Yesterday’s National Accounts show the weakest growth in Australia’s economy since the pandemic recession, Business Council chief executive Jennifer Westacott said.
“We all should want an economy growing in a sustainable way that ensures low and stable inflation over time, underpinned by improved productivity.
“But, yesterday’s numbers show a continuation of weak productivity growth alongside persistent inflation, which triggered another rate hike this week.
“We simply cannot ignore our serious productivity challenges for a moment longer.
“Australia cannot continue to turn a blind eye to our investment drought and sluggish productivity, which risks other countries overtaking us and important projects and new industries going offshore.
“As global economic headwinds continue to gather, we know Australia is more vulnerable than ever.
“We simply cannot risk making big, economy-wide changes that could add more rigidity and complexity in areas like the workplace relations system.
“As currently proposed, the government’s Same Job, Same Pay reforms risk making the situation worse by locking in inflexibility.
“In order to drive whole of economy growth, we need to be pulling every lever to incentivise investment, lift productivity and create more jobs.
“The BCA long has advocated for a 20 per cent investment allowance to make more investment options stack up.
“This would give businesses the confidence and certainty to start projects, invest and create the jobs we need across the economy. More investment is the key to better productivity.
“As Australians face a soaring cost of living, we must avoid own goals like workplace relations changes that leave our feet stuck in the cement of complexity and disruption.”