Australia Seeks Economic Reform to Boost Productivity

Productivity & Economic Growth - Australia's productivity growth is weak, with recent forecasts predicting a further decline to 07% (7/10 of 1%), significantly below the long-term average of 16% [3] - Real wages have been flatlining or declining, highlighting the need for action to address productivity issues [8] - Regulatory reform, particularly streamlining approvals for major projects and housing, is identified as a potential area for quick wins [11] - Long-term tax reform, especially regarding housing and accumulated wealth, is considered crucial for relieving the burden on working Australians [9][22] Government & Policy Initiatives - The Australian Treasurer is hosting a gathering of experts and leaders to address declining productivity, with 900 submissions to consider [1][2][3] - All ideas are on the table, but changes to GST and negative gearing are ruled out [4][5] - The government abolished non-compete agreements for low-income workers to improve labor mobility [14] - Road user charging is being considered as a replacement for declining fuel excise revenue due to the rise of electric vehicles [18] Labor Market & Regulatory Issues - Licensing restrictions across different states impede labor mobility, adding complexity to the regulatory environment [14] - Australia has a relatively regulated labor market with general protections around minimum pay and working conditions, unlikely to be significantly liberalized [15] Economic Structure - Approximately 80% of the Australian economy is services-based, with about 90% of the workforce employed in the service sector [25]