The Federal Government has unveiled an ambitious productivity and economic reform package in the 2026–27 Budget aimed at reversing Australia’s weakest productivity growth in 60 years. Framed around 15 major reform areas, the package seeks to reduce compliance costs by $10.2 billion annually and lift long-run GDP by around $13 billion per year through National Competition Policy reforms.

Key measures include tax incentives to encourage investment and innovation, permanent extension of the $20,000 instant asset write-off, faster environmental and planning approvals, harmonisation of standards and licensing across states, and major efforts to streamline regulation and reduce red tape. Of particular relevance to VCA members are commitments to measures that align with VCA's submission to the 2025 Productivity Commission Inquiry: simplify building regulations, establish nationally harmonised construction standards, improve recognition of international standards, and make mandatory Australian Standards freely available.

The package also includes significant investment in AI, research and development, energy market reform, housing infrastructure, and advanced manufacturing. The Government says the reforms will improve business competitiveness, accelerate construction activity, strengthen supply chains, and support innovation across the economy.

For the PVC industry and broader building products sector, the reforms signal a strong focus on reducing regulatory complexity, improving market efficiency, and encouraging investment in manufacturing, infrastructure and housing delivery.

Access the 2026 Budget Fact Sheet here.