The Australian Federal Government held the Economic Reform Roundtable from 19 to 21 August 2025 to forge common ground on reforms aimed at boosting productivity, housing supply, tax fairness, workforce skills, and digital transformation through artificial intelligence (AI).

The Roundtable brought together representatives from government, business, unions, regulatory agencies, and experts to ensure that any reform package would be broadly supported and politically acceptable.

Key Issues Agreed at the Roundtable

A National Road-User Charge

Consensus emerged on introducing a national road-user charge to replace the declining fuel excise tax as electric vehicle (EV) usage grows. While no final model was agreed upon at the Roundtable, the matter will be progressed immediately, with an options paper to be presented to state and territory treasurers on 5 September 2025.

 Fast-Tracking Environmental Approvals

Participants agreed to accelerate environmental approvals under the Environment Protection and Biodiversity Conservation Act 1999 to address the backlog of more than 30,000 projects awaiting clearance. The Environment Minister is expected to lead reforms to be legislated before Christmas 2025.

Reforming the National Construction Code

Support was expressed for pausing updates to the National Construction Code during the housing accord until 1 July 2029, to cut red tape and speed up building supply. With over 2,000 pages, the Code will be streamlined to facilitate quicker construction. Modular and prefabricated housing also gained traction as efficient alternatives.

 Reducing Nuisance Tariffs and Simplifying Regulations

Leaders across sectors endorsed eliminating minor tariffs and cutting unnecessary red tape to boost business productivity and investment.

Currently, many small tariffs raise little revenue, increase compliance costs for business, and lift consumer prices. Among the 315 nuisance tariffs under review are a 5% tariff on imported air conditioners and a 5% tariff on cast iron pipes and tubes.

Tax Reform Focused on Intergenerational Fairness

While no detailed tax proposals were finalized, participants endorsed three guiding principles: fairness, simplicity, and sustainability. The goals include enhancing intergenerational equity, boosting investment incentives, and securing funding for essential services such as aged care and the NDIS.

 AI Regulation & Copyright Protection

A breakthrough was reached between unions and major technology companies (via the Tech Council of Australia) to develop a model that compensates creators when their content is used in AI training and searches.

The government will also conduct a comprehensive “gap analysis” to determine whether existing laws adequately cover AI-related risks—such as copyright, privacy, and employment—or whether a dedicated AI Act is needed.

Other AI initiatives discussed include: pausing broad, mandatory “guardrail” regulations, minimizing risks such as job losses while maximizing AI’s benefits, encouraging public sector use of AI to improve service delivery as well as supporting AI literacy and workforce reskilling.

Ten Immediate Reform Priorities

The Roundtable identified ten priority reform areas:1. Progressing towards a single national market, 2. Simplifying trade and abolishing tariffs, 3. Better regulation and reducing clutter, 4. Speeding up approvals in national priority areas, 5. Building more homes more quickly, 6.  Making AI a national priority, 7. Attracting capital and deploying investment, 8. Building a skilled and adaptable workforce, 9. Establishing a fairer intergenerational tax system and 10. Modernizing government services.

Skills & Training Reforms

Consensus was reached on the need to improve vocational education, streamline foreign credential recognition, and address skills shortages.

For example, nurses, engineers, and other migrants with overseas qualifications would be able to work in their fields more easily. The Roundtable also supported harmonising state licensing schemes to allow people to work across borders without unnecessary obstacles.

Concluding Remarks

The Roundtable succeeded in creating shared ownership of reforms across business, unions, and government. It was widely viewed as successful in building consensus on major issues such as a road-user charge for EVs, an overhaul of environmental law, faster housing approvals, tariff reduction, tax reform principles, AI regulation, and the ten immediate reform priorities.

These outcomes were more than just a “talkfest.” They give the government both political cover and momentum to legislate reforms that will strengthen productivity and support Australia’s long-term economic future.