Australia's small business leaders returned to Sydney on 5 August 2026 for Day 2 of the COSBOA National Small Business Summit, with the conversation turning to regulation, AI, productivity, tax reform and the policy settings needed to support small businesses to invest and grow.
Emceed by Ashleigh Raper, Channel 10 Network Political Editor, Day 2 brought together political leaders, senior regulators, independent parliamentarians, business leaders and policy experts for a packed program focused on practical reform and the opportunities ahead for Australia's small business sector.
Day Two opened with remarks from Rebecca Warren, Executive General Manager, Small Business at Commonwealth Bank, who reflected on the resilience of Australia's small businesses and the findings of COSBOA's latest Small Business Perspectives Report, developed in partnership with CommBank. This year's report focused specifically on regional, rural and remote Australia, highlighting pressures including rising operating costs, declining profits and workforce shortages.
Gurmesh Singh MP, Leader of the NSW Nationals, NSW Shadow Minister for Small Business and Shadow Minister for Regional NSW, reflected on the pressures facing regional businesses, pointing to rising operating costs, supply chain challenges and declining confidence. Referencing COSBOA's Small Business Perspectives Report, he noted that 77% of regional business owners had experienced stress or anxiety in the past year.
Mr Singh said governments must move beyond recognising these challenges and focus on practical solutions. He outlined the Opposition's commitment to delivering a more competitive payroll tax regime by raising and indexing thresholds, which he said would remove around 4,000 businesses from paying payroll tax.
He also highlighted measures aimed at improving energy security and driving jobs and growth, concluding that "Governments need to get out of the way where they can, and give our businesses the settings they need to thrive."
Rules, Regulations and Red Tape: The Year Ahead for Small Business
Facilitated by Matthew Addison, COSBOA Chair, this panel brought together leaders from Australia's key regulatory agencies to discuss how regulation can become simpler, clearer and more practical for small businesses.
Sarah Court, ASIC, launched ASIC's refreshed Small Business Strategy, which aims to simplify regulatory obligations through clearer guidance, improved engagement and easier access to information. She also highlighted plans to improve ASIC's business registers and reduce scams targeting small businesses.
Anna Booth, Fair Work Ombudsman, outlined the agency's focus on reducing compliance friction through clearer guidance, stronger education and more accessible digital resources. She also noted that payroll calculations continue to account for a significant proportion of workplace contraventions.
Rob Heferen, Australian Taxation Office, outlined the ATO's focus on simplifying the tax experience through greater digital capability and pre-filled information. He noted that while 91% of small businesses pay their tax on time, the ATO is working to better understand and support those who do not.
Update from the Australian Human Rights Commission
Dr Anna Cody, Sex Discrimination Commissioner at the Australian Human Rights Commission, spoke about the importance of creating workplaces where people feel safe, respected and supported.
She encouraged small businesses to foster respectful workplace cultures through clear expectations, regular conversations with staff and practical prevention measures.
Dr Cody also announced the launch of the Commission's new Small Business Hub, bringing together free guides, fact sheets, practical tools and resources for both employers and employees. The Hub includes guidance on preventing and responding to workplace sexual harassment, understanding legal obligations and building respectful workplace cultures through practical, everyday actions.
AI Changing the Game for Small Business – Real Stories, Real Results
AI was one of the dominant themes across the two-day Summit, and this session distilled the practical lessons emerging from those discussions. Led by Angad Soin, Managing Director ANZ and Global Chief Strategy Officer at Xero, speakers agreed that successful AI adoption starts with solving a real business problem, implementing strong guardrails and keeping people at the centre of decision-making.
Lindy Hua, CO2LAB, shared how for her business AI has become the "company's second brain", helping a lean team automate routine tasks, capturing organisational knowledge and supporting decision-making. She encouraged businesses to build a basic understanding of AI while recognising that subject matter expertise and human judgement remain essential.
Fleur Anderson, 89 Degrees East, spoke about using AI to provide personalised business support to female entrepreneurs, particularly those in regional and remote communities. She highlighted the importance of building trust through strong guardrails and ensuring the technology provides practical support.
Chris Tate, Pablo & Rusty's Coffee Roasters, demonstrated how AI can deliver immediate productivity gains by solving specific operational problems, from food costing to rostering. He encouraged businesses to start with one practical use case, remain curious and apply human insight before acting on AI-generated recommendations.
Ann-Mary Rajanayagam, Alderon, encouraged businesses to experiment with AI while establishing clear governance from the outset. She recommended defining where AI should and should not be used, maintaining accountability for AI-generated work and seeking trusted advice as technology continues to evolve.
Productivity Commission Briefing
Danielle Wood, Productivity Commission Chair,presented the Commission's latest insights on Australia's productivity challenges, noting that annual labour productivity growth in recent years has fallen to around 0.3%, less than a quarter of the 60-year average.
