“These numbers are encouraging but certainly aren’t cause for complacency – one swallow does not make a summer,” Business Council chief executive Jennifer Westacott said today following the release of the June quarter National Accounts.
“There are hopeful signs that the ‘animal spirits’ are returning, but we can’t afford to let this tailwind pass us by. That means reform, and the Senate can start by passing the full Enterprise Tax Plan.
“Australia is in an increasingly competitive battle to attract investment dollars. Unless we act to boost our competitiveness now, we risk committing ourselves to a low-growth, low-wage future.
“If anything, these encouraging results should be a call to action for our political leaders, we must act now to build on and strengthen positive trends.
“Australians’ higher wages and living standards have been built on sustained economic growth of more than 3 per cent, but this data suggests that won’t return soon.
“Australians expect to see rising living standards, and will not tolerate a low-growth economy. Acting now to avoid a low-growth future is urgent.
“If we are going to avert a low-growth future, we need to pull every lever available to get business investment flowing. That means embracing more flexible work arrangements, a competitive tax system and overhauling bad regulations that stifle investment.”