Australia has long been an enviable place to do business and has attracted a wide variety of investment. While we are facing ongoing inflation pressures, our budget is in surplus for now. This is in no small part thanks to our inherent national advantages, including an abundance of natural resources.

However, growth in both the world economy and Australia’s economy is likely to be slower in 2024. Our debt burden will grow heavier, as highlighted by the Australian Government’s 2023 Intergenerational Report (IGR), and government spending growth is set to exceed economic growth in the near term. This necessitates a focus on fiscal sustainability through spending discipline, as does continuing to manage inflation.

Australians are feeling the impact of slower economic growth and rising inflation keenly, with a deep-set sense of bleakness in how they view the economy and their personal circumstances. Many households are struggling to make ends meet, and a growing sense of intergenerational injustice is fuelling anger and frustration. It is in this context that the next budget will be delivered.

How we fix our growth and confidence challenge, and deliver increased productivity, is not simple. Many other countries are vying for growth opportunities. Some are actively working to attract investment that may otherwise flow to Australia, including through initiatives such as the US Inflation Reduction Act (IRA). At the same time, Australia has become a more difficult and expensive place to do business.

You can read our full submission here.