Red tape, green lightPillar_1_704x468Two new submissions to the federal Productivity Commission offer one clear message: to unlock productivity and innovation, we must reduce the regulatory drag on high-performing professional services.

The Commission’s 5 Pillar Productivity Agenda is exploring reforms across key areas like technology, the energy transition, the care economy, skills and economic dynamism.

“We support the work of the Productivity Commission to find policy levers that incentivise investment, enhance productivity and foster entrepreneurship and innovation,” says Kristy Eulenstein, Head of Policy and Government Relations at Consult Australia.

Barriers to business

In January 2025, Australia’s Productivity Pitch crowdsourced 500-plus ideas to boost national productivity. More than a third of ideas (36%) were focused on “creating a dynamic and resilient economy”.
For this reason, Consult Australia’s submission to the Productivity Commission tackles the regulatory drag on business dynamism.

“Over time, we have seen regulations become more complex, duplicative and inconsistent. Our recommendations are about removing unnecessary barriers to boost business dynamism and productivity.”
Among the recommendations are changes to the Australian Consumer Law to ensure misleading or deceptive conduct provisions protect consumers and small businesses, and maintain explicit exemptions for qualified architects and engineers.

Consult Australia also calls on all governments to reduce regulation complexity and duplication, and to apply greater rigour to market analysis.

License to thrive

The second submission zeroes in on occupational licensing. It recommends better access to Australian Standards, greater international alignment and a more streamlined approach. A simple amendment to the Mutual Recognition Act 1992 (Cth) would allow engineers to work across state lines without bureaucratic hurdles or duplicate registration processes.

One Consult Australia member reported employing a full-time staff member, at $125,000 a year, solely to manage registration and accreditation requirements. “Fixing this would unlock an estimated $54 million in productivity gains across the sector,” Kristy says.

“Our members consistently experience productivity drains when engageing with government – both as a client and as a regulator. That’s why we’re calling for an explicit requirement on all governments to factor in small business impacts, market dynamics and competition effects when developing regulatory policy.”

Read both submissions on the Consult Australia website.

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