Treasurer Jim Chalmers says too many Aussies are ‘burning cash' waiting for approvals
Chalmers will next week host an economic reform roundtable in Canberra where boosting productivity and building resilience in Australia's economy and budget will take centre-stage.
Speaking with The Guardian, Mr Chalmers said slow approval times by governments and councils had stymied productivity.
'It will be one of the main ways that people think through our regulatory challenges and our challenges around the time it takes to get projects approved,' Chalmers told the Guardian.
'In all the consultation I've been doing – in housing, renewable energy projects – there are too many instances where people are burning cash waiting for approvals to build things that we desperately want people to build.'
The treasurer's remarks signal reform to the Environment Protection and Biodiversity Conservation Act is a high priority for the re-elected government.
The Albanese government failed to deliver on its promise of reform the country's complex environmental laws its first term.
Separately, Mr Chalmers told NewsWire on Friday that Australia's sluggish birthrate meant the country would have to lift productivity to maintain living standards.
'It's not surprising that the birthrate has slowed given the pressures on people, including financial pressures,' he said.
'We want to make it easier for them to make that choice. If they want to have more kids, we want to make it easier for them to do that, and that's what motivates a lot of our changes.'
As Australia struggles to boost the economy, and in turn raise wages and living standards, it's contending with a sluggish birthrate of 1.5 births per woman, which is under the 2.1 figure needed to sustain population growth.
Boosting productivity will be essential to ensuring that Australia's ageing population can weather economic headwinds, the Treasurer said.
'Now, the reason why the productivity challenge is important to this is because our society is ageing, and over time, there will be fewer workers for every person who's retired,' he said.
'We need to make sure that our economy is as productive as it can be, as strong as it can be to withstand that demographic change, which is going to be big and consequential.'
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Perth Now
a few seconds ago
- Perth Now
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The next chapter of Australia's economic story is set to be written as the nation's top economic minds brainstorm answers to ailing productivity. After weeks of anticipation, the federal government's three-day economic roundtable will kick off on Tuesday in Canberra. Treasurer Jim Chalmers has already been bombarded with proposals ranging from winding back property investor tax breaks to environmental law reform and cutting red tape. But he has insisted all invited parties bring specific ideas and be willing to find common ground as the outcomes of the roundtable will help steer Australia's economic agenda. "Three days to inform three budgets - and beyond," Dr Chalmers will say in his opening remarks. "(The prime minister) has been clear that this is about writing the next chapter of economic reform and I want to acknowledge the leadership he's shown. "We are realistic about the impact of all this, but optimistic too. In this world of churn and change, we like Australia's chances." Even though the Australian economy has made significant progress on wages, inflation and employment, Dr Chalmers has acknowledged there is still more to do. The roundtable is aimed at lifting living standards primarily by boosting productivity, which has stagnated in Australia and other western countries. "Productivity is like a secret sauce," AMP chief economist Shane Oliver told AAP. "If you can get strong productivity, you can have strong profits, you can have strong wages growth and still keep inflation low." Improved productivity can help guard against future cost-of-living crises, which is particularly important during times of global uncertainty. The first day of the roundtable is expected to put a spotlight on ways to build resilience, with Reserve Bank governor Michele Bullock set to headline Tuesday's proceedings through her presentation on productivity trends. Productivity reform will feature more prominently on the second day before budget sustainability and tax reform help close out the roundtable on Thursday. Environment groups, the business sector, unions and others have all proposed major ideas, but Dr Oliver is keeping his expectations in check and says a firm commitment to regulation, investment incentives and competition reform could likely be called a success. Former Productivity Commission chair Michael Brennan has urged Australians to be realistic about reforms but said he was optimistic. "The strictures that the government has put around contributions - that they be specific, budget neutral and focused on the national interest rather than the vested interest - have all improved the quality of the debate," the e61 Institute chief executive told AAP. "I'm hopeful that there will be positive outcomes but it's already had a positive impact."
