BVH Policy Statement 2025 2026
POLICY STATEMENT 2025 - 2026
Business Victor Harbor (BVH) functions as an independent chamber of commerce, working closely with local businesses, business groups, the City of Victor Harbor, neighbouring councils, industry associations, government bodies, and key industry organisations. Our mission is to lead initiatives that drive economic development, fostering a thriving, resilient, and dynamic business environment.
BVH's strategic direction focuses on unifying efforts to attract, grow, and retain businesses. We advocate for local operational interests and cultivate a collaborative environment to support business growth and sustainability.
As a business chamber, BVH is a powerful advocate for the business community. We diligently represent our members' interests, serving as their collective voice in dialogues with local, regional, and national government entities. Our advocacy and policy initiatives aim to create a favourable regional business climate, address regulatory challenges, and promote economic advancement.
At the core of BVH’s strategic vision is the recognition of Victor Harbor as the business heart of the greater
Fleurieu region.
From an economic perspective, this Policy Statement supports, advocates, and represents the greater Fleurieu region, that covers the LGA areas of Victor Harbor, Alexandrina, Yankalilla, Kangaroo Island and the southern part of Onkaparinga.
The Fleurieu region proudly offers a unique 'paddock to plate' experience, encompassing wine, tourism, and exceptional liveability. Additionally, the region provides 'cradle to grave' services—from childcare to aged care—setting it apart from most other South Australian regions.
The following data, as of December 2022, illustrates the economic impacts of businesses across the greater Fleurieu region encompassing the LGAs of City of Victor Harbor, District Council of Yankalilla, Kangaroo Island, and Alexandrina Council:
• Economic Output: $5.1Bi
• Employment: 17,029 peopleii
• Largest industry sector for economic input: Agriculture, Forestry & Fishing at $873.7M
• Largest industry employer: Health Care & Social Assistance with 2,752 jobs
• Wages paid to employees: $1.1B - Health Care & Social Assistance industry pays the most in wages and salaries at $247M iii
• Exports: $1.2B - Agriculture, Forestry & Fishing industry contributes the most for regional exports at
$490Miv
• Imports: $1.1B - Manufacturing industry spends the most on regional imports at $234Mv
• Value Added: $2.5B Regional Imports - Rental, Hiring & Real Estate Services industry is the largest value-added contributor at $455.5Mvi
• Gross Regional Product (GRP): $2.087Bvii
o $1.280 billion is contributed by Alexandrina LGA
o $806.957 million is contributed by Victor Harbor LGA
o $290.109 million is contributed by Yankalilla LGA
o $361.639 million is contributed by Kangaroo Island LGA
• Population circa 2023/24
o 30,000 Alexandrina LGA
o 16,100 Victor Harbor LGA
o 5,800Yankalilla LGA
o 4,900 Kangaroo Island LGA
Challenges impacting business growth and confidence
Business growth and confidence across the region are being impacted by several challenges, including limited access to accommodation, housing affordability issues, rising living costs, employment shortages, a lack of suitably qualified staff, reduced discretionary spending, stagnant wages, and high household debt.
Operating costs are rising amidst flat to buoyant sales, squeezing business margins. Increased expenses in rent, utilities, Council rates, product and service supplies, fuel, wages, payroll tax, superannuation, industrial relations, WHS practices, regulatory requirements, and national wage rises are putting significant pressure on locally owned businesses.
South Australia faces exceedingly high energy costs, with non-contestable energy expenses making up to 47% of energy bills due to infrastructure supply and maintenance. These high costs severely impact local business communities and overall confidence.
Additionally, the government's ban on single-use plastic products is creating supply, sales, and transition challenges for many businesses in the region. BVH is actively championing collaborative efforts and projects to support the business community in adapting to plastic reductions and promoting environmental sustainability, including initiatives in the circular economy.
