Excessive red tape from the state government, councils and WorkCover are causing damage to small businesses in Australia.

According to Yasmin King, New South Wales' first small business commissioner, small business operators in the state are struggling to have their voices heard and are suffering under excessive regulation.

After six months into the job, Commissioner King was saying that her job is to ensure that small businesses are thriving rather than just surviving as she observed that small businesses in her state are struggling to compete with big players because it is being forced to pay excessive wages.