The budget we need – to lift productivity
The tests for success for this budget are clear. It must demonstrate a commitment to fiscal discipline while strengthening Australia’s resilience by improving our ability to compete for the capital we urgently need to lift productivity in an increasingly uncertain world.
Geopolitical tensions, fragmented trade and intense competition for finite investment dollars are reshaping the world economy. These forces are largely beyond Australia’s control. What we can and must work to control is our own fiscal discipline and economic competitiveness. Now, more than ever, our success and prosperity are linked to:
- A strong budget built on fiscal discipline ensures the community receives the strongest possible value for money the government spends on its behalf.
- Sound economic fundamentals drive our ability to compete and win on the world stage as a destination for investment.
We must embrace a program of economic reform to become more competitive and lift productivity by:
- Cutting red tape: We must set a clear, accountable target to cut the cost of unnecessary regulation on business by 25 per cent. This requires coordinated action across all levels of government to reduce duplication, streamline approval processes, and remove regulatory burden that delivers little or no public benefit.
- Fixing our uncompetitive tax system: Australia’s tax system must allow us to compete on at least an even footing with our global peers. Tax settings should support investment and growth, not impose additional burdens that deter businesses from investing, expanding, or operating in Australia.
- Securing reliable, affordable energy: We must establish a comprehensive, technology‑agnostic roadmap to support business investment in new energy capacity and supply. This plan must prioritise reliability and affordability while providing certainty for the transition to net zero.
- Building a positive technology agenda: Australia needs a forward‑looking approach to technology across artificial intelligence, AUKUS Pillar II, digital infrastructure, cybersecurity, and research and development. A clear national agenda is essential to lift productivity, sovereignty, and long‑term economic growth.
- Modernising health and care: The health and care system must be re‑designed to remain sustainable as demand grows. Embracing technology, lifting productivity, and reforming models of care are essential to delivering better health outcomes over the long term.
- Strengthening the skills pipeline: We must ensure Australia is AI‑ready by modernising education and skills systems. This includes better integration between VET and higher education, expanded lifelong learning, and targeted skilled migration to address critical workforce shortages.
- Tackling the housing and infrastructure crisis: Australia must undertake reforms that deliver more homes and the infrastructure we need to grow our economy.
- Building a resilient economy: We must structure our economy so that it can withstand geopolitical shocks and support our security.
Our present trajectory is not set in stone. In an uncertain world, this budget is an opportunity to demonstrate a commitment to fiscal discipline and strengthen our ability to compete for the capital we need to strengthen our resilience by lifting productivity, raising living standards and securing long-term prosperity. This budget is an opportunity to lead the way.
Read our recommendations and the full Pre-Budget Submission here.