A coalition of almost 30 leading Australian business industry groups is pushing for sweeping regulatory reform ahead of the federal government’s upcoming budget, warning that crippling red tape currently costs the national economy $160 billion annually and is pushing struggling businesses to the breaking point.
Leading the coalition’s pre-budget submission, Business Council of Australia chief executive Bran Black told reporters that businesses of all sizes, just like household consumers, are grappling with mounting cost pressures amid global economic uncertainty. He laid out the startling example of overburdened licensing requirements that illustrate the scope of the problem: cafes in New South Wales must secure 25 separate permits just to operate and serve a basic cup of coffee, while Victorian food service businesses are forced to obtain 37 distinct licences to open their doors.
“We’re seeing that there are extraordinary costs that businesses are incurring right across the economy, and it doesn’t matter if you’re in farming or in retail or in small business, you’re seeing those challenges,” Black said.
Black is calling on the federal government to adopt an official national target to cut unnecessary red tape by 25% by 2030, a goal aligned with ongoing regulatory reform efforts across European nations that have struggled with their own bureaucratic bloat. He emphasized that the timing for reform is critical, as global economic volatility driven by ongoing conflicts such as the crisis in the Middle East has amplified existing cost pressures for Australian businesses.
Wes Lambert, director of the Council of Small Business Organisations Australia (COSBA), echoed Black’s urgency, noting that small operators across the country are “drowning” under overlapping bureaucratic requirements that show no sign of easing despite government claims of progress. Lambert cited research from the Australian Institute of Company Directors, which confirms that overlapping rules and regulations from local, state and federal levels of government combine to create the $160 billion annual drag on Australian business output.
Black added that the upcoming May federal budget represents a make-or-break opportunity to address longstanding complaints about regulatory burden, a demand the business community has raised for years but that has grown more urgent amid global market instability.
In response to the coalition’s proposal, Finance Minister Katy Gallagher confirmed that the current government plans to prioritize targeted regulatory reform in the upcoming budget, but rejected calls for broad, across-the-board cuts. “One of the things about regulatory reform is the government’s keen to do something where it makes sense, where it improves outcomes, where it delivers better regulation,” Gallagher told ABC Radio on Monday. “It’s not just a ‘cut all regulation and see how it goes’, so we’re working with their ideas as well as ideas across the government.”