Two visions for reform have been put forward ahead of the budget's release in May: one in which red tape is slashed to make businesses more productive and the other in which gas exports are taxed and housing investor incentives are wound back.
In a pre-budget submission, a group of peak bodies led by the Business Council of Australia called for a stocktake of existing regulations, an overhaul of planning rules and new strategies to boost research and development.
Recent research from the Australian Institute of Company Directors and consulting firm Mandala found firms were spending almost $160 billion a year to comply with federal laws.
"That kind of red tape adds cost, slows things down and makes it harder to keep goods moving and shelves stocked," Business Council chief executive Bran Black said.
Finance Minister Katy Gallagher said the budget would have an important focus on reducing regulation and slashing compliance costs.
"Business groups are right to focus on better regulation and reducing the regulatory burden," she said.
"The budget will have more to say and we will continue to listen to the business community on practical ways to improve regulation."
Changes to recently introduced national environmental laws could make an immediate difference to supermarket prices, National Farmers Federation chief executive Mike Guerin told AAP.
"If you particularly talk to Queensland and north Australian graziers and growers, (the new laws are) having an enormous impact on them right now, that level of uncertainty and the regulations that follow," he said.
"It's a real moment for thinking boldly and bravely about reform."
Labor has flagged the 2026 budget will be finalised later than usual due to uncertainty caused by the war in the Middle East.
While businesses want less regulation, more than 50 advocacy groups are calling for a raft of reforms including a 25 per cent levy on exported natural gas - a measure fiercely opposed by the resources sector.
The policy would raise up to $17 billion every year, allowing the government to spend more on housing, energy efficiency upgrades and support payments including JobSeeker, the coalition of organisations said.
They also want the capital gains tax discount for investment properties reduced by half and negative gearing phased out over five years.
Labor is widely tipped to pare back incentives for property investors in the budget, although details of the planned changes have not been revealed.
The war in the Middle East had heightened the need for big reform to help the nation's most vulnerable, Australian Council of Social Service chief executive Cassandra Goldie said.
"The last thing we need to see is a budget that's going to be slashing spending," she said.
"We need to get serious progressive tax reform to the top of the list and then to be doing very targeted, careful spending to protect people who need the help the most."
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