Senate Economics Legislation Committee, , 5:19:45 to 5:26:06
Markets Group officials provide updates on the legislative progress and implementation status of 14 red tape reduction measures.
Topics: Law reform, Government spending
Speakers: Senator Kerrynne Liddle, Hon Katy Gallagher, James Kelly, Michael Quinlivan, Senator Lisa Darmanin
Um I'd like to um ask about red tape accounting values if you've got somebody who could help you with that in the markets group.
Oh, no for markets.
Yes.
So I think is does anyone else have any corporate questions? No. So I think we can release representatives from corporate. Thank you very much for coming and invite Treasury officials for Markets Group to join us. Thank you. Well, they're in the room. And then thank you. Yeah, Senator Little, you will have the call first off. Maybe we'll just spend a moment until the rest of the officials join us. Right. Thank you. I now welcome representatives from the Department of Treasury Markets Group. And I will go straight to Senator Little for questions.
Thank you. I want to turn to the government's red tape cuts in financial services and in reference to the MAG by May Budget fact sheet, which says the government will deliver reforms that reduce regulatory burden by 10.2 billion per year once fully implemented, including 780 million a year in financial services. That same fact sheet outlines 14 red tape reduction measures in financial services that it says would cut at 78 million each year. As of today, how many of those 14 have actually been implemented?
Senator James Kelly, Deputy Secretary Markets Group. I think I'll turn to Mr. Quinn Livan to go through the 14 measures that you do.
Michael Quinneman, Assistant Secretary of Corporations Branch. Treasury is working through progressing the draft legislation for all those items. They require, they all require legislative instruments. And we've um recently done consultation on the climate-related financial disclosures measure.
So in terms of actual implementation, nothing has actually happened yet. Is that what you're saying to those 14?
Of the 14, they're progressing, and they all require legislative instruments and agreement through those relevant processes, which may include parliament or for a regulation.
So if I'm somebody out there, the number of impact from that announcement is zero right now.
Of the 14, those those measures are still in the process of being implemented.
So the number is zero.
I mean I just add to that, Senator, like there's the $780 million number, but taken as a whole, the financial sector um regulatory package was like 960 because it included some regulatory actions, particularly a measure being delivered by APRA. That's about from memory, that was about 180 million. That has that has happened. So I don't think the answer's zero, and I don't think it's true to say that nothing has happened, as Mr. Quinn Liven said, actually, a number of these things are now gone out the exposure drafts and the consultations are happening on these so that they can happen very soon.
Mr. Kelly, the question is very specific about uh businesses right now having that um um actually a reduction in red tape as a consequence of that announcement. And I get that you mentioned there's explanatory memorandums and there's ministerial consultations going on, but um it it appears that if you ask business, they're saying red tape is getting worse. And I what I'm trying to do here is understand whether in fact the claim that these uh red tape reductions are actually happening at this time is not having an effect on business because they haven't actually progressed to that point where they're being implemented.
I'd be interested to know which if business is telling you which um red tape is increasing, what what what that relates to because I have whole of government regulatory reform responsibilities actually under my portfolio as minister for finance, and so a lot of people I just said this in the previous session, a lot of people raise red tape. You said red tape is increasing, I think, for business, and I'm I'm asking if you can just tell me which what areas that those are in. What what areas of business telling you that red tape is increasing in?
Because Minister Gallagher, I'd be very happy to provide you a list of businesses I've spoken to directly, not right now, but I'd be certainly very happy to provide that. These are manufacturing businesses that I've spoken to directly that talk about red tape increasing, these are real people running businesses.
No, I understand that. I'm just saying what is the red tape that that is increasing for them.
It's a compliance, it's a compliance matter.
In relation to what?
Yes, a commonwealth area of response.
So we have increased red tape on compliance reporting in manufacturing, and that is worrying those.