ADIA is the peak business organisation representing manufacturers and suppliers of dental products. Our vision is for an industry that empowers oral health professionals to advance the health and wellbeing of all Australians...................... — ADIA Strategic Plan

Statistics — Australian dental industry red tape index

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Manufacturers and suppliers of dental products in Australia represent some of the most regulated businesses in the country, an environment that frustrates their ability to grow, create jobs and operate sustainably.

Governments of all political persuasions make commitments to reducing red tape and to assess the impact of such commitments, the Australian Dental Industry Association (ADIA) commissioned the Australian Dental Industry Red Tape Index.

Red tape in the dental industry —

The regulatory compliance burden, colloquially known as government red tape, faced by businesses in the Australian dental industry takes many forms. It includes the cost to business in understanding their legal obligations; processing and providing information to government; regulatory fees and charges incurred; costs associated with any delays in time to market, or changes to production processes; and development of products to meet Australian-only product design, performance and testing standards.

Sources of red tape for the dental industry —

At a national level agencies responsible for creating red tape include the: Australian Taxation Office (ATO); Australian Securities and Investments Commission (ASIC); National Industrial Chemicals Notification and Assessment Scheme (NICNAS); and the Therapeutic Goods Administraton (TGA). State / territory governments are also a considerable source of red tape for businesses in the dental industry and, for businesses operating nationally, a significant and necessary compliance often arises out of different regulatory requirements between jurisdictions.

Recognition by government and industry stakeholders —

Given that the ADIA membership manufacturers and / or supplies more than 95% of the products used by dental practices, the Australian Dental Industry Red Tape Index is widely recognised by government and industry stakeholders as a valuable barometer of the regulatory compliance burden not only on the dental industry, but also the broader medical technology sector.

The Australian Government has recognised the importance of red tape reduction as a necessary precondition to boost productivity across the nation. To this end, the Australian Government has attempted reforms that strike an appropriate balance between reducing the cost of regulation overall to support innovation and investment, and having necessary, appropriate regulation to protect health and community safety and the environment. This is where the Australian Dental Industry Red Tape Index plays an important role, it assists government assess its achievements in this area.

FY2016-17 Fourth Quarter Reading —
58.7 Indicating Sentiment That Red Tape Has Increased

The most recent survey to produce the longitudinal study of the dental industry's red tape compliance burden covers the fourth quarter of FY2016-17.

It produces an index reading of 58.7 which indicates that the amount of red tape faced by the business in the dental industry when, compared with the previous quarter, has increased. The jump from the previous quarter was nearly ten points.. [Read More]

The mathematical model used to produce the Australian Dental Industry Red Tape Index is common to many similar indicies produced by economists, government and financial institutions. An index level of 50 indicates that there is an exact balance between those businesses who responded that the regulatory compliance burden is increasing and those who replied that the regulatory compliance burden had declined. Thus, a level below 50 can generally be interpreted as meaning the regulatory compliance burden is falling, and conversely, a reading above 50 indicates the regulatory compliance burden is increasing.

The Australian Dental Industry Red Tape Index helps form the context for ADIA’s policy advocacy which is directed towards securing a regulatory framework for dental products based on a risk management approach designed to ensure public health and safety, while at the same time freeing industry from an unnecessary regulatory burden. This work is particularly important in the context of ADIA's support for small business.

Member Engagement —

ADIA provides leadership, strategy, advocacy and support. Our members set our agenda, fund our activities and directly benefit from the results. With respect to the Association's work to compile statistics that review the adverse impact of red tape on Australia's dental industry, the team in the ADIA national office receive advice and guidance from members serving on the ADIA-MSPC Market Statistics Projects Committee. and members receive updates at the quarterly ADIA State Branch Briefings

Further Information —

To keep up to date with how ADIA is working to ensure that the Australian Government budget supports the dental industry, subscribe to the Twitter feed @AusDental or follow us on Facebook at www.facebook.com/dental.industry. Alternatively, you can contact the Association via email at canberra@adia.org.au or by telephone on 1300 943 094.


This information is available for your use under a Creative Commons Attribution 3.0 Australia licence, with the exception of the ADIA logo, other images and where otherwise stated.

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