West Australian
a few seconds ago
- West Australian
Productivity symposium looks to find the 'secret sauce'
The next chapter of Australia's economic story is set to be written as the nation's top economic minds brainstorm answers to ailing productivity. After weeks of anticipation, the federal government's three-day economic roundtable will kick off on Tuesday in Canberra. Treasurer Jim Chalmers has already been bombarded with proposals ranging from winding back property investor tax breaks to environmental law reform and cutting red tape. But he has insisted all invited parties bring specific ideas and be willing to find common ground as the outcomes of the roundtable will help steer Australia's economic agenda. "Three days to inform three budgets - and beyond," Dr Chalmers will say in his opening remarks. "(The prime minister) has been clear that this is about writing the next chapter of economic reform and I want to acknowledge the leadership he's shown. "We are realistic about the impact of all this, but optimistic too. In this world of churn and change, we like Australia's chances." Even though the Australian economy has made significant progress on wages, inflation and employment, Dr Chalmers has acknowledged there is still more to do. The roundtable is aimed at lifting living standards primarily by boosting productivity, which has stagnated in Australia and other western countries. "Productivity is like a secret sauce," AMP chief economist Shane Oliver told AAP. "If you can get strong productivity, you can have strong profits, you can have strong wages growth and still keep inflation low." Improved productivity can help guard against future cost-of-living crises, which is particularly important during times of global uncertainty. The first day of the roundtable is expected to put a spotlight on ways to build resilience, with Reserve Bank governor Michele Bullock set to headline Tuesday's proceedings through her presentation on productivity trends. Productivity reform will feature more prominently on the second day before budget sustainability and tax reform help close out the roundtable on Thursday. Environment groups, the business sector, unions and others have all proposed major ideas, but Dr Oliver is keeping his expectations in check and says a firm commitment to regulation, investment incentives and competition reform could likely be called a success. Former Productivity Commission chair Michael Brennan has urged Australians to be realistic about reforms but said he was optimistic. "The strictures that the government has put around contributions - that they be specific, budget neutral and focused on the national interest rather than the vested interest - have all improved the quality of the debate," the e61 Institute chief executive told AAP. "I'm hopeful that there will be positive outcomes but it's already had a positive impact."
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2 hours ago
- The Advertiser
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It's "crunch time" for the Australian economy. Young Australians face the prospect of being the first generation to be worse off than their parents and Treasurer Jim Chalmers' economic roundtable is crucial to ensuring that doesn't happen. The generational bargain is in peril and policymakers need to act, Productivity Commission chair Danielle Wood says. Now in their 30s, millennials are struggling to enter the property market, "as policy choices have contributed to house prices growing much faster than incomes for the best part of three decades", Ms Wood told the National Press Club on Monday. That's largely because successive governments have failed to adopt a "growth mindset" and encourage productivity - reaping more from the effort put into work - she said. "Productivity growth is the only way to sustainably lift wages and opportunities over time." 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Ms Wood said the market had naturally found a "sweet spot", as businesses that offer more flexibility find it easier to attract and retain workers, and businesses that want stricter rules around office attendance tend to have to pay a premium. "So I guess if I was to apply a growth mindset to this, I would think what's the problem that we're trying to solve here? It's not clear to me that there needs to be a role for government in that," she said. "Regulatory hairballs" are everywhere, she argued, from 31-step approvals and licensing surveys for would-be Queensland cafe owners to "evermore stringent requirements for energy efficiency in the construction code". The Albanese government has lobbed its fair share of hairballs down Australia's regulatory gullet, contends opposition productivity spokesman Andrew Bragg. 