What Business, Welfare Groups Want in the Budget, and What an Economist Thinks They'll Get

Less red tape, a 25 percent gas levy, housing tax reform are among the things on a lengthy budget wish list from sector groups.

Australia Treasurer Jim Chalmers attends a press conference in parliament house in Canberra, Australia, on July 8, 2025. David Gray/AFP via Getty Images

While Treasurer Jim Chalmers is busy writing this year’s budget ahead of its delivery on May 12, there’s no shortage of advice from various lobby groups about what he should do.

The Business Council of Australia, representing 30 groups peak bodies covering small, medium, and large businesses and universities, has called for a review of existing regulations with a view to slashing red tape, plus an overhaul of planning rules and new strategies to boost research and development.

It wants to see a 25 percent reduction in unnecessary regulation by 2030, which it says is costing the Australian economy around $160 billion a year, almost 6 percent of GDP and more than the federal government spends on Medicare and school education combined.

“For small businesses, red tape often means hours each week spent navigating compliance complexity instead of running their business,” said Council of Small Business Organisations Australia CEO Skye Cappuccio.

“That’s time taken away from customers, staff and growth. Reducing duplication would ease costs and support stronger productivity growth across the economy.”

National Farmers’ Federation CEO Mike Guerin said the agriculture sector is set to contribute about $100 billion to the economy and supports 250,000 jobs.

“Imagine what could be achieved with smarter policy settings and less red tape,” he said in a statement.

“Cutting duplication would allow farmers to be more nimble in responding to global shocks, spending less time in the office and more out in the paddock, keeping Australian agriculture competitive on the global stage.”

Volunteer Sector Calls for Gas Export Levy to Fund Welfare

Meanwhile, the voluntary sector has weighed in on the issue of a tax on Australian gas exports, as well as calling for housing tax breaks.

A joint statement, signed by more than 50 organisations including the Australian Council of Social Services (ACOSS), Foodbank Australia, Jesuit Social Services, National Shelter, Single Mother Families Australia Inc, People with Disability Australia, and the Public Health Association of Australia, calls for a 25 percent levy on exported gas, along with a reform of capital gains tax and negative gearing.

The proposed levy is estimated to raise up to $17 billion annually, which the groups want to see spent on raising income support payments, such as JobSeeker, Youth Allowance and Parenting Payment, to at least $600 a week, substantially lifting the Remote Area Allowance and funding home energy upgrades to all social housing and private rentals.

“Australia is the world’s second largest gas exporter, yet governments collect taxes at far lower rates than other resource-rich nations like Qatar,” said ACOSS Chief Executive Cassandra Goldie.

“Halving the capital gains tax discount and ending negative gearing would generate an estimated $20 billion over the first four years and significantly more over time, while easing pressure on the housing market.”

The Epoch Times put the lobby groups’ wishlists to Robert Breunig, director of the Tax and Transfer Policy Institute at the Crawford School of Public Policy and national President of the Economic Society of Australia.

Removing red tape gets a tick. Pressure from the federal government on state governments to make building approvals easier is working, he says.

“We’re actually seeing quite a bit of new supply, particularly in Melbourne, but also in Sydney.”

But he says regulations that restrict where someone can work should also be abolished.

“We have really bad licensing in Australia,” he says. “If you’re a plumber in one state, you can’t be a plumber in another state. I mean, this is crazy. If you’re a plumber, you’re a plumber.”

Bruenig believes there is “quite a bit” of red tape Chalmers could cut.

“[But] the problem is, as soon as you say ‘cut red tape,’ people say, ‘Oh, you’re going to get rid of health and safety regulations for and childcare [centres].’

“No, that’s not what people are talking about. But making it easier to build a childcare centre is a good example, because there is a lot of silly regulation in childcare, to get rid of which would not endanger children at all.”

Despite an extensive campaign suggesting otherwise, Bruenig says, “We’re not giving it (gas) away. [However] I don’t think we’ve taxed our resources very efficiently or very well over the last 30 years.

“I think a bunch of the benefits of digging up all these resources and selling them overseas, more of them should have flowed to Australians. But we are going to get more corporate tax because of the higher gas prices. The PRRT [petroleum resource rent tax] is going to get some additional revenue. But I think having some kind of super profits tax on resources [is] a good idea, and we should be pursuing that.”

Chalmers, back in the country from his visit to Washington, has told reporters that the budget will contain a package of reforms.

“There’s more work to do on our options for tax reform in this budget. We have been really upfront for some time in saying that we do think that there is intergenerational unfairness in the tax system and in the housing market,” he said.

He also signalled some changes to the National Disability Insurance Scheme (NDIS), for which the government is trying to rein in cost increases to 5 percent per year.

“We all want to do the right thing here,” he said. “I’m a huge believer in the NDIS, and it’s one of the reasons that we can be proud of how we support each other in Australia. But in order to make sure that it is sustainable into the future, we have to deal with some of these escalating costs.”

The Epoch Times also approached the Australian Council of Trade Unions (ACTU) for their list of budget priorities, but a spokesperson said: “We’re not ready to talk budget just yet.”