The 2010 Intergenerational Report Australia to 2050: Future Challenges – the third in the series – is a welcome and useful addition to enhancing the transparency and rigour of long-term policy development, BCA Chief Executive Katie Lahey says.
“The report identifies Australia’s main economic and social challenges and highlights the importance of pursuing the right mix of policies – policies that require fiscal discipline and a commitment to ongoing structural reform,” Ms Lahey said.
“The BCA agrees with the key theme in the report, which is that economic growth is the best way to address the fiscal and demographic challenges of the future.
“This is entirely consistent with the approach the BCA has taken and continues to advocate. Governments must set conditions that encourage business investment and workforce participation and therefore growth.
“In the past we have argued for revenue and expenditure measures in the Budget which work to boost growth and productivity. We have also emphasised the need to ensure the fiscal position remains sustainable on a long-term basis.
“The report rightfully stresses the link between productivity and living standards and the critical obligation this places on all governments to step up in their pursuit of structural reforms that enhance our productive potential.
“It also provides a timely backdrop for both the forthcoming Budget and the impending release of the Henry review of Australia’s tax system,” she said.