NECA condemns increase in red tape after Budget announcement

The Australian electrical industry body National Electrical and Communications Association (NECA) has condemned initiatives outlined in the 2011 Budget that will cause contractors to be tied up in even more red tape.

It was announced that there will be a new requirement for businesses in the building and construction industry to report to the Australian Taxation Office (ATO) annually on payments made to other contractors in the industry, along with the other contractor's ABN. "This new requirement will unnecessarily place administrative burdens on the electrical industry," said NECA chief executive officer, James Tinslay.

"Electrical contractors already have massive reporting requirements for taxation and electrical safety purposes without this new process. The government should be focused on cutting red tape to assist business owners increase productivity and not on introducing initiatives that will force many electrical contractors to spend more time on reporting," said Tinslay. "NECA calls on the government to consult with industry before placing further administrative burdens on electrical contractors."

NECA represents over 5000 electrical contracting businesses in Australia.