iscover Government told to cut ‘unnecessary’ regulatory costs amid Middle East war
RegulationIn response to the ballooning cost of the conflict, 27 representative bodies across the business sector are demanding the government make efforts to help consumers stay afloat and the economy stabilise.
In a joint statement released on Monday (April 20), the Alliance of Industry Associations demanded an immediate cut to “red tape” and a 2030 commitment to reduce unnecessary regulation by 25 per cent.
According to a recent Mandala and Australian Institute of Company Directors (AICD) report, federal regulatory compliance is worth more than 5 per cent of the country’s GDP, exceeding the federal government's spending on both Medicare and education.
This $160 billion figure is more than double the cost compared to a decade ago.
Detailed in its 2026–2027 Pre-Budget Submission, the Alliance’s demands highlight the growing yet unnecessary burdens on the economy, especially where compliance-related duplication or fragmentation occurs.
As the statement outlined, regulatory inconsistencies across federal, state, and local governments not only complicate matters but also increase costs and delay projects.
Reducing such barriers would, according to Council of Small Business Organisations Australia CEO Skye Cappuccio, correspondingly reduce the “hours each week spent navigating compliance complexity” by small business owners.
Business Council of Australia chief executive Bran Black added: “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.”
And these pressures do not end here – consumers are merely the next link in the cost chain, often appearing as household bills.
CPA Australia CEO Chris Freeland said that excessive and poorly targeted regulation continues to be a major contributor to Australia’s weak productivity growth and declining international competitiveness.
“Too many businesses, particularly small and medium enterprises, are spending far too much time navigating complex reporting requirements, outdated processes and inconsistent rules,” said Freeland.
In a similar vein, CA ANZ CEO Ainslie van Onselen said when regulation is duplicated or overly complex, it adds cost without improving outcomes.
“Better coordination and a clearer focus on outcomes would lift productivity while preserving the protections Australians rely on,” said van Onselen.
The Alliance called on the government to take immediate steps to reduce costs by undertaking an economy-wide regulatory stocktake and improving co-ordination across jurisdictional compliance.
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Amelia is a Professional Services Journalist with Momentum Media, covering Lawyers Weekly, HR Leader, Accountants Daily and Accounting Times. She has a background in technical copy and arts and culture journalism, and enjoys screenwriting in her spare time.
