The Federal Government has reportedly abandoned its business registry modernisation efforts due to cost overruns. 

The government has halted the Modernising Business Registers (MBR) program, originally intended to streamline business operations and reduce costs. 

This decision comes in response to cost overruns, crippling delays, and a gross underestimation of the project's complexity.

Initially budgeted at $480.5 million by the Coalition government, the MBR program aimed to revamp and consolidate various registries operated by the Australian Securities and Investments Commission (ASIC) into a single user-friendly digital platform. 

The program was designed to simplify interactions between businesses and the government, cutting through the bureaucratic red tape and reducing fees compared to the outdated systems.

However, Assistant Treasurer and Minister for Financial Services, Stephen Jones, recently revealed that the program, as outlined, could potentially cost $2.8 billion, far exceeding the initial estimate. 

Originally slated for completion by the 2023-2024 financial year, the MBR program could now drag on until 2029, according to an independent review.

Damon Rees, former CEO of Service NSW, was appointed by the Albanese government to investigate the program earlier this year. 

Despite acknowledging the urgent need to modernise Australia's business registry systems, Rees recommended halting the program, stating that the economic benefits simply did not justify the astronomical additional expenditure.

While some elements of the program, such as the Director ID system, have been implemented, core business registry updates are still pending. 

The review identified significant issues, including a severe underestimation of the technical and legal complexities involved, misalignment of efforts with expected benefits, and a lack of a clear delivery plan.

Plans to employ up to 500 full-time workers, costing $12 million per month, further drained allocated funds and exacerbated delays.

The decision to stop the MBR program disappointed CPA Australia, which had advocated for digital registry system improvements. 

Despite this setback, the need for business registry reform remains critical. 

Experts say simplifying Australia's registry systems could reduce costs for businesses, enhance transparency, and improve interactions between businesses, government entities, and consumers. 

It could also aid in tackling issues like phoenixing and fraud while empowering consumers to make informed decisions about the organisations they engage with.