This report provides a blueprint for the Australian Government to cut red tape and out-of-date regulation in order to reduce costs for consumers and businesses, boost productivity and get more homes built faster. It finds that Australia has a more than $110 billion red-tape burden, which is holding back investment and major projects critical to Australia’s economic success.

Productivity is not just an issue for the future but an urgent issue for today. It is critical for sustainably reducing inflation, driving real wages growth and tackling Australia's budget challenges. The starting point is a change in mindset across the board. This means recognising both the urgency of Australia's competitiveness and productivity challenges. It also means focusing on the key drivers of productivity – investment and innovation.

Key findings

• Productivity growth last decade was the worst in 60 years.
• The inextricable link between productivity and incomes also meant last decade was the slowest decade for incomes growth in 60 years.
• The expected outlook for productivity growth in the Commonwealth Budget is even more dire this decade. 

Key recommendations

• Simplify compliance and licencing regimes across the country, particularly for tradespeople critical to building more homes.
• Streamline trading hours and practices across the country.
• Align planning and environmental assessments between federal and state governments to create faster investment outcomes for housing and energy projects.
• Ensure laws are fit for the future digital economy to allow a faster rollout of artificial intelligence (AI) and cyber innovation.
• Create better regulation frameworks, including KPIs for regulators to reduce red tape and compliance costs.
• Modernise Australia's international trading systems and significantly reduce burdensome and outdated tariffs and trade barriers.