Economic reform must unlock small business and housing productivity

Today, the Mortgage & Finance Association of Australia (MFAA) welcomed Treasurer Jim Chalmers’ 10 economic reform priorities, emphasising the role of mortgage and finance brokers in economic productivity and the nation’s ongoing prosperity.

“It is pleasing to see the Federal Government open to reform. The Treasurer’s reform priorities set the right direction. Now we need detail and delivery,” said MFAA CEO Anja Pannek.

Many of the Economic Reform Roundtable consensus areas align with the MFAA’s recent submissions to the Productivity Commission’s five-pillar inquiry in advance of the ERR. 

In those submissions, the MFAA emphasised four priority areas:

•              Reducing barriers to digital adoption — enabling small businesses, such as mortgage and finance brokers, to use secure, interoperable tools like the Consumer Data Right (CDR) and Digital ID to transact safely and efficiently.

•              Optimising regulatory systems for sustainability — removing duplicative or outdated compliance obligations that increase costs without improving consumer outcomes.

•              Supporting small business growth — ensuring policy settings reflect the realities of the broking sector, where most businesses are small, operate with limited resources, and yet play a vital role in facilitating access to credit and competition in lending.

•              Tax reform — recognising payroll tax as a barrier to employment and investment and called for the instant asset-write off scheme to be made permanent to provide small businesses with the certainty they need to grow.

“The reform priorities announced by the Treasurer recognise small businesses need streamlined regulation and secure digital frameworks to thrive.   This is what our members are asking for – modern compliance settings, smarter tax reform, and secure tools such as CDR and Digital ID so they can deliver better outcomes for Australians,” Ms Pannek said.

“Brokers now support the majority of new home loans and a growing share of commercial lending. Their efficiency and resilience are critical to lifting housing supply and national productivity. Supporting brokers means supporting Australia’s economy.”

In its follow-up submission to the five-pillar inquiry, the MFAA also called for a national conversation on tax reform, including to broaden, increase and redistribute GST and incentivise states to remove or revise inefficient state taxes, including stamp duty and payroll tax.

Ms Pannek said she was pleased to see the Association’s voice has been heard and to see advancing tax reform on the agenda, saying “we see the removal of inefficient state taxes as a key enabler to improving outcomes for small broking businesses and access to home ownership”.

The Productivity Commission (PC) has issued interim reports to the five-pillar inquiry, calling for submissions to its recommendations, which are due on 15 September. Final reports from this Inquiry are due to be provided to the Government in December. These reports are expected to form the technical foundation for the Government and provide options and implementation details.

“In terms of next steps, we will continue to participate in the national productivity dialogue on behalf of our members and, importantly, seek their feedback as programs and proposals are presented by the Government,” Ms Pannek said.

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Background:

Consensus areas announced by the Treasurer are as follows:

•              Progress towards a single national market and simpler trade rules

•              Cutting clutter in regulation and speeding up approvals in priority sectors

•              Accelerating housing delivery, including reforming the National Construction Code and environmental approvals

•              Making artificial intelligence a national priority and addressing regulatory gaps

•              Attracting capital and deploying investment

•              Building a more skilled and adaptable workforce

•              Advancing tax reform to improve fairness, sustainability and simplicity

•              Modernising government services