Australians have long enjoyed an extraordinary, improving quality of life, with subsequent generations more prosperous than their forebears. It is becoming ever clearer, however, that this will not continue if we are complacent and do not do the ‘hard yards’ reform necessary to turn around the recent fall in our living standards.

As things stand, other nations are doing more to build future prosperity by competing harder, winning more investment, and reaping the productivity benefits of difficult reforms.

The next budget is a chance to revive growth in the economy, lift productivity, enhance competitiveness and get the nation’s finances back onto a sustainable path. A strong economy and a strong budget go hand‑in‑hand. A strong economy helps to deliver the jobs, higher wages, improved living standards and the tax revenue to fund services that Australians expect. Australia needs fiscal buffers, not persistent deficits, if we are to navigate what are likely to be challenging economic and geopolitical times ahead.

Addressing this challenge is the key theme for the Business Council of Australia pre-budget submission for 2025-26.

The solutions lie in unleashing the private sector and growing business investment, in line with the Treasurer’s recent comments that “the best kind of growth is private sector-led growth.” What the nation needs now, more than anything, is a formalised long-term economic plan, that can credibly address the major domestic and global forces which are challenging Australia’s future prosperity.

Our submission provides a range of practical recommendations to the Government on how a private sector-led growth agenda can be supported, including:

• A broad-based investment allowance of 20 per cent to unlock more business investment and drive GDP growth.
• Stronger fiscal rules to support spending discipline, including a cap on real spending growth of 2 per cent annually.
• A deregulation agenda to drive efficiencies and make it easier to do business.
• Reforms to workplace laws to ensure more flexibility for employees and employers and drive productivity to lift real wages.
• Reforms to Australia’s housing supply, skills and health care systems – as outlined in the BCA’s Big Five Questions.

Read our 2025-26 Pre-Budget Submission here.