tanks - only one certificate of compliance, rather than 2, is now required by the plumber when installing hot water tanks

$1,398,000

Total Savings Initiatives - South Australian Water Corporation (SA Water) $5,142,000

WORKCOVER Payment of levy in advance Employers are now required to make 10 equal payments instead of 12 per annum

$1,117,000

WORKCOVER Provision of an online facility for end of year reconciliation & declaration of wages

At the end of each financial year, employers are required to provide an end of year reconciliation and declarations of their wages. WorkCover has continued to make this process simpler and more accessible for employers through its on-line facility.

$562,000

WORKCOVER Change from calendar year to financial year for reporting remuneration

This change allows very small employers to report their reumneration by financial year than calendar year, in line with other reporting requirements

$100,000

WORKCOVER Increased options for provision of information With the implementation of a new employer premium payment system, an employer now has the option of providing information (e.g. when any of the details they provide on their initial registration form have changed) over the phone

$128,000

WORKCOVER Revised estimate of remuneration by employers Consolidation of three existing forms, plus minor changes to terminology

$6,000

Total Savings Initiatives - Workcover Corporation of South Australia (Workcover SA) $1,913,000

38

Hon Tom Koutsantonis MP

The Hon Tom Koutsantonis MP is the Minister for Manufacturing, Innovation and Trade and chair of the State Government’s Competitiveness Council.

He also holds office as Minister for Mineral Resources and Energy and

Minister for Small Business. Mr Koutsantonis was elected to the South Australian State Parliament in October 1997 and appointed to the Labor Ministry in March 2009.

Mr Kevin Osborn

Mr Osborn is a non executive Director of Calgary based Viterra Inc, a global agriculture Logistics Company listed on the Toronto Stock Exchange. He is a member of the Audit and Health/Safety Committee. Mr Osborn is Deputy Chairman of the Economic Development Board of South Australia and Chairman of the Adelaide Desalination Project Steering Committee. Prior to the beginnings of his Director career, Mr Osborn had a 30 year career in international financial markets where he held various global senior management positions with the USA’s then 4th largest banking corporation, Bank One, which is now part of J.P. Morgan Chase.

Dr Ian Gould

Dr Gould, a geologist by profession, has 40 years experience in the minerals industry in various senior positions, mainly within the CRA/Rio Tinto Group, including as Managing Director-Australia. In 1997 he moved to Adelaide as Group Managing Director of Normandy Mining Ltd, before retiring from executive positions in 2000. He has served on numerous research, environmental and commercial boards and is a current member of the Economic Development Board. Dr Gould has been Chancellor of the University of South Australia since July 2008.

Dr Leanna Read

Dr Read was the founding Managing Director and CEO of biotechnology company, TGR BioSciences Pty Ltd from 2001-2011. She is currently on the board of two biotechnology companies; Council member of the University of South Australia; and a member of BioAngels, an Adelaide-based Angel investor network. In addition to TGR BioSciences, Dr Read has been CEO of several research and commercial ventures, including the Cooperative Research Centre (CRC) for Tissue Growth and Repair, widely considered to be one of the most successful commercially focussed CRCs.

Mr Jerome Maguire

Mr Jerome Maguire commenced as Chief Executive Officer of the Motor Accident Commission on 25 June 2012. Before his current appointment, Mr Maguire was the Chief Executive of the Attorney-General’s Department. In this role he focused on improving timelines in the criminal justice system and reducing Government bureaucracy for the business community. He is renowned for his innovation, expertise in leading organisational change and delivering large-scale projects that reduce costs and improve efficiency. Prior to joining the justice sector, he was involved in many aspects of public sector reform including leading strategic reviews of various South Australian Government departments and introducing procurement and service provision reform to the health sector.

*The Competitiveness Council was wound up on 30 June 2012.Appendix 2 –

Competitiveness Council Membership/*

39

Mr Lance Worrall

Mr Worrall is the Deputy Chief Executive of the Department for Manufacturing, Innovation, Trade, Resources and Energy and formerly Chief Executive of the Department of Trade and Economic Development. He was Chief Executive of the Public Sector Performance Commission, where he worked principally on development of high performance cultures and systems in public sector agencies, effective leadership, and nurturing of collaborative modes of leadership and problem solving through cross-agency action teams. He was economic adviser to the Hon Mike Rann MP when he was Leader of the Opposition and then became Premier Rann’s principal policy adviser. Mr Worrall has also been a key designer and driver of South Australia’s Strategic Plan. He is currently a member of the Economic Development Board.

