Reducing barriers to business dynamism

Submission Date: 28 August 2026

The Law Council of Australia provided a submission to respond to the Productivity Commission’s call for submissions on reducing barriers to business dynamism in Australia.

Annexure A of the Productivity Commission’s call for submissions sets the scope of the Commission’s inquiry, providing that:

The Commission is to investigate regulatory barriers to business dynamism and recommend actionable reform options that increase productivity, the entry of new firms and the expansion of existing firms. In particular, the Commission should

1. Identify and evaluate key processes and barriers to business entry, expansion and exit, including but not limited to:
   1. regulatory and administrative burdens, including access to capital markets, business registration and industry-specific licensing.
   2. the design, operation and integrity of corporate and personal insolvency frameworks, encompassing consideration of:
      1. whether there are net benefits of greater harmonisation, particularly for small business owners who may need to navigate both systems simultaneously, and
      2. whether they support the efficient allocation of resources across the economy in a manner that preserves system integrity and deters corporate misconduct.
2. Examine the economic impacts of these processes and barriers, including effects on productivity, innovation, investment, and employment.

In undertaking the inquiry, the Commission should conduct a review of the operation of Schedules 1, 3 and 4 of the Treasury Laws Amendment (Combatting Illegal Phoenixing) Act 2020.

For the avoidance of doubt, the tax, workplace relations, and mergers frameworks are not intended to be the focus of this inquiry.¹

In responding to these matters, this submission is divided into two distinct parts:

• Part A of this submission reflects the views of the Law Council’s Business Law Section and responds to each of the above issues in turn.
• Part B of this submission reflects input provided by the Queensland Law Society and is focused on the interconnected nature of small business activity, personal and household financial wellbeing and regulatory environments.

^{1 Productivity Commission, Reducing barriers to business dynamism in Australia: Call for submissions (May 2026), 7-8.}

Last Updated on 01/09/2026

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• Submissions Financial Services Taxation Corporations Law Insolvency and Reconstruction

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