The Alliance of Industry Associations, representing 30 groups including banks, business, builders, farmers, transport, tourism and retail, made the call after the federal budget was handed down on Tuesday night.
Different regulations in different states and jurisdictions, and other "unfriendly" laws, cost the economy around $160 billion each year, they claim.
While welcoming the productivity improvements announced in the budget, the alliance now wants the government to go further and mirror the US and the UK by cutting red tape by 25 per cent by 2030.
"That is unquestionably the next step, and we urge the government to continue its good work, working with us to deliver on that outcome," Business Council of Australia chief executive Bran Black said in Canberra on Wednesday.
Treasurer Jim Chalmers says his 2026/27 budget will reduce the regulatory burden for business by $10.2 billion a year under a raft of measures across various government portfolios.
These include working with the states and territories to harmonise payroll tax, cut paperwork, promote electronic record keeping, and harmonise state retail tenancy arrangements and other laws to promote business enterprise.
"For decades now in our economy, productivity growth has underperformed," Dr Chalmers told ABC radio on Wednesday.
"The productivity package is very broad, very substantial and will shift the needle on productivity over the medium term."
Top of the list for the Australian Airports Association is the dumping of the international arrivals card, which was left out of the budget and creates long border arrivals queues from ever-growing numbers of travellers.
"The importance of removing the card and having a funding program and a timeline around this is the trigger to get border modernisation in place ahead of the 2032 Olympics," chief executive Simon Westaway told reporters.
For farmers, key issues include supply inefficiencies and farm management regulations, which can involve multiple tiers of government and take years to resolve.
"Something like 40 per cent of the cost that you pay for food in the supermarket comes from red tape and supply chain inefficiencies between farm and supermarket," National Farmers' Federation chief Mike Guerin said.
"Imagine if we could halve that cost and reduce the cost of food and supermarkets for everyday Australians, as we continue to tackle this cost-of-living crisis."
Australian Retailers Association head Chris Rodwell wants the government to match the success of the US in cutting red tape.
"There is a productivity miracle happening in the US at the moment, and we need that same miracle to come to Australia," he said.
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