Cutting red tape ‘will be a feature of the budget’: Treasurer
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The news: Treasurer Jim Chalmers has confirmed that slashing red tape will be “an important focus of the government and in the budget”.
His comments follow calls from a collective of 30 groups representing businesses and universities for the federal government, as well as states and territories, to cut unnecessary regulation by 25% by 2030.
The context: The Alliance of Industry Associations, in its 2026-27 pre-budget submission released on Sunday evening, asked the government to increase the envelope and accelerate the use of the National Productivity Fund to simplify and harmonise state-based taxes and regulations and eliminate duplication.
The submission suggested the Single Front Door for inbound investment should be prioritised and accelerated, data retention requirement reforms should be prioritised, and said the government should appoint a Minister for Better Regulation. And it wants the Corporations Act to be simplified.
The submission further asks for a reform of incentives to encourage industry to invest more, such as by reviewing the definition of eligible R&D tax incentive expenditure, abolishing the spending threshold or lifting it to $250 million, increasing the small business threshold or allowing accelerated depreciation of R&A capital expenditures. It has suggested low-interest, stage-specific loans for SMEs and a concessional tax regime to boost onshore innovation.
The collective wants the government to “position Australia as a leading jurisdiction for AI and emerging technologies and skills through pro-investment, outcomes-based regulatory frameworks” and develop a national strategy to boost investment competitiveness.
The numbers: The alliance, citing Australian Institute of Company Directors research, warned that the cost of federal regulatory compliance has grown over the past decade to 5.8% of GDP, from 4.2%.
What they said: Chalmers said that cutting red tape where possible and making it easier for business to grow “will be a feature of the budget”.
“One of the best ways to address the long term productivity challenge that we inherited in our economy is to reduce red tape,” he said.
Finance Minister Katy Gallagher said business groups “are right to focus on better regulation and reducing the regulatory burden”.
“As we finish the budget process we are focused on practical ways to streamline processes, reduce duplication and reduce the regulatory burden, while maintaining the safeguards Australians expect,” she said.
Business Council of Australia CEO Bran Black said cutting duplication in red tape could help alleviate price pressures at a critical time for the economy amid the Middle East war.
“With global volatility already pushing up prices, cutting that duplication would help bring down costs for Australian households and businesses,” he said.
The sources: Treasurer media statement, Alliance of Industry Associations release
