Smaller businesses are struggling to understand the regulatory environment, according to a survey by accounting software firm MYOB.
Of the 1000 business owners it questioned, nearly half said they found it difficult to understand how legislation applied to their business.
That had worsened under the National-led Government, compared to the 37% of businesses that struggled with legislation under the previous Labour-led Government.
MYOB general manager Julian Smith says the problem is largely due to poor communication between Government and businesses.
He says in many instances more than half of businesses were unaware of a particular initiative or change.