CPA Australia has urged the federal government to use the 2026–27 Budget to cut regulatory complexity, boost productivity and bolster Australia’s long-term economic competitiveness.

In its pre-Budget submission, the accounting body outlined six main reform priorities. These include easing regulatory pressure and boosting productivity, strengthening public finances and international competitiveness through broad tax reform, and refining tax and superannuation settings.

It also urged the government to promote environmental, social and governance (ESG) and climate-related disclosures, support small and medium-sized enterprises (SMEs) and not-for-profits, and measures to attract, develop and retain skilled workers.

CPA Australia Business Investment and International lead Gavan Ord said the country is facing a turning point and argued that minor, isolated changes will not be enough to address rising financial pressures.

Ord said: “Australia’s productivity growth has stalled, the regulatory burden has increased and inflation remains problematic.

“The May Budget must turn the announcements from last year’s Productivity Roundtable into concrete reforms that make it easier to do business, attract investment and build long-term economic resilience.

“We are drowning businesses in red tape and then wondering why productivity is flat. Australia has a productivity problem, not a motivation problem. Business is willing – it is the system that is getting in the way.”

Ord urged Treasurer Jim Chalmers to commit to a full-scale rethink of the tax system and provide a clear road map for reform.

“Australia’s over-reliance on income taxes undermines productivity, discourages investment and weakens our international competitiveness,” he said.

“Intergenerational equity matters but tinkering around the edges of the tax system won’t deliver it. Without a whole-of-system approach, today’s quick fixes simply become tomorrow’s burden for younger Australians and future taxpayers.

“Proposals such as the net cashflow tax (NCFT) would increase complexity at a time when Australia desperately needs a simpler, more competitive tax system to drive productivity growth. The NCFT does none of these.”

The submission points to operational changes aimed at quickly cutting compliance costs and reducing uncertainty.

“If the rules are too complex, business owners spend more time complying than growing. Businesses need certainty and simplicity. These reforms would free up time and resources for investment, growth and job creation,” Ord said.

“CPA members consistently report that the volume and complexity of regulation continue to increase. While individual regulations may be well-designed, the cumulative regulatory burden can overwhelm businesses, especially SMEs.”