The Productivity Commission has warned that red tape is out of control and has recommended a suite of proposals to overhaul regulations that are strangling the economy.

In an interim report published ahead of Treasurer Jim Chalmers’ economic reform roundtable this month, the Productivity Commission said existing checks and balances on regulation were not working, and the economy was increasingly held back by Band-Aid solutions, duplicate or inconsistent rules and overly prescriptive and risk-averse regulations.