Survey of 224 leaders from 84 global companies with operations in Australia identifies strong demand for innovation, investment and competitiveness reform.
More than two-thirds of current and emerging business leaders do not believe measures contained in the Federal Budget will materially improve Australia’s economic resilience or productivity, according to a survey conducted by Abundium during its Emerging Leaders in Multinationals Summit.
The survey captured responses from 224 leaders from 84 global companies operating in Australia, including CEOs, CFOs, C-suite executives and emerging business leaders across healthcare, technology, infrastructure, manufacturing, professional services and financial services.
When asked how likely the measures presented in the Budget were to promote Australia’s economic resilience and improve productivity, 50% of respondents said “not at all”, while a further 18% said “slightly”. Only 12% said the measures were “moderately” likely to improve resilience and productivity, while just 7% said they were “likely”. No respondents said they were “extremely likely” to do so.
Participants were also asked how last week’s Budget was likely to impact global companies investing in Australia. Only 1% said it would be beneficial to attracting investment, while 25% said it would be detrimental or very detrimental.
When asked what additional reforms or measures they would have liked to see included in the Budget to improve Australia’s global relevance and competitiveness, participants most commonly called for tax reform, stronger R&D and innovation incentives, healthcare innovation investment, manufacturing support, energy reform, faster approvals and reduced regulatory complexity.
Respondents repeatedly pointed to the need for lower and simpler business taxes, stronger incentives for innovation and R&D, greater support for startups and local manufacturing, and policies that make Australia a more attractive destination for global investment.
Several respondents specifically referenced the need for “policies that grow the economic pie”, while others called for “real tax reform”, “quicker decision-making frameworks to get business moving”, and “tangible policies to attract, recognise and reward innovation”.
Abundium Multinational Business Council Co-Chair Rich Hirst said the findings highlighted a growing disconnect between the Government’s productivity narrative and how business leaders viewed the likely economic impact of the Budget.
“The Government spoke extensively about productivity, resilience and economic transformation in this Budget, but these results suggest many business leaders do not yet see the structural reforms required to materially deliver those outcomes,” Mr Hirst said.
“There is a growing sense that Australia risks becoming less competitive for investment, innovation and global talent unless we move faster on long-term economic reform.
“What came through consistently was a desire for policies that encourage investment, reward innovation, improve productivity and reduce the barriers that make it harder to do business and grow.
“These leaders are not asking for short-term stimulus. They are asking for a clearer long-term competitiveness agenda.”
Mr Hirst said many respondents believed Australia needed to move beyond incremental policy adjustments toward broader structural reform focused on competitiveness, innovation and economic growth.
The findings will be shared with Treasury and Federal Government stakeholders as part of ongoing discussions around productivity, innovation and investment reform.
To arrange an interview with Abundium Multinational Business Council Co-Chair Rich Hirst, or for further detail, please contact Randal Killip at Profile For Media on 0425 714 159 or via email at randal@profileformedia.com.au.
About Abundium
The Abundium Multinational Business Council is an advisory and advocacy forum established to provide a sounding board to government, regulators and media on issues impacting global organisations operating in Australia, and to support local leaders of global companies with strategic decision-making and advocating for investment with their offshore headquarters in an increasingly competitive international marketplace.www.abundium.com/council.
