Governance Institute calls for strategic reforms in pre-budget submission

Governance Institute is calling on the Federal Government to prioritise productivity-enhancing reforms, regulatory efficiency and measures to support businesses in an increasingly complex economic landscape. In the 2025-26 Pre-Budget Submission, we have outlined key recommendations aimed at fostering sustainable economic growth, strengthening governance frameworks and reducing regulatory burdens. 

With economic growth projected to remain sluggish at 1.75% in 2024-25, Australian businesses are facing rising operational costs, ongoing inflationary pressures, and a record number of business insolvencies. Our submission calls for decisive action to support corporate Australia in navigating these challenges, ensuring that businesses can thrive and continue contributing to the broader economy. 

Corporate law reform remains a crucial component of our proposed strategy. The current legislative framework is outdated and overly complex, making it difficult for businesses and regulators to operate efficiently. We have recommended the establishment of an independent corporate law reform body to drive much-needed legislative improvements and ensure that Australia’s regulatory environment supports, rather than hinders, economic progress. 

One of our key recommendations is for a Regulatory Efficiency Taskforce to streamline administrative and regulatory processes. The growing complexity of compliance requirements has placed a significant burden on organisations, diverting valuable resources from innovation and growth. Cutting red tape and simplifying corporate regulations is essential to maintaining Australia’s economic competitiveness. 

Governance Institute has also called for urgent reform of Australia’s whistleblower protection framework. Current laws are fragmented and difficult to navigate, creating uncertainty for organisations and discouraging individuals from speaking out about misconduct. We are advocating for the creation of an independent Whistleblower Protection Authority to provide clear and consistent protection across both the public and private sectors. 

Investment in digital and AI-driven economic transformation is another priority area highlighted in our submission. Australia must position itself as a global leader in AI development and cybersecurity, ensuring that businesses can leverage technological advancements to enhance productivity and resilience. We recommend continued collaboration between government and industry to develop a strategic AI roadmap and workforce upskilling initiatives. 

Sustainability and responsible corporate governance also feature prominently in our submission. We urge the government to develop a sustainable economic growth roadmap that supports businesses in transitioning to a low-emission, low-risk operating environment. In line with global trends, Australia must strengthen its commitment to nature-related financial disclosures and environmental risk management to attract international investment and maintain global competitiveness. 

We have also called for the development of a comprehensive Australian services economy export strategy. With our economy heavily reliant on bulk commodity exports, greater diversification into high-value services sectors is essential to future-proofing Australia’s economic prosperity. 

As the voice for governance and risk management professionals, we remain committed to advocating for policies that support our members and the broader business community.