BVH’s 2024/2026 Policy Statement is prioritised under the following 5 key categories:
1. Regulatory
2. Environmental Sustainability
3. Doing Business - Challenges
4. Industrial Relations
5. Regional ‘Driven & Grown’
“BVH mandates non-negotiable local community consultation for all future developments and calls on governments to prioritise planning and infrastructure frameworks, ensuring local representation and automatic inclusion of local businesses in development consultations”
“BVH urges Local and State Governments to conduct strategic and community benefit analyses of current infrastructure (including access to a robust local public transport system), ensuring active involvement and consultation of local community and business representatives in future infrastructure planning”
“BVH calls for a review of the WHS system to simplify compliance and increase flexibility for all South Australian industry sectors”
“BVH believes the Single-use and Other Plastic Products (Waste Avoidance) Bill 2020 requires close monitoring and attention”
“We urge the Government to provide ongoing support for recycling and environmental sustainability, as these have significant impacts on current business models”
“BVH calls for a review of Waste Levy costs”
“BVH urges the SA Government to support regional business owners by taking action to reduce both contestable and non-contestable power costs and improve reliability”
“BVH believes that reducing the costs of doing business, including increasing the Payroll Tax threshold from $1.5m to $3m is essential in stimulating business confidence, create employment opportunities, encourage more sustainable reinvestment and growth in the region's local economy”
“BVH urgently seeks a review of the RTWSA scheme’s 2-year claim period and its impact on insurance claims against businesses”
“BVH believes training funding should be linked to career development, employment, and up-skilling; seeks SA Government consideration of Payroll Tax/RTWSA reductions for
businesses hiring trainees or apprentices; requests support for an 'Employer’s Guarantee' post-training; and advocates for establishing vocational education structures for regional, industry-specific training programs”
“BVH urges the State Government to lobby federally for a review of industrial relations, focusing on simplifying the complexities of awards and their impact on SA businesses. BVH believes that Local and State Governments should prioritise policies that drive local production and manufacturing of goods and services within the region”
POLICY 1 Regulatory
ISSUE/RATIONALE
1. PLANNING
BVH mandates non-negotiable local community consultation for all future developments and calls on governments to prioritise planning and infrastructure frameworks, ensuring local representation and automatic inclusion of local businesses in development consultations.
BVH urges State Government to recognise the Greater Fleurieu as a regional SA identity, with Victor Harbor as the ‘heart’ of this region and not be swept up as part of the Greater Area of Adelaide.
2. INFRASTRUCTURE
BVH urges Local and State Governments to conduct strategic and community benefit analysis of current infrastructure, ensuring active involvement and consultation of local community and business representatives in future infrastructure planning, including public transport access, impacting local businesses.
BVH has observed that certain development applications have led to downturns in main street businesses and the splitting of business districts, particularly in town centres like Victor Harbor. For example, the opening of the Victor Central Business precinct and the Bunnings/Aldi Hayborough development caused significant declines in traffic and closures in Victor Harbor’s CBD.
Across South Australia’s regional districts, 'out of centre' retail developments have often gutted main streets, draining the community shopping areas of their vitality. Examples include Mt Gambier, Renmark, Port Augusta, and Whyalla. These developments simply shift retail traffic away from main streets, leading to business closures unless there is a substantial population increase.
BVH recommends adopting a performance-based approach for any proposed 'out of centre' business development. Such developments must unequivocally demonstrate no detrimental impact on existing business centres.
While BVH supports development that clearly benefits economic and community prosperity, any major development impacting businesses must include robust community consultation.
Over the past three decades in South Australia, industrial and rural lands have often been re- zoned to residential or commercial with little or no consultation, leading to negative consequences for businesses, communities, and infrastructure. Examples include Buckland Park and Riverlea Estate, with inadequate infrastructure e.g. access roads, sewer, water, etc.
There are several developments planned for the region with some already underway including the areas of Victor Harbor, Goolwa and Strathalbyn and BVH’s business community does not want to witness those planning and development challenges being experienced in Mt Barker.
Any new proposed business or retail centre, especially 'out of centre' developments, must include a comprehensive retail/business catchment analysis and a 'net community benefit test.' A consistent and transparent 'Sequential Test' should be applied, based on:
- Strategic fit
- Net community benefit
- Place and infrastructure quality
BVH believes that the region’s infrastructure planning must support and address the future needs of a thriving community and a strong, growing business sector, including the supply chains throughout the region.
Businesses and their supply chains need fewer impediments to delivering, servicing, and moving goods and products across the region.
