Government’s role in producing a more dynamic and resilient economy can be achieved through taxation, spending or regulation. This interim report is the first of the five pillars of productivity inquiries. This inquiry into Creating a more dynamic and resilient economy recommends changes to the company tax system, and to the way government regulates, to spur more investment and productivity growth. Significant changes to corporate tax and regulation can have a substantial beneficial impact on productivity growth in Australia. This interim inquiry report shows how.

The report presents draft recommendations focused on two key policy reform areas:

1.  corporate tax reform to spur business investment
2. regulating to promote business dynamism.

The report finds that the ever-growing thicket of rules and regulations faced by business is significantly limiting productivity growth. It urges the Australian Government to make a clear public commitment to reducing regulatory burdens, and ensure new regulatory proposals face greater Cabinet and Parliamentary scrutiny.

Draft recommendations

• Pivot the corporate tax system to a more efficient mix of taxes.
• Lower the headline company tax rate to 20%.
• Introduce a net cashflow tax of 5%.
• Set a clear agenda for regulatory reform.
• Bolster high-level scrutiny of regulations.
• Enhance regulatory practice to deliver growth, competition and innovation.

The report includes extensive modelling of the proposed reforms.

Feedback and further information is invited from individuals, businesses, and organisations. Submissions closed Monday 15 September 2025.