Productivity Commission – Cutting Red Tape for Contractors

The Federal Productivity Commission (PC) has released its interim reports across the Five Pillars of Productivity is inquiring into in effort to get Australia’s productivity moving again. Of these, MEA responded to three key areas:

Creating a More Dynamic and Resilient Economy
Building a skilled and adaptable workforce
Investing in cheaper, cleaner energy and the net zero transformation

You can click the links above to read our full positions, but here’s a snapshot of the big-ticket issues we’ve been tackling on behalf of members.

Tax Reform – Wins and Worries

The PC has recommended cutting the corporate tax rate to 20% for all companies under $1B. That’s a huge step forward, and one MEA pushed all parties to back at the 2025 elections. We’ve also called for this to extend to sole traders, not just companies.

But not all news is good. The PC has floated a new 5% Net Cash Flow (NCF) tax, which would scrap interest deductibility. For asset-light, labour-intensive businesses like electrical contractors, this model doesn’t stack up. Instead, MEA is pushing for a permanent Instant Asset Write-Off (up to $50,000) with interest deductibility retained, system that’s proven, practical, and SME-friendly.

Regulation – Keep it Right-Sized

Electrical contractors work under some of the strictest safety rules and rightly so because it’s a high risk industry! But adding unnecessary red tape that outweigh the benefits onto small family businesses only drives up costs and slows down jobs. MEA is pushing for regulation that keeps safety front and centre without drowning contractors in paperwork.

Some regulatory issues we’ve highlighted include:

• Security of Payment
• Definition of ‘electrical work’ in the construction of prefabricated homes
• Procurement requirements
• Pre-Qualification System
• Smart meter installations
• Small Business Fair Dismissal Code

Workforce Development – Supporting Workers, not just the Trainees

The industry’s skills shortage isn’t about young people wanting to be electricians – plenty do. The crunch is in training capacity. Small contractors train most apprentices but often lack the time, money, and supervisory resources to take on more. And, too often, advanced apprentices (i.e. 3rd and 4th year) and qualified electricians are poached by larger firms.

MEA has urged the PC to:

• Provide direct financial support for small businesses training apprentices
• Back supervisors with stronger incentives
• Invest in RTO capacity and digital training
• Grow commencements from underrepresented groups (women, mature-age entrants)

We’ve also cautioned against any moves to water down qualification standards through Occupational Entry Requirement (OER) reviews. Instead, we’ve called for a National Occupational Licensing framework – one licence, recognised everywhere – to standardise licencing national and to increase workforce mobility.

Consumer Energy Resources (CER) – Unlocked Untapped Potential

On energy, MEA has pushed for practical, low-cost measures to cut emissions while boosting resilience and investment. Big opportunities are still being underutilised regarding bi-directional EV chargers, private solar and small-scale batteries. These give households and businesses smarter, cheaper energy options without waiting for new transmission lines.

We’ve also called for reforms to strengthen product traceability and consistency across national standards, so contractors and consumers alike know they’re getting safe, compliant gear. And we’ve flagged the glaring gap in climate resilience tools, which currently overlook electrification data; a miss that could undermine planning for more frequent extreme weather.

The Bottom Line

MEA is on the front foot making sure your voice shapes the policies that shape your business for improving Australia’s productivity and increasing operational efficiency.