BVH acknowledges that freight costs within the region are at a premium for local businesses. Rising costs are exacerbated by the poor condition of freight corridors and road networks, especially between major towns and south of the line from Myponga/Willunga to Strathalbyn.
The growth of the Fleurieu region’s southern coastal communities is straining infrastructure, including public transport access, impacting both businesses and the community’s ability to travel and access services.
3. NATIONAL & STATE WHS REVIEW
BVH calls for a review of the WHS system to simplify compliance and increase flexibility for all South Australian industry sectors.
4. SINGLE -USE PLASTIC; ENVIRONMENTAL WASTE MANAGEMENT & CIRCULAR ECONOMY
BVH believes the Single-use and Other Plastic Products (Waste Avoidance) Bill 2020 requires close monitoring and attention.
We urge the Government to provide ongoing support for recycling and environmental sustainability, as these have significant impacts on current business models.
BVH calls for a review of Waste Levy costs.
5. ENERGY
BVH urges the SA Government to support regional business owners by taking action to reduce both contestable and non-contestable power costs and improve reliability. Work Health & Safety compliance remains overly complex and prescriptive, adding significant
costs and placing unnecessary stress and potential litigation risks on business owners. BVH collaborates with SafeWorkSA to support business owners and members as needed.
WHS legislative and regulatory information must be simplified and provided to regional businesses in an easily understood format, with improved education. Recent regulatory changes have impacted all businesses, including micro and home businesses.
The reinforced and strengthened legislative requirements effective from 25 December 2023, which include training and mental health as part of psychological workplace compliance, highlight the importance of maintaining a healthy workforce. This is now a critical need for all business owners.
2 Environmental Sustainability
State legislation has introduced significant changes and costs for food and beverage businesses, as well as other suppliers and manufacturers, with a critical focus on recycling and sustainability.
The Single-use and Other Plastic Products (Waste Avoidance) Bill 2020, introduced on 30 April 2020, will have major effects on food and beverage businesses, with the second and third stage regulations taking effect in 2024 and 2025.
BVH has raised concerns about the lack of clear messaging and guidance on upcoming transitions, which has led to confusion among business owners.
BVH has actively participated in consultations on this matter, partnering with Green Industries SA and engaging in 'going circular' projects with LEAP grants.
Effective transition to the prohibition of certain plastics requires clear communication and appropriate timeframes for business owners to adapt.
Consistency in the approach of local government Environment Health Officers (EHOs) regarding banned plastic products is crucial, as EHOs, via the EPA, are responsible for business compliance.
The waste levy is a significant cost to businesses and the broader community. BVH seeks a review of the levy to establish best practices and achieve optimal outcomes.
3 Doing Business - Challenges
Regional business owners face significant ancillary charges on their electricity bills due to policy decisions involving the energy mix and interconnector base-loads. These non-contestable costs, passed on by energy retailers, are beyond the control of business owners.
BVH believes SA's energy market and infrastructure remain vulnerable and unreliable.
Ancillary charges can constitute up to 47% of total energy bills for some businesses. Reliable and affordable energy is essential for regional businesses, and losses from blackouts, infrastructure upgrades, and system unreliability are unacceptable and irrecoverable.
6. AFFORDABLE HOUSING;
ADDITIONAL CHILDCARE SERVICES; RENTAL ACCOMMODATION & PUBLIC TRANSPORT FOR WORKERS
BVH is concerned with the lack of affordable housing; childcare facilities and high cost of rental accommodation, which stresses regional local employment availability and increases labour costs.
BVH urges both State & Federal Governments to consider reviewing and/or increasing incentivisation programs that focus on regional child care facilities and housing building/accommodation and rental initiatives, including recognising all of the Greater Fleurieu as regional SA
7. COSTS & IMPEDIMENTS OF DOING
BUSINESS
BVH believes that reducing the costs and impediments of doing business is essential to stimulate business confidence, create employment opportunities, and encourage reinvestment in the region's local economy.
BVH seeks Govt to consider the current Payroll Tax threshold be lifted from $1.5m to $3m
8. RETURN TO WORK (WORKCOVER)
BVH urgently seeks a review of the RTWSA scheme’s 2-year claim period and its impact on insurance claims against businesses.
