Overview

A strong economy provides many opportunities: jobs and wealth creation, access to goods and services and new business and investment opportunities.

Australia’s strong economy and resulting prosperity has come about because governments, during the last 25 years, have sought to think beyond the short term and introduce economic reforms.

But ongoing reform and renewal are vital to address new challenges and to lay the foundations for sustained growth.

The BCA has set an aspirational goal for Australia to move into the top-five band of those countries with the world’s highest living standards by 2012.

This goal can be met, provided we set strategic directions for our future and implement reform. It will require action on a number of fronts, including steps to:

• Review and reform federal–state relations and reduce the dysfunctional federalism that acts as a brake on economic growth.
• Reduce the burden, and increase the efficiency, of tax and regulatory systems to support the potential for business to contribute to the economy.
• Improve and increase infrastructure, especially in the supply of water, in transport, in energy and in broadband.
• Increase workforce participation to support both individual opportunity and economic growth.
• Implement an effective, market-based response to climate change.
• Pursue more international trading opportunities for our businesses.
• Create systems of excellence in school, vocational and higher education.

Australia’s policy focus must increasingly shift to these longer-term strategies and investments if prosperity is to be sustained.