Opinion - The wrong solution to cutting start-up costs

Why the new start-up permits create more complexity for small businesses

In the State of the State address, the Premier reaffirmed his commitment to reducing red tape. Local government agrees that starting a small business should be simple and provide maximum certainty. But the Government’s proposed Single Start‑Up Permit (SSUP) does the opposite.

The SSUP claims to cut red tape by giving new small businesses a single permit to operate for 12 months as they obtain standard approvals. We’re united on the goal of reducing start‑up costs and accelerating approvals.

This is the right problem to tackle, but the government has started with the wrong solution.

Councils work with small businesses every single day and see their challenges firsthand: from the café owner working through food safety requirements to the plumber navigating building rules. They know what helps, what slows things down, and where better support is truly needed.

Unfortunately, the SSUP proposal does not reduce red tape. It adds more.

Instead of simplifying the system, it proposes a new permit and assessment process, and potentially an entirely new authority to run it. Local government has serious concerns about the extra administrative load this would place on start-ups. Creating another system only diverts resources away from improving the current one, which start-ups would still need to navigate if the SSUP proposal progresses.

Most worrying are the risks created for start-up businesses themselves. A 12‑month provisional permit offers no guarantee of ongoing operation. No café, barber or florist can confidently invest thousands of dollars if they could be shut down in a year because full approvals cannot be secured.

There are also real concerns about public health and safety. Allowing some businesses to operate without standard approvals, even temporarily, exposes the community and the business itself to risks that current regulations are designed to prevent.

There is a better path.

Councils support genuine reform that makes life easier for small business. We have been calling for practical steps that would create meaningful, lasting change without compromising safety or business confidence. Things like digital application portals, streamlining current approval requirements and better support for council business support services.

Effective reform can only be developed by working with councils, not around them.

Let’s fix the system we have, not tack on a new one that just adds complexity and risk. Wrapping red tape in more red tape is not going to help small businesses get going.

Dion Lester
Chief Executive Officer – Local Government Association of Tasmania

As published in The Advocate on 9 March 2026