Australian businesses are calling on governments to cut red tape, with the Alliance of Industry Associations urging a 25 per cent reduction in regulatory costs.
The group warns that rising compliance burdens are weighing on productivity and intensifying pressure on operating conditions amid cost surges linked to the Middle East conflict.
Council of Small Business Organisations Australia (Cosboa) CEO Skye Cappuccio said the burden is already severe, with businesses spending hours to navigate compliance complexity
“That’s time taken away from customers, staff, and growth. Reducing duplication would ease costs and support stronger productivity growth across the economy.”
In its 2026–27 pre-budget submission, the alliance is urging all levels of government to reduce regulatory costs by 25 per cent by 2030 and take immediate steps to simplify compliance requirements.
The group cited a recent report by the Australian Institute of Company Directors and Mandala, which estimates federal regulatory compliance costs the economy around $160 billion annually, almost 6 per cent of GDP.
Businesses say overlapping and inconsistent rules across federal, state, and local governments are driving inefficiencies, delaying projects, and increasing costs.
Business Council of Australia CEO Bran Black pointed to the impact on day-to-day operations.
“In Victoria, a cafe owner needs 37 separate licences and approvals before they can pour the first coffee, while a tradie on the Gold Coast needs to pay hundreds of dollars in permits just to fix a tap over the NSW border,” he said.
“That kind of red tape adds cost, slows things down, and makes it harder to keep goods moving and shelves stocked. With global volatility already pushing up prices, cutting that duplication would help bring down costs for Australian households and businesses.”
The alliance also pointed to international examples, including the UK and EU, where governments have introduced similar targets to streamline regulation and support business growth.
“We are calling on governments to take immediate steps to reduce costs, undertake an economy-wide regulatory stocktake, and improve coordination across jurisdictions to remove duplication and inconsistency,” said the AIA.
This article was first published on Inside Small Business.
