South Australia has been named the top-performing state for business for the fourth year running in the Business Council of Australia 2026 Regulation Rumble report, while Victoria finished at the bottom of the ranking.
The annual study reviews states and territories against regulatory criteria up to mid-2026, covering payroll taxes, planning systems, property charges, and licensing requirements.
South Australia earned high marks for its payroll-tax framework and exemptions on commercial-property stamp duty, contributing to its leading score.
Andrew Kay, CEO of the South Australian Business Chamber, stated that the BCA report assesses selected tax and regulatory measures, but it does not measure business profitability, customer demand, confidence, or the mounting costs businesses face every day.
Kay added that rising operational expenses, such as energy, fuel, and compliance pressures, keep confidence below neutral despite the favorable tax setting.
He noted that firms with a $2 million payroll incur the highest effective payroll-tax rate in the nation, and this raises concerns about whether the system works as well as possible.
Victoria remained the lowest-ranked jurisdiction, hampered by higher taxes, regulatory obstacles, and planning reforms that have yet to be implemented.
New South Wales improved its planning score, helped by harmonized payroll-tax rulings and a streamlined online portal.
The report also highlighted regional strengths, such as the Australian Capital Territory’s lack of insurance duties, Queensland’s low workers-compensation premiums, and Tasmania’s short statutory planning timeframes.
Business Council chief Bran Black said regulatory burdens continue to consume time and capital that could otherwise support growth and job creation.
Black warned that unnecessary red tape lifts costs for firms, which eventually pass through to consumers buying everyday items like coffee or groceries.
Business Leaders Question Operational Ease Despite High Ranking
Although South Australia received strong scores for its payroll-tax framework and commercial-property stamp-duty relief, business advocates say a top ranking does not guarantee smooth operations for local owners.
Black noted that regulations alone cannot drive growth and that excessive red tape raises commercial costs, which consumers ultimately bear. He said streamlining procedures would lower expenses and improve outcomes for Australians.
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