Regional businesses are challenged with the impacts of sourcing labour due to the lack of affordable housing, lack of childcare facilities and little or no public transport for workers travel.
Businesses accessing labour, together with potential staff being able to access affordable housing/rental accommodation, child care and travel to work, directly impacts the local & broader employment market and availability, increasing considerable costs to a business’s bottom line, whilst also increasing the costs of local products, services and supply.
Understanding that all regional SA economies are experiencing unprecedented high costs of living and doing business, both State & Federal governments must be able to facilitate programs and incentivisation initiatives that inspire and energise both community and local business growth.
Whilst Victor Harbor, including its surrounding regions that make up the Greater Fleurieu boast tremendous tourism, agri-tourism, paddock-to-plate destinations and the place to visit, live, work, play and enjoy a wonderful lifestyle, local businesses and their supply chains that deliver the intricate eco-system from cradle-to-grave must be supported recognising the unique differentiation to metro-Adelaide.
Affordable housing and rental accommodation, plus child care facilities and reasonable public transport for workers is now more than ever at a crisis point for the region, which stifles our local businesses growth and the ‘knock-on’ effect as a ‘liveable’ destination is now at a major cross-road.
The cost of doing business in South Australia has been continually increasing. State taxes and changes remain too high and need reduction. Payroll tax has risen due to national wage increases, necessitating higher thresholds or lower rates.
Payroll tax has been increasing due to national wages increases and the threshold levels need to be lifted or rates decreased. BVH advocates for the current minimum $1.5m annual wages threshold to be lifted to $3m. Annual National Minimum Wages Rates have increased by 17.2% over the past 4 years.
Implications of increasing SA Water costs due to water augmentation charges from 1st July 2024 will increase by 3.5%pa, including developers having to pay from $2.5k for infill developments to increase to $10k by 2027-28.
With many businesses already under stress due to continual increased costs of doing business and the current ‘cost of living’ having impacts across the region, it is expected that small/medium sized businesses will be forced to save costs or close.
Under the current Return to Work scheme, businesses face potential claims against their Business Liability insurance for workplace injuries exceeding two years, once employees exit the scheme. After the two-year period, employees are supposed to find work or transition to Federal Government support schemes. However, a trend has emerged where employees, after two years in the scheme, lodge litigation against employers for loss of income or earning capacity, driving up business insurance costs.
BVH urgently seeks a review of the impact of this behaviour on the Return to Work scheme, insurance offerings, and the business community.
9. FUNDING FOR TRAINING
BVH believes training funding should be linked to career development, employment, and up-skilling; seeks SA Government consideration of Payroll Tax/RTWSA exemptions for businesses hiring trainees or apprentices; requests support for an 'Employer’s Guarantee' post-training; and advocates for establishing vocational education structures for regional, industry-specific training programs.
10. INDUSTRIAL RELATIONS IMPACTING ON SA BUSINESSES
Training and skills investment are critical to business operations and must target job participation, improve skills and capabilities, and be delivered locally to strengthen career pathways. Note: There are currently significant skills shortages in retail & hospitality.
BVH strongly advocates for employer-incentivised industry-based traineeships and apprenticeships. These are essential for creating new jobs, up-skilling, and developing trades from entry-level to management, meeting local industry demands.
BVH recognises the current demand in health services (including childcare to aged care), professional services, construction, and the visitor economy (tourism, hospitality, and retail). Additionally, skills and training programs in the 'paddock-to-plate' agriculture industry are in high demand.
BVH seeks the delivery of industry-specific training regionally to save operational costs and support local reinvestment. We encourage collaborative regional training delivery models through public (TAFE) and private (RTOs) partnerships, ensuring local trainees and apprentices receive all training locally.
BVH believes government policy should lead training programs matched to local job demand and supply, proposing to re-instate Employers Incentive Schemes for retail/hospitality and consideration of an ‘Employers Guarantee’ for at least 12 months of employment post-training. This initiative will strengthen the screening of training candidates and improve completion rates.
Training should include rapidly changing technologies, WHS safe workplace environments, healthy workers, mental health programs, business management, cyber security, technology skills, waste management, recycling, and environmental sustainability.
BVH advocates for the development and implementation of an industry-led Fleurieu Regional Workforce Development Plan.
