BUSINESS OUTLOOK IMPROVES DESPITE REGULATION

Written on the 5 December 2013

BUSINESS OUTLOOK IMPROVES DESPITE REGULATION

AUSTRALIAN directors are confident about the economy since the election but are concerned about red tape and regulation, according to the latest Director Sentiment Index (DSI).

The Australian Institute of Company Directors’ DSI end of year survey shows director sentiment jumping 14 points to its highest point since 2011, but remains pessimistic.

Chief executive John Colvin says the improvement follows growing optimism about business and consumer confidence.

“This seems to be, at least in part, fuelled by a dramatic improvement in the perception of the new government,” Colvin says.

For the first time in the survey’s history, the majority of directors (55 per cent) agreed that ‘the current government understands business’ – compared to 8 per cent in April.

The outlook on the US economy’s future is increasingly pessimistic, while Asia continues to be positive and Europe considered the weakest.

Colvin says directors list regulation, global economic uncertainty and low productivity growth as Australia’s biggest economic challenges.

“More than 60 per cent of directors believe that the level of red-tape and the time spent by the board on regulatory compliance has increased over the last 12 months, with more than 70 per cent of directors identifying workplace health and safety and preparing and paying taxes as the aspects of their business most affected by red tape,” he says.

Infrastructure is rated as the top policy priority for the Federal Government, followed by improving productivity.

“This survey has a clear message – business is telling Government loud and clear, that reducing the regulatory burden, both through cutting existing red tape and taking a more efficient approach to creating any new regulation, must be a priority.”


Latest News

CRITICS CALL FOR MORE INDEPENDENT DIRECTORS ON BLUE SKY BOARD

BLUE Sky Alternative Investments (ASX: BLA) has defended its governance and valuation processes in response to severa...

BEGA PAYS $460 MILLION FOR VEGEMITE TO BRING THE ICONIC BRAND BACK UNDER AUSTRALIAN OWNERSHIP

VEGEMITE is back under Australian ownership after Bega Cheese (ASX: BGA) agreed to buy Mondelez International's A...

GUVERA ESCAPES WIND-UP ORDER

GUVERA has avoided being wound up after a claim for a $1.78 million debt by Kwong Properties was dismissed at the ...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

Related News

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

SMES TAKE RETAIL MARKET SHARE AS CONSUMERS CHOOSE PERSONALISATION

IN a battle for the hearts and wallets of Australian consumers, it appears that small and medium retail businesses...

KNOWLEDGE WORKERS AMONG MOST SOUGHT AFTER IN 2017

BUSINESSES searching for efficiencies and improved systems are in search of knowledge workers early this year, say...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter