Roundtable ignores the most urgent leak in our productivity pipeline
This month's Productivity Commission roundtable is Jim Chalmers' chance to take his reform agenda for a spin. While the roundtable will toy with a transitional GST rebate and the ACTU's four-day fantasy, it will ignore the most urgent leak in our productivity pipeline: the innovators.
If you're in the start-up game, it's no shock that your sights are set on the US. The gravitational pull of Silicon Valley or New York, where ambition rubs shoulders with billion-dollar ideas, is hard to resist. But we know money talks. The US venture capital market is a $2 trillion juggernaut – nearly 300 times the size of Australia's $6 billion pool. When the funding gap is that wide, it's no wonder our brightest minds are boarding flights instead of building empires at home.
We shouldn't forget the young professionals in industries like investment banking, management consulting and law who will soon relieve themselves of client calls and corporate hierarchies. Lockstep progression and conservative cultures have dissuaded them from aiming higher on the corporate ladder. Many of them will look to build globally, instead of climbing locally.
Tim Fung famously traded investment banking for Airtasker, the go-to platform for gig work. Jane Lu's transition from EY to global fashion stardom with Showpo is also well known. It's a miracle we held on to either of them, unlike Andrew Lacy, who ditched McKinsey to eventually start up health tech company Prenuvo in the US.
More young professionals are leaving Australia each year. These bright minds aren't just chasing higher pay and lower taxes abroad, they're chasing ecosystems that actually move. If we're not careful, their next Eureka moment will be in Manhattan, not Melbourne.
Next week's roundtable must link productivity to people, especially the next generation of innovators. The roundtable will convene to discuss productivity, economic resilience and budget sustainability. Although important issues, none will directly address the brain drain.
Meanwhile, the European Innovation Council Accelerator is handing founders up to $4 million in grant funding and $16 million in blended financing. An even shorter haul to Singapore will get our innovators fast-tracked support through co-investment schemes. Australia offers a patchwork quilt of grants and red tape.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sky News AU
39 minutes ago
- Sky News AU
Jim Chalmers ‘optimistic' about economic roundtable
The Albanese government is launching its three-day economic roundtable in Canberra. Treasurer Jim Chalmers is 'optimistic' the talks will spark concrete action, particularly on cutting regulations. The government's roundtable will bring together a mix of leaders from business, unions, and economic experts.
9 News
2 hours ago
- 9 News
Call for 'death tax' to help Australia raise $70 billion
Your web browser is no longer supported. To improve your experience update it here As business, union, and community leaders gather in Canberra this week for the government's landmark economic round table, a call has come for Australia to impose an inheritance tax among other measures to raise $70 billion in tax revenue. A report from the Australia Institute claims this can be done in ways that wouldn't hurt low- or middle-income Australians. The report suggested a 2 per cent wealth tax on people with a worth of more than $5 million could alone raise $41 billion a year. A new report calls for the return of the inheritance tax. (iStock) It also found a reintroduced inheritance tax would raise $10 billion, as well as reducing "intergenerational inequality". An inheritance tax - often dubbed a "death tax" by critics - is a tax paid by a person who inherits money or property from a deceased person. They do not exist in Australia, though they previously did in state and federal form in the 1960s and 1970s. Federal Treasurer Jim Chalmers will head up an economic round table in Canberra. (Alex Ellinghausen) The report's third major suggestion was scrapping the capital gains tax discount. The researchers found this would raise an extra $19 billion a year and help make property prices more affordable for those struggling to crack the market. "Australia is a low-tax country that does not do a good job of taxing wealth," Australia Institute senior economist Matt Grudnoff said. "It is one of the few developed economies in the world which has neither a wealth tax nor an inheritance tax." "Correcting this would raise huge amounts of extra revenue for essential services and ease growing inequality in Australia." He said the wealth tax would still raise $41 billion even if family homes and superannuation were exempted. "If you limited it to just the 200 richest households in the country, it would still raise $12.5 billion per year," Grudnoff said. He said many developed economies, including the US, UK, Japan, and most of Europe, had an inheritance tax or something that functioned as one. "A couple of generations ago, Australia had probate and succession duties that raised 0.36 per cent of GDP, which, if reintroduced today, would deliver an extra $10 billion in revenue," he said. "These are not radical ideas. "If we want well-funded schools and hospitals; decent, affordable housing for all; a world-class NDIS; a fair welfare system; and dozens of other things which would improve the lives of millions of Australians, we can have them." An inheritance tax would raise $10 billion, the report found. (Getty Images/iStockphoto) The economic round table this week will consider nearly 900 submissions from "experts, industry leaders and individuals and over 40 forums that Ministers have held right around the country", Prime Minister Anthony Albanese said. "This healthy public debate has also made it clear there is substantial common ground on many issues – and that is where the immediate opportunities lie." money Tax Economy Australia national CONTACT US
