What is the Australian Government's $780 million deregulation package?

The federal government is implementing 14 legislative reforms designed to reduce the "regulatory burden" on the financial sector by $780 million annually.

How does the increased covered bond cap affect Australian banks?

The reform plan includes lifting the current cap on banks' covered bond issuances, which allows financial institutions more flexibility in how they manage their balance sheets and funding.

What does "technology neutrality" mean for agencies like ASIC?

The government is pushing for "technology neutrality" to ensure that laws and regulations apply equally regardless of the technology used, such as allowing digital rather than paper-based communication with ASIC.

How will the budget update impact Australia’s GDP growth?

Treasurer Jim Chalmers expects a renewed National Competition Policy, developed with state and territory governments, to deliver a long-term GDP boost of $13 billion per year.

Why is the government cutting $37.8 billion from the NDIS?

The Treasurer announced a $37.8 billion reduction in projected National Disability Insurance Scheme (NDIS) spending over the forward estimates to ensure the program's long-term fiscal sustainability.

What is the current state of Australia’s gross debt and budget deficit?

Gross debt is projected to reach $982 billion by the end of this financial year, though the government intends to lower it annually for the next 11 years.

Australia slashes red tape in major budget reset

Written by Jon CuthbertPublished May. 12 2026Last Updated May. 12 2026

The federal government has unveiled a $780 million annual deregulation package aimed at stripping back the "regulatory burden" stifling the financial sector.

Treasurer Jim Chalmers framed the initiative as a cornerstone of the Commonwealth’s broader fiscal strategy, modernising business communications through electronic recordkeeping and increasing monetary thresholds for large-scale corporations.

Key pillars of the reform include streamlining climate-related financial disclosures and lifting the cap on banks’ covered bond issuances, alongside 14 distinct legislative changes designed to foster "technology neutrality" across agencies like ASIC and the Australian Small Business and Family Enterprise Ombudsman.

The administrative overhaul arrives as the centrepiece of a lean budget update, where Chalmers confirmed that annual spending growth has been throttled to just 1.5% through to 2030.

While the government anticipates a $13 billion GDP boost from a renewed National Competition Policy, the immediate focus remains on aggressive "budget repair".

To this end, the Treasurer announced a staggering $37.8 billion reduction in projected NDIS spending over the forward estimates to ensure the scheme’s long-term sustainability.

Despite these heavy cuts, a combined $5 billion has been carved out for the new "Thriving Kids" programme and non-NDIS disability supports.

With gross debt projected to hit $982 billion this financial year, the Treasury maintains that these disciplined savings will pave the way for a stronger medium-term position and future tax relief.