The Australian Chamber of Commerce and Industry (ACCI) has labelled the 2026 Federal Budget a 'missed opportunity' for meaningful reform, criticising the government for failing to address key economic challenges.
ACCI's Assessment
In a statement released on Tuesday, ACCI chief executive Andrew McKellar said the budget lacked the structural changes needed to boost productivity and competitiveness. 'While there were some welcome measures, overall this was a missed opportunity to drive the reform agenda that Australian businesses desperately need,' McKellar said.
The business group pointed to the absence of significant tax reform, including cuts to company tax rates and simplification of the GST system. It also expressed disappointment at the lack of progress on red tape reduction and industrial relations reform.
Specific Concerns
- Tax reform: ACCI called for a reduction in the company tax rate to 25% and a broadening of the GST base to include financial services and fresh food.
- Regulation: The chamber urged the government to cut compliance costs by streamlining environmental approvals and reducing reporting burdens.
- Industrial relations: ACCI criticised the lack of measures to improve workplace flexibility and address skills shortages.
McKellar noted that while infrastructure spending and digital investment were positive, they were not enough to offset the lack of broader reform. 'We need a comprehensive plan to make Australia more competitive, not just piecemeal announcements,' he said.
Government Response
Treasurer Jim Chalmers defended the budget, arguing it struck the right balance between supporting households and investing in the future. 'This budget delivers cost-of-living relief, invests in clean energy and skills, and maintains fiscal discipline,' Chalmers said.
However, ACCI remains unconvinced. The chamber warned that without bold reform, Australia risks falling behind other advanced economies in attracting investment and creating jobs.
The budget, handed down on Tuesday evening, includes measures such as increased funding for Medicare, childcare subsidies, and renewable energy projects. But for the business community, it falls short of the transformation needed to secure long-term prosperity.
