Joint industry bodies outline 4 priority reform areas as roundtable looms

As the economic reform roundtable kicks off, reducing red tape, improved project planning, boosted investment and productive tax reform are among the top four priorities for Australia’s business and accounting bodies.

In a submission to the roundtable, an alliance of 27 groups joined together to push for four main “asks” that would be beneficial for the Australian business, education and investment communities.

Groups such as the Business Council of Australia, Chartered Accountants ANZ, Australian Chamber of Commerce and Industry, CPA Australia, Corporate Tax Association, and the Council of Small Business Organisations Australia were among the 27 groups included within the submission pushing for “productivity solutions to improve living standards for all Australians”.

The submission said the “joint group of industry associations” believed the roundtable was an opportunity to lift productivity, boost living standards and build long-term economic resilience.

“Productivity growth over the past decade was the weakest in six decades. It is clear that the economy isn’t working for Australians like it used to. We know that improving productivity is essential to attracting investment, lifting real wages, growing jobs, and ensuring more opportunity for all Australians,” the bodies said.

“Our economic rule book is out of date. If we don’t fix it, not only will Australians struggle to get ahead in life, but future generations are at risk of missing out on the quality of life we enjoy today.”

From the four reform priority areas, it was proposed that investment and innovation be boosted by reformed incentives and funding models around research and development (R&D), reinvigoration of national infrastructure for R&D collaboration, improved global position in AI usage, and a developed national strategy to boost investment competitiveness.

“This matters to every Australian. It shapes the jobs they and their children will have, the technologies their families will rely on, and the country’s abilities to stay secure and competitive,” the bodies said.

“Without greater investment in innovation, Australia risks falling behind, with fewer high-quality jobs, slower wage growth, and less influence over its own future.”

The submission also suggested that red tape could be reduced through better regulation by a regulatory stocktake and commitment to a 25 per cent reduction in the regulatory burden by 2023.

According to the submission, this could also be achieved by reduced regulatory overreach uncertainty and duplication, and an embedded focus in government decision-making and regulatory culture.

The joint bodies noted that cutting red tape meant “working smarter and focusing on the thing that really counts” as fewer delays and less duplication reduced the cost of doing business.

“For Australians, it’s the difference between waiting months or days for a service, and it ensures growth isn’t shocked by unnecessary or outdated processes that haven’t kept up with the modern world.”

The bodies also doubled down on their ask for “kickstarting comprehensive tax reform” with the appointment of a range of stakeholders for a three-month review of the tax system.

They noted that comprehensive tax reform would encourage investment and economic growth based on the nature of tax to fund welfare payments, community services, and public goods.

In addition to this, it was said that taxes influence nearly all decisions made by individuals and businesses, however some discourage individuals and businesses from creating value and being productive.

Finally, the joint bodies proposed that planning and major project approvals be improved by reforming the overarching framework for environmental and planning approvals, coordinating and unifying federal, state and local planning processes, and creating a national framework for streamlined data sharing.

“The challenge is to make sure we’re working smarter and focusing on the things that really count.”