The government has given the green light to a new system that could significantly streamline firms’ reporting obligations to government, potentially saving businesses millions of dollars.

Commerce Minister Lianne Dalziel and Small Business Minister Clayton Cosgrove said that based on a similar system in Australia, Standard Business Reporting could save New Zealand businesses between $55-75 million a year.

The system will reduce the need for businesses to submit the same or similar information to multiple government agencies, Lianne Dalziel told the 2^nd Annual New Zealand Regulatory Evolution Summit in Wellington today.

"We know from the annual World Bank survey that New Zealand is second only to Singapore in having the world’s most friendly environment for business, but we are always looking for ways to make it quicker, cheaper and easier to firms to transact with government. This is an excellent example of the many arms of government extending a single hand to business."

Mr Cosgrove said that reducing the need for businesses to submit the same or similar information to multiple government agencies would be of huge benefit to New Zealand businesses, particularly small and medium sized firms (SMEs).

"We know that many businesses find it frustrating, time-consuming and costly filling out multiple reports.  Most SMEs need intermediaries such as accountants, lawyers and brokers to assist them report their information to government.  They still perceive compliance costs as the single most important barrier to their growth. Moreover the government’s Small Business Advisory Group’s latest report specifically pointed to the potential benefits of a Standard Business Reporting system as being a key to reducing business compliance costs," Mr Cosgrove said.

The project will also look at the implementation of a Single Business Number (SBN). The introduction of a single unique identifier for business would help eliminate many of the obstacles that currently prevent efficient information sharing across government and contribute to reducing the amount of duplicate information requested by government from business.

The 2008 Budget provides a contingency comprising $7 million in funding this financial year for a cross-government investigation into introducing and implementing the system.  Funding approval now awaits a final report back due to Ministers in June. The initial focus will be on agencies dealing with financial reporting – the Ministry of Economic Development’s Companies Office, Inland Revenue, Statistics New Zealand and ACC – as it is these areas that are likely to have the greatest opportunity for reducing compliance costs.

There will be a report back to Cabinet in December on detailed costs and benefits, along with a longer-term implementation plan.  If a decision is made to proceed it is expected standard business reporting across this cluster of agencies would be operational in March 2011, and extended to other government agencies after that.