Ms Wendy Campana

Ms Campana is the Chief Executive Officer of the Local Government Association of South Australia (LGA). She has an extensive background in public sector management, organisational development, education and training, industrial relations, intergovernmental relations and governance, and political lobbying. Ms Campana is currently a board member of several LGA bodies, and is a member of the State Emergency Management Committee, the Urban Water Stakeholder Reference Panel, the University of Adelaide Business School Advisory Group, and the SA Stormwater Management Authority.

Ms Robyn McLeod

Ms McLeod was appointed South Australia’s first Commissioner for Water Security and has an extensive background in water management. She resigned as Commissioner for Water Security effective 31 March 2011.

Ms Pauline Peel

Ms Peel was Deputy Chief Executive of the Department of the Premier and Cabinet until December 2011. Previously, she was the Deputy Director General, Aboriginal and Torres Strait Islander Partnerships with the Department of Communities in Queensland. Prior to this, she worked in senior management or consultant roles in the arts, economic development and social development. She stepped down as a Competitiveness Council member upon leaving the Department of the Premier and Cabinet.

Mr Garry Goddard

Mr Goddard is a Deputy Under Treasurer in the Department of Treasury and Finance (DTF) in South Australia. Prior to that he was Executive Director of the Energy Division at the Department for Transport, Energy and Infrastructure and General Manager of the Microeconomic Reform and Infrastructure Branch in DTF. Before joining the SA public sector, he worked with Charles River Associates (CRA), an international finance and economics consultancy firm, and held a range of positions in the Australian Public Service (including at the Department of the Prime Minister and Cabinet and the Australian Competition and Consumer Commission).

Dr Campbell Gemmell

Dr Campbell Gemmell is Chief Executive of the Environment Protection Authority, South Australia’s independent environment regulator. Before taking up the position in January 2012, Dr Gemmell was Chief Executive of the Scottish Environment Protection Agency. Dr Gemmell has a first-class honours degree in Geography and a PhD in Glaciology from Aberdeen University. In 2007 he was appointed Honorary Professor of Environmental Regulation and Policy at Glasgow University.

40

Appendix 3 – Red Tape reduction Champions/

Department for Communities and Social Inclusion (DCSI)

Kelly TattersallDirector, Procurement and Grantskelly.tattersall@dfc.sa.gov.au

Department for Education and Child Development (DECD)

Ms Deb O’RileyDirector, Business Servicesdeb.oriley@sa.gov.au

Department of Environment, Water and Natural Resources (DEWNR)

Maria ToscanoManager, Corporate Governance & Policytoscano.maria@saugov.sa.gov.au

Oliver Beres (formerly champion for Department for Water)Manager, Prudential Management, Corporate Servicesoliver.beres@sa.gov.au

Department of Further Education, Science and Technology (DFEEST)

Robin MurtExecutive Director, Corporate Servicesrobin.murt@sa.gov.au

Department of Health and Ageing (Health)

Steve MoroDirector, Procurementsteve.moro@health.sa.gov.au

Attorney Generals Department (AGD)

Ruth AmblerExecutive Director, Strategic Policy & Organisational Performanceambler.ruth@agd.sa.gov.au

Department of the Premier and Cabinet (DPC)

Tony MacharperChief Officer, Policy and Strategy, SafeWork SA macharper.tony@dpc.sa.gov.au

Department of Planning, Transport and Infrastructure (DPTI)

Chris Oerman (formerly champion for Department of Transport Energy and Infrastructure)Executive Director, Corporate Serviceschris.oerman@sa.gov.au

Andrew McKeegan (formerly champion for Department of Planning and Local Government)Acting Director, Corporate ServicesAndrew.McKeegan@sa.gov.au

Department of Primary Industries and Regions South Australia (PIRSA) And

Department for Manufacturing, Innovation, Trade, Resources and Energy (DMITRE)

Tim MaresDirector, Corporate Strategy and Policytim.mares@sa.gov.au

Department of Treasury and Finance (DTF)

Mike WalkerCommissioner of State Taxationmike.walker@sa.gov.au

Environment Protection Authority (EPA)

SuzanneBehrendtSenior Consultant, People, Policy and Systemssuzanne.behrendt@epa.sa.gov.au

South Australian Water Corporation (SA Water)

Geoff HenstockCorporate Secretarygeoff.henstock@sawater.com.au

WorkCover Corporation of South Australia (WorkCover SA)

Jan WheatleyManager, Strategic Initiativesjwheatley@workcover.com

Published November 2012.

No responsibiity for any loss or damaged caused by reliance on any of the information or advice provided by or on behalf of the State of South Austraila, or for any loss or damage arising from acts or omissions made, is accepted by the State of South Australia, their officers, servants or agents. Produced by the South Australian Department of the Premier and Cabinet. Content correct at time of printing.

www.premcab.sa.gov.au