Ms Wood identified three priorities for reform: reducing unnecessary regulation, strengthening National Competition Policy and accelerating the adoption of innovation and technology. She said businesses continue to spend too much time navigating complex regulation and called for clearer government leadership, better regulatory design and stronger incentives for regulators to support economic growth.
Artificial intelligence also featured prominently, with Ms Wood estimating AI and robotics could lift Australia's labour productivity by around 4% over the next decade if businesses adopt the technology. She noted that while individual use of AI is high, Australian businesses continue to lag behind many international counterparts, highlighting greater access to workplace training as another important driver of long-term productivity.
Meet the Independents: Changing the Conversation
This session brought together independent parliamentarians to discuss their priorities for Australia's small business sector and the growing role of the crossbench in shaping policy. Facilitated by Ashleigh Raper, the discussion centred on reducing red tape, improving procurement, supporting investment and ensuring small businesses have a stronger voice in policy development.
Dai Le MP called for greater support for local businesses through government procurement, arguing more contracts should be awarded to Australian businesses. She also highlighted the need to reduce unnecessary regulation and make compliance simpler for small business owners.
Senator David Pocock emphasised the importance of research and development, and greater consultation with small businesses when developing regulation. He also called for a consistent national definition of a small business and easier access to government procurement opportunities.
Zali Steggall OAM MP encouraged governments to go further on measures such as the instant asset write-off while continuing to address insurance affordability and regulatory complexity. She also stressed the importance of engaging industry earlier in the policy development process.
Allegra Spender MP highlighted tax reform, access to capital and government procurement as priorities for growing Australia's small business sector. She also called for faster government decision-making and simpler regulatory settings to help businesses invest, innovate and expand.
Address from Australian Competition & Consumer Commission
Mick Keogh, Australian Competition and Consumer Commission (ACCC) Deputy Chair, spoke about the role of regulation in supporting fair competition, arguing that well-designed regulation can give businesses greater certainty, improve confidence in markets and protect those doing the right thing. While acknowledging that constant regulatory change can create unnecessary burden, he cautioned that "blanket calls for the removal of red tape can be counterproductive."
Mr Keogh outlined several regulatory reforms affecting small businesses, including new protections against unfair trading practices, strengthened unfair contract term laws, changes to card payment surcharging from October 2026, reforms to the Food and Grocery Code, and stronger protections for franchisees. He said the focus should be on "right-sized regulation" that creates fairer markets and gives small businesses the confidence to compete and invest.
Is the Tax System Working for Business?
Facilitated by Skye Cappuccio, COSBOA CEO, this panel explored whether Australia's tax system is supporting business investment, productivity and long-term economic growth. While each panellist approached the issue from a different perspective, all agreed the current system has become increasingly complex and that meaningful reform requires a more holistic approach.
Bran Black, Business Council of Australia, argued tax reform should be guided by three principles: fiscal sustainability, intergenerational equity and stronger business investment. He called for a broader national conversation about Australia's tax system, saying reform should improve competitiveness and support long-term economic growth rather than focus solely on raising revenue.
Elinor Kasapidis, CPA Australia, said a well-designed tax system should be simple, efficient and equitable. She argued businesses need to be involved earlier in policy development and warned that increasing complexity and uncertainty can discourage innovation, investment and entrepreneurship.
Matthew Addison, COSBOA, highlighted the growing administrative burden facing small businesses, arguing decades of incremental changes have made the tax system unnecessarily complex. He called for simpler tax settings that allow small business owners to spend less time navigating compliance and more time investing in and growing their businesses.
Summit Reflections and the Road Ahead for Small Business
Closing the formal program, Lynda McAlary-Smith, Australian Small Business and Family Enterprise Ombudsman, Ben Kearney, Australian Lottery and Newsagents' Association (ALNA), Skye Cappuccio, COSBOA, and Matthew Addison, COSBOA, reflected on the key themes emerging over the two days and the priorities for the year ahead.
Lynda McAlary-Smith called for policy to be designed with small businesses at its centre, arguing regulation should be simpler and more practical for the 97% of Australian businesses that are small businesses. She also highlighted the opportunity for AI to make the "business of running a business" easier while encouraging business owners to continue engaging with policymakers.
Ben Kearney reflected on the significant opportunities available to small businesses, particularly through AI adoption and productivity reform. While acknowledging the challenges facing the sector, he encouraged businesses to embrace innovation and called for continued discussion on tax reform and long-term economic growth.
Skye Cappuccio said AI presents one of the greatest opportunities to improve small business productivity but warned that businesses risk falling behind if they fail to adopt new technologies. She also reinforced the need for simpler regulation and a stronger focus on practical solutions that help small businesses remain competitive.
In his closing address, Matthew Addison, COSBOA Chair, reflected on the broad consensus that had emerged across the Summit, despite differing political and industry perspectives. He challenged delegates to turn discussion into action, encouraging everyone to leave with one practical action, one new collaboration and one fresh idea to develop.
Click below to read about Day 1: Productivity, innovation and the future of small business.
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