South Australia has once again been crowned the best place to do business, topping the Business Council’s Regulation Rumble report rankings for the third consecutive year.
The 2025 rankings show South Australia continued to set the national benchmark for having the most competitive payroll tax settings, planning system and licensing requirements compared to any other state or territory.
Regulation Rumble ranks states and territories based on planning systems, payroll taxes, property taxes and charges, retail trading hours, workers’ compensation premiums, duties on insurance and licences and requirements to do business. These areas are assessed over the 12 months up until mid-2025.
The report shows Victoria was the least competitive jurisdiction in which to do business and has the most room for improvement. This is due to regulatory and tax handbrakes that are holding back its economy.
Business Council Chief Executive Bran Black said states and territories should be in a race to the top to have the best settings, as a strong business sector will drive investment and productivity, and raise living standards.
“This report shines a light on what’s working across Australia, and it’s about encouraging healthy competition between jurisdictions to raise living standards by increasing business investment,” Mr Black said.
“South Australia is leading the nation and shows us that cutting unnecessary red tape and designing efficient regulations is not just good for business — it’s good for workers and communities.
“Disappointingly, Victoria continues to have the most work to do, with some of the nation’s highest tax rates and regulatory requirements making it the least attractive state in which to do business.
“The success of Victoria matters, and practical reforms to payroll tax, property taxes, and business licensing would deliver a big boost to the state’s ability to win investment.”
However, the BCA does commend the Victorian State Government for recent planning reforms, which will assist in speeding up approvals and delivering more homes.
Mr Black noted there had been improvements in NSW, with recent legislative changes being considered that would assist in expediting the approvals process, which is needed for the delivery of new developments, including more affordable homes.
The timing of these recent actions in NSW renders them outside the scope of the report’s analysis for 2025.
“NSW has shown that it’s ready for reform, especially around planning and housing supply, which is needed to deliver opportunity across the state,” Mr Black said.
The report also highlights that the Australian Capital Territory and the Northern Territory had the least restrictive trading hours.
“Christmas is approaching and states like Queensland and South Australia could get more bang for buck from their retail sectors if they allowed businesses to open for longer and when it suits them,” Mr Black said.