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It's "crunch time" for the Australian economy. Young Australians face the prospect of being the first generation to be worse off than their parents and Treasurer Jim Chalmers' economic roundtable is crucial to ensuring that doesn't happen. The generational bargain is in peril and policymakers need to act, Productivity Commission chair Danielle Wood says. Now in their 30s, millennials are struggling to enter the property market, "as policy choices have contributed to house prices growing much faster than incomes for the best part of three decades", Ms Wood told the National Press Club on Monday. That's largely because successive governments have failed to adopt a "growth mindset" and encourage productivity - reaping more from the effort put into work - she said. "Productivity growth is the only way to sustainably lift wages and opportunities over time." The commission has spelled out a long list of recommendations to kickstart anaemic productivity growth in five separate reports released before the roundtable, which begins in Canberra on Tuesday. Suggestions include reforming the corporate tax system and financial incentives for workplace training. If the roundtable fails to revive productivity growth, Australia's GDP could be six per cent lower than it might otherwise be, a loss of about $6000 per person, HSBC chief economist Paul Bloxham said. "The stakes are high. It's crunch time." Mr Bloxham identified tax reform, competition and regulation as the three key areas the roundtable ought to address. Growth in the regulatory burden was symptomatic of a policy culture failing to prioritise growth, Ms Wood said. Governments have felt a need to "do something" every time an issue emerged, ending up in a system that dampened growth. An example was the Victorian government's plan to legislate at least two days a week of work from home. Ms Wood said the market had naturally found a "sweet spot", as businesses that offer more flexibility find it easier to attract and retain workers, and businesses that want stricter rules around office attendance tend to have to pay a premium. "So I guess if I was to apply a growth mindset to this, I would think what's the problem that we're trying to solve here? It's not clear to me that there needs to be a role for government in that," she said. "Regulatory hairballs" are everywhere, she argued, from 31-step approvals and licensing surveys for would-be Queensland cafe owners to "evermore stringent requirements for energy efficiency in the construction code". The Albanese government has lobbed its fair share of hairballs down Australia's regulatory gullet, contends opposition productivity spokesman Andrew Bragg. In its first term, Labor introduced 5034 new regulations and 400 fresh laws, raising the cost of compliance by $4.8 billion, according to Office of Impact Analysis figures cited by Senator Bragg. "Australia is now one of the most heavily regulated countries in the world," he said. The treasurer rubbished the claims, arguing the coalition introduced more regulations in its last term before its 2022 election loss. "If the coalition had answers on productivity, they wouldn't have presided over the worst decade for productivity growth in the last 60 years," he said. Dr Chalmers acknowledged the government had been getting in its own way with regulation that was slowing down new housing or energy projects. Some regulation, such as tying government procurement to gender equality aims, was serving a useful purpose, he said. "Where regulation is unnecessary, where it's duplicated, where it's not serving a useful purpose, we should seek to wind it back, and that's what we intend to do." It's "crunch time" for the Australian economy. Young Australians face the prospect of being the first generation to be worse off than their parents and Treasurer Jim Chalmers' economic roundtable is crucial to ensuring that doesn't happen. The generational bargain is in peril and policymakers need to act, Productivity Commission chair Danielle Wood says. Now in their 30s, millennials are struggling to enter the property market, "as policy choices have contributed to house prices growing much faster than incomes for the best part of three decades", Ms Wood told the National Press Club on Monday. That's largely because successive governments have failed to adopt a "growth mindset" and encourage productivity - reaping more from the effort put into work - she said. "Productivity growth is the only way to sustainably lift wages and opportunities over time." The commission has spelled out a long list of recommendations to kickstart anaemic productivity growth in five separate reports released before the roundtable, which begins in Canberra on Tuesday. Suggestions include reforming the corporate tax system and financial incentives for workplace training. If the roundtable fails to revive productivity growth, Australia's GDP could be six per cent lower than it might otherwise be, a loss of about $6000 per person, HSBC chief economist Paul Bloxham said. "The stakes are high. It's crunch time." Mr Bloxham identified tax reform, competition and regulation as the three key areas the roundtable ought to address. Growth in the regulatory burden was symptomatic of a policy culture failing to prioritise growth, Ms Wood said. Governments have felt a need to "do something" every time an issue emerged, ending up in a system that dampened growth. An example was the Victorian government's plan to legislate at least two days a week of work from home. Ms Wood said the market had naturally found a "sweet spot", as businesses that offer more flexibility find it easier to attract and retain workers, and businesses that want stricter rules around office attendance