Last week’s Economic Reform Roundtable, intended to address Australia’s ongoing productivity challenges, has been critiqued for its lack of concrete measures. HSBC chief economist Paul Bloxham noted that while Treasurer Jim Chalmers identified ten key areas for reform, the absence of specific timelines, productivity gains targets, or contingency plans leaves the country’s reform road map incomplete. The focus areas outlined included streamlining trade, expediting approvals processes, prioritising artificial intelligence, and developing a skilled workforce.
Bloxham emphasised that the fundamental requirements for productivity improvement are well-recognised. However, he pointed out that the primary difficulties lie in identifying and overcoming the obstacles hindering progress. He added that many of the immediate measures discussed, such as road-user charging, tariff removals, and reforms to environmental approvals, had largely been pre-announced, offering little in the way of new initiatives.
Bloxham’s projections paint a less optimistic picture than the government’s forecasts. He anticipates productivity growth of only 0.25 to 0.5 per cent per year in the near future. This is significantly lower than the Treasury’s assumption of 1.2 per cent, highlighting the substantial effort required to improve living standards through productivity gains. The roundtable discussion underscores the ongoing need for more decisive and detailed strategies to address Australia’s productivity challenges.
