Article by Simon Benson, courtesy of The Australian
20.03.2025
A coalition of the nation’s peak business bodies has issued a manifesto of election demands ahead of next week’s federal budget, claiming the economy is being crippled by major delays in project approvals, uncompetitive taxes and excessive union influence over business operations.
The demands present a challenge to Peter Dutton to overhaul Labor’s industrial relations reforms if elected while delivering a rebuke to Labor for presiding over a red and green tape culture tying up economy building projects
The business bodies have called for reform or elimination of state-based payroll tax systems, investment incentives for research and development in the budget and a “single desk” project approval process by delegating federal environment law assessment to the states, to de-risk the economy from missing out on the next wave of investment.
Whichever party forms government after the May election, the business coalition has demanded balance be urgently restored to the industrial relations system following Labor’s reforms amid calls to restore competitiveness at a time of heightened global uncertainty.
With Labor unlikely to entertain the rollback of any of its industrial reforms, the business lobby demands will be seen as putting pressure on the Opposition Leader to liberalise the workforce.
The coalition of peak groups – the Business Council of Australia, the Australian Chamber of Commerce and Industry and the Minerals Council of Australia – said without major reform in these key areas, economic growth and investment would stagnate, leading to a worsening of the already diminished living standards crisis facing households.
The demands are based on the findings of a jointly funded research project, commissioned by the three industry lobby groups, which showed most Australians supported reforms to payroll tax, research and development and major project approvals.
There was also significant support in the community to reduce the power of unions.
The research, undertaken by Crosby Textor and which surveyed 4089 people to gauge the level of understanding in the community of policy areas affecting business, follows the release of modelling by the Australian Industry Group that showed gross operating margins had experienced their sharpest annual decline in more than 25 years.
Liberal leader Mr Dutton seized on the issue of delayed project while visiting Western Australia this week, vowing to fast-track the approval of the major gas project on the North West Shelf if the Coalition were elected.
Business Council chief executive Bran Black said the lengthy approval process for major projects was one of the most critical issues facing the economy and unless addressed, living standards would decline further and jobs would be at risk.
“We need an overhaul of the approval process for major projects in Australia in a way that benefits both business and the environment, because it’s clear we need to get more energy projects, more housing and more critical minerals projects off the ground, at the same time as providing more certain protections for our environment,” he said.
“Both the government and opposition must commit to creating a better approval process at this upcoming election. One of the outcomes businesses seek is accreditation for states to administer the federal approvals regime set out in the Environmental Protection and Biodiversity Conservation Act.
“This would mean a ‘single desk’ determined whether a project should proceed, removing multiple layers of bureaucracy and process timeframes.
“If we don’t address approvals, we will miss out on investment, economic growth and jobs and ultimately that will impact our living standards. We also need to see a plan to attract more investment to Australia and we think implementing better incentives to drive research and development activity is critical.”
The findings of the joint study found strong community support for reforms the business lobby was asking of government.
The findings, based on responses from a random sample of the community, showed 57 per cent net support for making it easier for major new projects to be approved and 63 per cent net support for providing R&D incentives for businesses.
More people than not – 47 per cent compared with 21 per cent – were supportive of reducing the influence of unions on business operations while there was 67 per cent net support for reducing payroll tax for small businesses.
The coalition of peak industry lobby groups represents small and medium-sized enterprise as well as big business.
“If we don’t fix this, Australia risks missing out on the next wave of investment – and with it, the jobs and economic growth that come from getting major projects off the ground,” said MCA chief executive Tania Constable.
“Australian businesses are among the most innovative, productive, and resilient in the world. They drive investment, create high-paying jobs, and underpin our national prosperity, but to stay competitive they need the right policy settings that encourage growth.
“Australians want to see job-creating projects move forward, not get caught in layers of red tape. Businesses looking to invest face an approvals process that drags on for years, creating uncertainty and driving up costs.
“Major investments in mining, energy and infrastructure are being held back by a system that is too slow, too complex, and riddled with overlapping regulations.
“We need to streamline these processes, cut duplication, and ensure decisions are made in a clear and timely manner.
“Australians also want fair and stable workplaces, not industrial uncertainty. Recent union-driven changes are undermining long-settled workplace arrangements, creating unnecessary disruption for businesses and workers alike.
“The research shows strong public support for reducing union influence on business operations.
“Yet current laws allow unions to force companies into bargaining without worker backing, adding complexity and deterring investment at a time when Australia needs to stay competitive.
“If the government wants sustained wage growth and long-term investment, it cannot be designing an IR system that increases costs and uncertainty, making both harder to achieve.”
ACCI chief executive Andrew McKellar said the results of the research “shows an understanding in the community about the importance of small and medium businesses and the need to address the impact of red tape and burdensome tax arrangements”.
“Taxes such as payroll taxes should be eliminated to free up small to medium-sized businesses and help grow the economy, which benefits the community,” he said.