Today’s numbers show that Australia’s economy is resilient but not immune to increasing global uncertainty and external shocks, Business Council chief executive Jennifer Westacott said.
“Private sector investment remains the crucial missing link in building a competitive and growing economy that delivers for all Australians. The national accounts show that business investment has fallen for the past two quarters and productivity, which drives wages growth, has been flat for more than three years.
“We continue to call for an economy-wide investment allowance to boost growth, supercharge the private sector economy and protect Australians as we enter a period of even greater economic uncertainty.
“Australia can’t control the global economy but we can prepare ourselves for unexpected shocks by boosting investment and driving the private economy harder.
“That means making Australian workers the most skilled in the world, making Australia more attractive to investment and an easier place to do business through better regulation.
“An investment allowance will encourage businesses to invest, innovate, export more, help build new industries and give Australians the chance to move into new markets and new sectors.
“Stronger growth through a more competitive and productive economy will give Australians a buffer against an increasingly uncertain global economy.
“The economy wasn’t growing fast enough before the summer season of bushfires and the threat of coronavirus. We are yet to see the full impact of these on the economy.
“To give all Australians a chance to get ahead we must boost business investment because that’s what creates new jobs, helps grow wages and breathes life into our regions.
“The government has taken some positive steps to make Australia a more competitive place to do business, putting more money into the pockets of Australians through tax reform and moving to tackle the red tape that stifles new projects.
“Our leaders must now double down to deliver reforms that build strong and sustained economic growth through a vibrant private sector economy.