But What About Productivity?

26 May 2023

Although it's fiscally prudent, this year's Federal Budget misses the mark, according to Ai Group chief executive Innes Willox.

"It offers little to kickstart the structural reforms needed to boost productivity, investment, innovation, job creation and sustainable real incomes growth," he says.

"The announcements around improving Australia's skills base are the major positive, including the prospect of $3.7 billion in additional funding for vocational education and training, assuming a National Skills Agreement can be struck...

"The focus on skilled migration remaining the core of our national migration program of 190,000 migration places is also welcome as industry seeks to fill growing skills gaps across our economy."

But among the "disappointments" for business is the lack of focus on improving productivity, "as well as relative lack of attention given to the needs of business itself", Willox says.

"Overall, the Budget does not seek to cure the fundamental problems that Australian businesses and the economy face. While it reduces debt, the focus on short-term household relief will not provide the productivity growth we need now and the jobs we need for the future."

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