The Business Council of Australia (BCA) is concerned about the federal government’s current spending and economic policies.
CEO of BCA, Bran Black, raised alarms over the country’s economic outlook during the organisation’s annual dinner.
Australia’s Prime Minister and Treasurer were also in attendance at the dinner where Black expressed his belief that the country is veering off course with regards to the sustainability of its national prosperity.
Black reflected the views of Australia’s top business leaders in critiquing the government’s industrial relations policies, such as multi-employer bargaining.
The BCA advocates for a return to individual workplace agreements, which they argue would better address businesses' unique needs.
Black also addressed the notion that raising concerns over these policies shouldn’t be perceived as overly pessimistic but rather as a necessary discussion to secure Australia's future economic stability.
A major issue highlighted by Black was the government's apparent lack of planning for the economic challenges posed by an ageing population. He referenced the 2023 Intergenerational Report that forecasts a significant reduction in the ratio of working Australians to retirees over the coming decades. The change in this ratio can significantly increase the financial strain on future budgets.
Black also said the projected decline in the number of working Australians compared to retirees would lead to growing budget deficits and public debt, placing a heavy burden on future generations.
Black emphasised that none of the current proposals from either side of politics have shown signs of adequately addressing this looming issue. His comments reflect a broader frustration within the business community, which feels that more needs to be done to protect the economy's long-term health and stability.
Another area of concern raised by Black was the diminishing competitiveness of Australian businesses in the global marketplace.
He criticised recent political proposals like Greens’ 40% Robin Hood Tax targeting large coal and mining companies and businesses reporting over $100 million in profits. He was also critical of calls for supermarket divestiture powers, which the Coalition supported. He believes these measures make Australia less attractive to investors and will drive some major employers to look for opportunities overseas.
Black warned that Australia risks losing its competitive edge if these trends continue. He urged the government to take stronger action to ensure that Australian businesses can thrive in an increasingly competitive global economy. Without such steps, he warned, the country could find itself falling behind.
This comes at a time when Australia's economic growth has been sluggish. In the June quarter, the nation's GDP growth was just 0.2%, with annual growth sitting at a modest 1%. On a per capita basis, the economy has experienced six consecutive quarterly declines, raising concerns about the country’s economic direction.
As Australia prepares for the upcoming federal election, Black identified five key areas where he believes the government should focus: addressing the rising cost of living, tackling housing shortages, managing the transition to net zero, dealing with the growing expenses of aged care, and resolving the country’s skilled workforce shortage. He cautioned that failure to act in these areas could undermine Australia's future prosperity.
Prime Minister Albanese acknowledged that the BCA’s priorities largely align with the government’s own agenda. In response to these concerns, he highlighted job creation and wage growth as positive outcomes of Labor’s policies. The government has also pointed to ongoing business investments as further evidence of economic progress.
The BCA's concerns highlight a growing sense of unease within Australia's business community despite the government’s optimism. Business leaders are calling for more concrete measures to secure the nation’s long-term economic future, and the government continues to push forward with its policies.