PC chair Dani Wood backs ‘really compelling’ budget but market economists want more reform
Measures in the budget long championed by the Productivity Commission to slash red tape have been largely overlooked. They could be the first step to solving an intractable problem.
Productivity Commission chair Danielle Wood has had many of her wishes granted in Jim Chalmers’ 2026 budget but market economists are far more cynical, warning more significant reforms will be needed to ensure livings standards materially improve.
Wood told Capital Brief that the package is “a really compelling start” that picks up on what the government think tank has “been saying for the best part of 20 years”.
The package includes a promise to ease the regulatory burden by $10.2 billion by streamlining of environmental and medical approvals with AI, making access to regulatory standards free, the removal of 497 nuisance tariffs and legislative changes focused on the financial sector that could save businesses $780 million a year, among a slew of other measures.
Although some of the benefits could be realised immediately, such as plans to make access to regulatory standards free the productivity package is a “pretty sizeable list” that could take a decade to fully realise. This is particularly pronounced where state and territory buy-in is required, such as plans to harmonise payroll tax administration and the recognition of occupational licences.
