Productivity Commission Flags Regulatory Thickets
An interim report on business dynamism calls for simpler regulation and clearer government support for businesses at every stage.
Updated on Nov. 5, 2026 in Economic Policy
Live Poll
Do you think government regulation makes it harder to start or run a small business?
The Productivity Commission published an interim report on business dynamism, finding that the cumulative burden of regulatory requirements creates regulatory thickets in some industries. The inquiry was requested by Treasurer Jim Chalmers in May as part of the federal budget's productivity measures.
Why it matters
Business dynamism, the economy's capacity to renew itself through the entry, growth, restructuring and exit of businesses, is a key driver of productivity growth. The findings bear on how easily Australian businesses can start, expand, restructure or wind up.
The interim report was published on a Friday, with the business chamber citing five interest rate rises this year as added pressure. Full recommendations and modelling remain unpublished until the final report due in May 2027.
The players
Productivity Commission
The Australian government's independent research and advisory body, which conducts inquiries into economic and social policy issues.
Jim Chalmers
Australia's Treasurer, who requested the inquiry into business dynamism as part of the federal budget's productivity measures.
Australian Chamber of Commerce and Industry
The national peak body representing Australian businesses, which criticised the report for excluding taxation and workplace relations.
The details
The commission assessed barriers to business entry, growth, restructuring and exit, and found business leaders rarely knew where to look for government support or how to navigate the insolvency process. It urged the federal government to simplify regulation, clarify policies at all stages of business and adopt a 'tell-us-once' system to stop duplication of information.
Timeline
May: Treasurer Jim Chalmers requested the inquiry as part of the federal budget's productivity measures.
5 November 2026: The interim report was published on a Friday.
May 2027: The final report, with recommendations and economic modelling, is due.
Economic Policy Context
The inquiry was commissioned under the federal budget's productivity measures, extending the government's productivity agenda to the mechanics of business entry, growth, restructuring and exit. Its final report in May 2027 will determine whether the proposed regulatory simplification becomes policy.
If the proposed reforms proceed, businesses could face fewer overlapping regulatory requirements and clearer guidance on government support and insolvency processes. Owners would still need to monitor final recommendations, which are not yet published.
The takeaway
Business owners navigating regulation should track the final Productivity Commission report due in May 2027, as its recommendations may reshape how support and insolvency processes work. Clearer government guidance could reduce the time spent working out which rules apply.
What happens next
The Productivity Commission's final report, with full recommendations and economic modelling, is due in May 2027.
Further reading
Explore more on Australia Economic Policy for the broader regulatory and productivity debate.
Live Poll
Do you think government regulation makes it harder to start or run a small business?
