The Minerals Council of Australia (MCA) has backed a call by industry groups to slash red tape by 25 per cent, warning slow and complex approvals are undermining the nation’s competitiveness for mining investment.
The MCA said Australian mining projects are increasingly exposed to competition from other resource-rich economies offering lower regulatory costs and faster approvals.
“It’s time for change so Australia can stay in the lead on mining and deliver the minerals the world needs by developing more mines, more quickly,” MCA chief executive officer Tania Constable said.
Nearly 30 groups representing small, medium and large businesses, as well as universities, are calling on all levels of government to cut regulatory costs by 25 per cent amid rising global cost pressures linked to the Middle East conflict.
The push is being led by the Alliance of Industry Associations, which is urging governments to commit to a 25 per cent reduction in unnecessary regulation by 2030.
The call forms part of the Alliance’s 2026–27 Pre-Budget Submission, which highlights how overlapping and inconsistent regulation across federal, state and local governments is increasing complexity, delaying projects and driving up costs across the economy.
According to a recent Australian Institute of Company Directors Mandala report, federal regulatory compliance costs the economy around $160 billion annually – almost 6 per cent of GDP and more than combined Federal Government spending on Medicare and school education.
The Alliance said duplication and fragmentation across jurisdictions are inflating costs for both households and businesses.
Council of Small Business Organisations Australia chief executive officer Skye Cappuccio said red tape places a significant burden on small operators.
“For small businesses, red tape often means hours each week spent navigating compliance complexity instead of running their business,” Cappuccio said.
“That’s time taken away from customers, staff and growth. Reducing duplication would ease costs and support stronger productivity growth across the economy.”
The Alliance said these costs are ultimately passed on to consumers, workers and businesses, particularly at a time when global volatility is already pushing up prices.
While acknowledging the importance of effective regulation, the group warned that excessive complexity and duplication are weighing on economic growth.
The Alliance is calling for an economy-wide regulatory stocktake, improved coordination across jurisdictions and immediate steps to reduce compliance costs as part of the push to meet the 25 per cent reduction target by 2030.
Internationally, the United Kingdom has implemented reforms to reduce regulatory complexity, while the European Union has adopted a 25 per cent red tape reduction target –rising to 35 per cent for small businesses – as part of broader pro-growth policy settings.
The Alliance said coordinated reform would help improve productivity and living standards across Australia while ensuring businesses remain competitive on the global stage.