The Advertiser
2 hours ago
- The Advertiser
Record fine leaves Qantas with unwanted brand baggage
Qantas stands accused of betraying Australian values and undermining its reputation by illegally sacking baggage handlers. Experts warn the airline, which markets itself as the "Spirit of Australia", risks losing its place in the national psyche as a result of its recent indiscretions. Qantas was on Monday fined a record $90 million for outsourcing 1820 ground staff roles, a move the Federal Court ruled was designed to curb union bargaining power in wage negotiations. It added to a $100 million fine it received for selling tickets to flights that were already cancelled between 2021 and 2023, against the backdrop of executives pocketing seven-figure bonuses. Trading on being the "Spirit of Australia" could mean the flag carrier might be held to "exceptional, indeed unique" standards, Justice Michael Lee noted as he delivered the fine. RMIT associate professor of finance Angel Zhong agreed, saying the positioning invited scrutiny of the airline's ethics, not only its performance. "Illegally sacking workers is seen as a betrayal of the very values Qantas claims to represent: fairness, mateship and respect," she told AAP. "If Qantas is the 'Spirit of Australia', then the public expects it to act with a conscience, not just a balance sheet." Illegally sacked Qantas employee Don Dixon said the company meant everything to Australians, but needed to behave with that in mind. "It's an Australian company. You go overseas and see that red kangaroo, you know 'that's my country and I'm going home, I feel safe' ... that's been lost," he told AAP. The embattled airline unsuccessfully appealed against the decision to the High Court, paving the way for the penalty to be awarded. Justice Lee ordered Qantas to pay $90 million in penalties, with $50 million to be paid to the union that brought the proceedings and highlighted the illegal conduct. He cited the "sheer scale of the contraventions, being the largest of their type" as a reason to impose a penalty that would deter other businesses from similar conduct. Qantas will have to pay the hefty bill on top of a $120 million compensation payment it has made to the affected ground staff for their economic loss, pain and suffering following the outsourcing. Public frustration and disappointment with Qantas might have increased, Assoc Prof Zhong said, but it wouldn't necessarily change consumer behaviour with price, route availability and loyalty programs outweighing ethical concerns. "That said, sustained reputational damage can have long-term effects," she said. "If trust continues to decline, Qantas risks losing not just customers, but its privileged position in the national psyche." Qantas stands accused of betraying Australian values and undermining its reputation by illegally sacking baggage handlers. Experts warn the airline, which markets itself as the "Spirit of Australia", risks losing its place in the national psyche as a result of its recent indiscretions. Qantas was on Monday fined a record $90 million for outsourcing 1820 ground staff roles, a move the Federal Court ruled was designed to curb union bargaining power in wage negotiations. It added to a $100 million fine it received for selling tickets to flights that were already cancelled between 2021 and 2023, against the backdrop of executives pocketing seven-figure bonuses. Trading on being the "Spirit of Australia" could mean the flag carrier might be held to "exceptional, indeed unique" standards, Justice Michael Lee noted as he delivered the fine. RMIT associate professor of finance Angel Zhong agreed, saying the positioning invited scrutiny of the airline's ethics, not only its performance. "Illegally sacking workers is seen as a betrayal of the very values Qantas claims to represent: fairness, mateship and respect," she told AAP. "If Qantas is the 'Spirit of Australia', then the public expects it to act with a conscience, not just a balance sheet." Illegally sacked Qantas employee Don Dixon said the company meant everything to Australians, but needed to behave with that in mind. "It's an Australian company. You go overseas and see that red kangaroo, you know 'that's my country and I'm going home, I feel safe' ... that's been lost," he told AAP. The embattled airline unsuccessfully appealed against the decision to the High Court, paving the way for the penalty to be awarded. Justice Lee ordered Qantas to pay $90 million in penalties, with $50 million to be paid to the union that brought the proceedings and highlighted the illegal conduct. He cited the "sheer scale of the contraventions, being the largest of their type" as a reason to impose a penalty that would deter other businesses from similar conduct. Qantas will have to pay the hefty bill on top of a $120 million compensation payment it has made to the affected ground staff for their economic loss, pain and suffering following the outsourcing. Public frustration and disappointment with Qantas might have increased, Assoc Prof Zhong said, but it wouldn't necessarily change consumer behaviour with price, route availability