Statement attributable to Business Council Chief Executive Bran Black
Today’s decision by the Reserve Bank of Australia to increase the cash rate by 25 basis points to 4.35 per cent makes clear there is more work to be done to bring inflation under control.
The decision underlines the importance of a Federal Budget focused on two things: fiscal discipline on spending and debt, and productivity reforms to drive the investment and growth that delivers real wage increases for all Australians.
On the former, the Federal Budget next week must have the strongest possible focus on reducing spending and reducing debt. Households and businesses of all sizes are already feeling the pressure and the Government must not add to it.
On the latter, lifting productivity and attracting investment is the only way to genuinely address inflation and build an economy that works for all Australians.
We call on the Government to prioritise reforms like immediate expensing, changes to the Research and Development Tax Incentive, increased support for the National Productivity Fund, and committing to a 25 per cent reduction in regulatory costs by 2030.
The Budget must reject the proposed gas tax and cash flow tax, which will only drive costs higher for households and businesses of all sizes.