tend to have to pay a premium. "So I guess if I was to apply a growth mindset to this, I would think what's the problem that we're trying to solve here? It's not clear to me that there needs to be a role for government in that," she said. "Regulatory hairballs" are everywhere, she argued, from 31-step approvals and licensing surveys for would-be Queensland cafe owners to "evermore stringent requirements for energy efficiency in the construction code". The Albanese government has lobbed its fair share of hairballs down Australia's regulatory gullet, contends opposition productivity spokesman Andrew Bragg. In its first term, Labor introduced 5034 new regulations and 400 fresh laws, raising the cost of compliance by $4.8 billion, according to Office of Impact Analysis figures cited by Senator Bragg. "Australia is now one of the most heavily regulated countries in the world," he said. The treasurer rubbished the claims, arguing the coalition introduced more regulations in its last term before its 2022 election loss. "If the coalition had answers on productivity, they wouldn't have presided over the worst decade for productivity growth in the last 60 years," he said. Dr Chalmers acknowledged the government had been getting in its own way with regulation that was slowing down new housing or energy projects. Some regulation, such as tying government procurement to gender equality aims, was serving a useful purpose, he said. "Where regulation is unnecessary, where it's duplicated, where it's not serving a useful purpose, we should seek to wind it back, and that's what we intend to do." It's "crunch time" for the Australian economy. Young Australians face the prospect of being the first generation to be worse off than their parents and Treasurer Jim Chalmers' economic roundtable is crucial to ensuring that doesn't happen. The generational bargain is in peril and policymakers need to act, Productivity Commission chair Danielle Wood says. Now in their 30s, millennials are struggling to enter the property market, "as policy choices have contributed to house prices growing much faster than incomes for the best part of three decades", Ms Wood told the National Press Club on Monday. That's largely because successive governments have failed to adopt a "growth mindset" and encourage productivity - reaping more from the effort put into work - she said. "Productivity growth is the only way to sustainably lift wages and opportunities over time." The commission has spelled out a long list of recommendations to kickstart anaemic productivity growth in five separate reports released before the roundtable, which begins in Canberra on Tuesday. Suggestions include reforming the corporate tax system and financial incentives for workplace training. If the roundtable fails to revive productivity growth, Australia's GDP could be six per cent lower than it might otherwise be, a loss of about $6000 per person, HSBC chief economist Paul Bloxham said. "The stakes are high. It's crunch time." Mr Bloxham identified tax reform, competition and regulation as the three key areas the roundtable ought to address. Growth in the regulatory burden was symptomatic of a policy culture failing to prioritise growth, Ms Wood said. Governments have felt a need to "do something" every time an issue emerged, ending up in a system that dampened growth. An example was the Victorian government's plan to legislate at least two days a week of work from home. Ms Wood said the market had naturally found a "sweet spot", as businesses that offer more flexibility find it easier to attract and retain workers, and businesses that want stricter rules around office attendance tend to have to pay a premium. "So I guess if I was to apply a growth mindset to this, I would think what's the problem that we're trying to solve here? It's not clear to me that there needs to be a role for government in that," she said. "Regulatory hairballs" are everywhere, she argued, from 31-step approvals and licensing surveys for would-be Queensland cafe owners to "evermore stringent requirements for energy efficiency in the construction code". The Albanese government has lobbed its fair share of hairballs down Australia's regulatory gullet, contends opposition productivity spokesman Andrew Bragg. In its first term, Labor introduced 5034 new regulations and 400 fresh laws, raising the cost of compliance by $4.8 billion, according to Office of Impact Analysis figures cited by Senator Bragg. "Australia is now one of the most heavily regulated countries in the world," he said. The treasurer rubbished the claims, arguing the coalition introduced more regulations in its last term before its 2022 election loss. "If the coalition had answers on productivity, they wouldn't have presided over the worst decade for productivity growth in the last 60 years," he said. Dr Chalmers acknowledged the government had been getting in its own way with regulation that was slowing down new housing or energy projects. Some regulation, such as tying government procurement to gender equality aims, was serving a useful purpose, he said. "Where regulation is unnecessary, where it's duplicated, where it's not serving a useful purpose, we should seek to wind it back, and that's what we intend to do."
