Key facts
- Nearly 30 Australian business groups are urging governments to cut regulatory costs by 25% by 2030.
- The Alliance of Industry Associations released its 2026-27 Pre-Budget Submission detailing the call.
- Federal regulatory compliance costs the Australian economy $160 billion annually, according to an AICD Mandala report.
- Businesses argue that overlapping and inconsistent regulations increase complexity, delay projects, and raise costs.
- The UK has implemented reforms to reduce regulatory costs, and the EU has a 25% red tape reduction target for small businesses.
Nearly 30 Australian business groups, including the Alliance of Industry Associations, are calling for a 25% reduction in regulatory costs by 2030. The groups argue that excessive and duplicated regulations across federal, state, and local governments are increasing costs for businesses and consumers, particularly amid rising global economic pressures.
The Alliance's 2026-27 Pre-Budget Submission highlights that federal regulatory compliance costs the Australian economy approximately $160 billion annually, representing almost 6% of GDP. This figure is more than the combined spending on Medicare and school education by the Federal Government. The submission emphasizes that overlapping and inconsistent regulations create unnecessary complexity, delay projects, and inflate costs.
Skye Cappuccio, CEO of the Council of Small Business Organisations Australia, stated that red tape consumes valuable time for small businesses, diverting focus from customers, staff, and growth. Mike Guerin, CEO of the National Farmers' Federation, suggested that reduced regulation would allow Australian agriculture to be more competitive and responsive to global shocks. Bran Black, Chief Executive of the Business Council of Australia, provided examples of the extensive licensing and permit requirements faced by businesses, such as a café owner in Victoria needing 37 approvals and a tradie on the Gold Coast requiring numerous permits.
The Alliance warns that these costs are ultimately borne by businesses, workers, and families. They are urging governments to commit to the 25% reduction target, starting with immediate cost reductions, an economy-wide regulatory stocktake, and improved inter-jurisdictional coordination. The submission notes that the United Kingdom has implemented similar reforms, and the European Union has set a 25% red tape reduction target for small businesses.