and loyalty programs outweighing ethical concerns. "That said, sustained reputational damage can have long-term effects," she said. "If trust continues to decline, Qantas risks losing not just customers, but its privileged position in the national psyche." Qantas stands accused of betraying Australian values and undermining its reputation by illegally sacking baggage handlers. Experts warn the airline, which markets itself as the "Spirit of Australia", risks losing its place in the national psyche as a result of its recent indiscretions. Qantas was on Monday fined a record $90 million for outsourcing 1820 ground staff roles, a move the Federal Court ruled was designed to curb union bargaining power in wage negotiations. It added to a $100 million fine it received for selling tickets to flights that were already cancelled between 2021 and 2023, against the backdrop of executives pocketing seven-figure bonuses. Trading on being the "Spirit of Australia" could mean the flag carrier might be held to "exceptional, indeed unique" standards, Justice Michael Lee noted as he delivered the fine. RMIT associate professor of finance Angel Zhong agreed, saying the positioning invited scrutiny of the airline's ethics, not only its performance. "Illegally sacking workers is seen as a betrayal of the very values Qantas claims to represent: fairness, mateship and respect," she told AAP. "If Qantas is the 'Spirit of Australia', then the public expects it to act with a conscience, not just a balance sheet." Illegally sacked Qantas employee Don Dixon said the company meant everything to Australians, but needed to behave with that in mind. "It's an Australian company. You go overseas and see that red kangaroo, you know 'that's my country and I'm going home, I feel safe' ... that's been lost," he told AAP. The embattled airline unsuccessfully appealed against the decision to the High Court, paving the way for the penalty to be awarded. Justice Lee ordered Qantas to pay $90 million in penalties, with $50 million to be paid to the union that brought the proceedings and highlighted the illegal conduct. He cited the "sheer scale of the contraventions, being the largest of their type" as a reason to impose a penalty that would deter other businesses from similar conduct. Qantas will have to pay the hefty bill on top of a $120 million compensation payment it has made to the affected ground staff for their economic loss, pain and suffering following the outsourcing. Public frustration and disappointment with Qantas might have increased, Assoc Prof Zhong said, but it wouldn't necessarily change consumer behaviour with price, route availability and loyalty programs outweighing ethical concerns. "That said, sustained reputational damage can have long-term effects," she said. "If trust continues to decline, Qantas risks losing not just customers, but its privileged position in the national psyche." Qantas stands accused of betraying Australian values and undermining its reputation by illegally sacking baggage handlers. Experts warn the airline, which markets itself as the "Spirit of Australia", risks losing its place in the national psyche as a result of its recent indiscretions. Qantas was on Monday fined a record $90 million for outsourcing 1820 ground staff roles, a move the Federal Court ruled was designed to curb union bargaining power in wage negotiations. It added to a $100 million fine it received for selling tickets to flights that were already cancelled between 2021 and 2023, against the backdrop of executives pocketing seven-figure bonuses. Trading on being the "Spirit of Australia" could mean the flag carrier might be held to "exceptional, indeed unique" standards, Justice Michael Lee noted as he delivered the fine. RMIT associate professor of finance Angel Zhong agreed, saying the positioning invited scrutiny of the airline's ethics, not only its performance. "Illegally sacking workers is seen as a betrayal of the very values Qantas claims to represent: fairness, mateship and respect," she told AAP. "If Qantas is the 'Spirit of Australia', then the public expects it to act with a conscience, not just a balance sheet." Illegally sacked Qantas employee Don Dixon said the company meant everything to Australians, but needed to behave with that in mind. "It's an Australian company. You go overseas and see that red kangaroo, you know 'that's my country and I'm going home, I feel safe' ... that's been lost," he told AAP. The embattled airline unsuccessfully appealed against the decision to the High Court, paving the way for the penalty to be awarded. Justice Lee ordered Qantas to pay $90 million in penalties, with $50 million to be paid to the union that brought the proceedings and highlighted the illegal conduct. He cited the "sheer scale of the contraventions, being the largest of their type" as a reason to impose a penalty that would deter other businesses from similar conduct. Qantas will have to pay the hefty bill on top of a $120 million compensation payment it has made to the affected ground staff for their economic loss, pain and suffering following the outsourcing. Public frustration and disappointment with Qantas might have increased, Assoc Prof Zhong said, but it wouldn't necessarily change consumer behaviour with price, route availability and loyalty programs outweighing ethical concerns. "That said, sustained reputational damage can have long-term effects," she said. "If trust continues to decline, Qantas risks losing not just customers, but its privileged position in the national psyche."