4 Industrial Relations
BVH urges the State Government to lobby federally for a review of industrial relations, focusing on simplifying the complexities of awards and their impact on SA businesses.
Over the past decade, numerous allegations of underpayment of wages have been reported.
Businesses often cite the complexities of award systems as a significant contributor to unintended errors in employee payments.
Owners strive to pay staff correctly, but the intricate regulations often lead to unintentional mistakes.
Beyond wages, businesses face increasing industrial relations challenges, including evolving compliance requirements that particularly burden small businesses with additional red tape.
The industrial system is overly complex for business owners and requires radical simplification to achieve the best outcomes for both employers and employees.
A simpler, user-friendly award system benefits all parties.
11. SA REGIONAL MANUFACTURING, PRODUCTION & SERVICES
BVH believes that Local and State Governments should prioritise policies that drive local production & manufacturing of goods and services within the region. 5 Local ‘Driven & Grown Business’
The COVID experience highlighted the critical need for self-reliance on local goods for South Australian consumers.
Fostering local supply chains and services attracts investment, enhances regional procurement, sovereignty of the region and stimulates growth.
A focus on South Australian manufacturing and regional capabilities is essential.
This requires a long-term plan to boost competitiveness through cheaper energy, skilled labour, training, lower taxes, and improved infrastructure.
BVH supports ‘buy local’ initiatives, including Brand SA, and advocates for strategic messaging
and marketing to attract, invest in, and retain regional business opportunities.
Footnotes
i Economic Output Data Overview: The output data represents the gross revenue generated by businesses in each industry sector within a defined region, also known as total sales or total income. Sources: ABS 2021 Census Place of Work Employment (Scaled), ABS 2021/2022 National Input Output Tables, and ABS June 2023 Gross State Product.
ii Employment Data Overview (including Largest industry employer and industry sector by input) : The employment data shows the number of people employed in various industry sectors across defined regions, using place of work data without converting to full-time equivalents, and includes full-time, part-time, and casual positions. Sources: ABS 2021 Census Place of Work Employment (Scaled), ABS 2021/2022 National Input Output Tables, and ABS June 2023 Gross State Product.
iii Wages & Salaries: includes all entitlements earned by employees from employers for services rendered, covering cash, in-kind benefits (e.g., food, accommodation, motor vehicles), and employer social contributions like superannuation and workers' compensation. Sources: Australian Bureau of Statistics Cat. 5209.0.55.001, ABS 2021 Census Place of Work Employment (Scaled), ABS 2021/2022 National Input Output Tables, and ABS June 2023 Gross State Product.
iv Regional exports data: represents the value of goods and services generated by businesses within the region and sold outside it, bringing money into the region. This includes both domestic and international exports. For example, motels earning from visitors outside the region count as exports. Sources: ABS 2021 Census Place of Work Employment (Scaled), ABS 2021/2022 National Input Output Tables, and ABS June 2023 Gross State Product.
v Regional imports data: represents the value of goods and services brought into the region by local businesses, resulting in an outflow of money. This includes both domestic and international imports, such as a local business outsourcing accountancy services to another region. Sources: ABS 2021 Census Place of Work Employment (Scaled), ABS 2021/2022 National Input Output Tables, and ABS June 2023 Gross State Product.
vi Value-added: data represents the additional economic value generated by each industry sector in a region. It is calculated by subtracting local and regional import expenditures from the industry's output or by adding wages and salaries, gross operating surplus, and taxes on products and production. This data is crucial for calculating Gross Regional Product. Sources: ABS 2021 Census Place of Work Employment (Scaled), ABS 2021/2022 National Input Output Tables, and ABS June 2023 Gross State Product.
vii Gross Regional Product (GRP) measures the net wealth generated by a region. It can be calculated using the incomes approach, which adds all incomes earned by individuals, firms, and governments, or the expenditure approach, which sums all final expenditures, excluding intermediate expenditures to avoid double counting. These methods align with those used for Gross State Product (GSP) and Gross Domestic Product (GDP). Sources: ABS 2021 Census Place of Work Employment (Scaled), ABS 2021/2022 National Input Output Tables, and ABS June 2023 Gross State Product.
