Business SA has described the state's public service as "morbidly obese" as it called on the next state government to review the scope of services it provides.
The organisation has released a 100-page charter ahead of the March state election which also calls for parliamentary reforms, business tax cuts, the establishment of an independent infrastructure authority and for higher population growth.
"We need to grow our economy and ensure there are jobs for our children, in what should be a thriving state with a bright future," Business SA chief executive Nigel McBride said.
"Instead, we have a morbidly obese public sector, payroll tax rates which penalise our successful small and medium-sized businesses, the most expensive power in our nation, and an ageing population and slow growth."
In its proposed changes to parliament, the Business SA charter wants the number of MPs in both houses to be cut, and fewer government ministers.
It said more small businesses should be exempt from payroll tax, and called for the rate paid by larger companies to be cut from 4.95 per cent to 4.5 per cent.
Premier Jay Weatherill said the Business SA plan posed a massive risk to government services including schools and hospitals, and was in line with plans for "very large tax giveaways" from the Liberal opposition and Nick Xenophon's SA-BEST party.
"What does that mean? Deep cuts to health and education," he said.
"They're all on the same page."
Opposition Leader Steven Marshall did not comment directly on Business SA's assessment of the public service, but said it was in need of better leadership.
"What the public service needs in SA is leadership and new direction and only the Liberal Party will provide that" Mr Marshall said
