"The study is a positive initiative and its findings should provide further support for the new government's deregulation agenda, particularly relating to small business," the ACCI said in a statement.
"Regulation imposes costs on business and these cost burdens are invariably passed onto consumers and the broader economy in the form of higher prices."
The Productivity Commission report outlines that robust frameworks and regulator culture are crucial to improving regulatory effectiveness.
"At every level of government regulation is strangling small business," Peter Anderson, ACCI chief executive, said.
"Bad regulation has a human cost for small business people; it is in the hundreds of hours slumped over government forms, thousands of dollars wasted, and jobs that could be created but aren't.
"That's why along with our members we ran the pre-election Small Business. Too Big to Ignore campaign this year, and will continue to call on politicians of all persuasions to work together to cut down on the red tape and give small business a break.
"We have already started working closely with the new government and relevant ministers to make this happen."
