Assuming the post is to blame, I wanted to jump the queue and offer a few thoughts ahead of the upcoming National Productivity Roundtable.

I’ve been digging into the latest productivity data. In short: we’re coasting. Productivity (how much we get done for every hour we work) has barely moved, especially in the industries that power our economy. If we don’t turn things around, we risk becoming a very comfortable country… that slowly falls behind the world.

So, in case my seat’s still being set,
here are my top 5 ways to look at the problem:

1. Big Sectors, Big Trouble

Mining, Finance, Construction, and Education, our traditional economic giants, are going backwards. Construction, our 2nd largest employer, is a hidden drag on housing supply.

Solution: Implement national regulatory reform, fast-track approvals, and adopt Modern Methods of Construction.

2. Public Sector Needs a Tune-Up

Healthcare is now our biggest employer and one of the worst for productivity. Public administration isn’t faring much better.

Solution: Digitise service delivery, embed performance indicators, and fund innovation pilots.

3. Only a Few Sectors Are Nailing Tech, and
They’re Too Small

Media, real estate, and administrative support are performing well, but they’re not big enough to move the needle.

Solution: Incentivise SME tech adoption, fast-track digital skills, and co-fund transformation.

4. We’ve Stopped Investing Where It Counts

Since the Global Financial Crisis, investment in capital and innovation has declined. Globally, 70% of advanced economies are facing similar challenges.

Solution: Create a National Productivity Accelerator, fund public-private R&D, and enhance advanced industry capabilities.

5. Tax Reform: The Elephant in the Room

Our current tax system relies heavily on personal income tax, which is unsustainable in the long term. Recent discussions highlight the need for comprehensive tax reform to support productivity and economic resilience.

Solution: Initiate a national conversation on tax reform, focusing on broadening the tax base, reducing reliance on personal income tax, and ensuring the system supports growth and innovation.

The takeaway? To boost productivity, we must stop talking in generalities and start targeting the most significant levers.

Treasurer, I’ll keep an eye on the letterbox, but I’ll bring a name tag just in case.

Thanks,
Paul