Patchwork laws between states, including those that ban single-use plastics, are driving up costs for shoppers.
It's a claim Australia's peak retail body makes in a new report that argues the "regulatory fragmentation" costs households about $900 million a year.
Single-use coffee cups are legal in some states but can't be used in others, meaning retailers are spending more to comply with laws while being forced to run separate, jurisdiction-specific supply chains.
The Australian Retail Council says coffee cups are an example of the contrasting laws hurting retailers and driving up prices.
"Right now, a truck carrying a legal load in Sydney can be forced to stop at the border and transfer that load onto a different vehicle simply to continue to Brisbane," the council's chief policy officer Glenn Fahey said.
"Delivery schedules are dictated by mismatched local rules and different council curfews … this friction ultimately ends up in the price on the shelf that every Australian pays."
Differing heavy vehicle standards and driver rules including curfews are another source of frustration for retailers.
The retail council said it could take as long as two years to obtain permits for some freight routes, with retailers requiring approval from each state and council area through which goods travelled.
The report's financial modelling was conducted by consulting firm Mandala, which found jurisdictional fragmentation costs Australia $2.6 billion a year.
Without conceding law variation was natural within Australia's federation, the retail council called for the establishment of a national harmonisation council to drive universal decision-making and ease fragmentation.
It also wants $260 million from the national productivity fund spent on a harmonisation incentive scheme.
A one per cent lift in retail productivity would save a household $115 a year, retail council chief executive Chris Rodwell said.
"Businesses are spending more time and money navigating different rules when they could be investing in jobs, innovation and growth," he said.
"The good news is there are obvious solutions and significant financial upside for all Australians if we seize the moment and tackle the problem."
Retail is Australia's second-largest employing sector, with more than 1.5 million workers.