The Business Council says the plan, by Treasurer Jim Chalmers, to develop more reform options to lift Australia’s productivity, particularly with the states and territories, is a good first step.

BCA Chief Executive Bran Black said the Government and the Productivity Commission need to work with businesses to develop reform options.

“The BCA has recommended a National Reform Fund be created to incentivise state governments to undertake reforms which drive productivity and better outcomes for the economy, consumers and businesses.  

“This new Fund should be looked at in the Productivity Review and could help deliver faster and better planning approvals for housing, folding payroll tax arrangements into one national system, fixing ineffective rules and regulation, and replacing stamp duty with land tax.

“If we are going to address cost of living issues and support the transition to net zero, we need to have the right settings for business growth and investment.

“We need to see more detail from the Government, but this is a step in the right direction in addressing Australia’s flagging competitiveness.”