The Business Council of Australia welcomes savings identified in the Federal Government’s Mid-Year Economic and Fiscal Outlook (MYEFO), but says Australia still faces significant structural challenges that require deeper economic reform to attract investment and lift productivity.
BCA Chief Executive Bran Black said the MYEFO figures show some progress on fiscal discipline, yet underscore the scale of longer-term budget pressures facing the nation.
“We welcome the Government’s efforts to improve the budget position and the resulting improvement in projected deficits,” Mr Black said.
“But today’s figures make clear there is much more work to do to strengthen Australia’s finances, and the real solution to our fiscal challenges lies in improving the economy’s capacity to grow, innovate and attract investment.”
Mr Black said long-term fiscal pressures remain substantial, compounded by weakness in productivity growth that remains below budget assumptions. If this continues it means lower relative growth, revenue and living standards – and continued pressure on inflation.
“To build a sustainable fiscal path, Australia needs stronger productivity, deeper investment and a competitive environment that supports business growth. That means reducing unnecessary regulatory burdens, modernising the approvals framework and improving skills and infrastructure.”
Mr Black also noted that while restraint and savings are welcome, they must be paired with policies that boost revenue through stronger economic performance rather than further constraints on productivity.
“We support reforms that lift investment and business confidence, which are critical to creating jobs, supporting incomes and enhancing government revenues over time.”