Is party only now figuring out that Australia is in a productivity crisis?
Opposition Leader Sussan Ley has laid into Labor’s track record on productivity as the highly anticipated Economic Reform Roundtable gets underway.
Anthony Albanese (pictured)’s Labor government is behind the curve in addressing Australia’s productivity crisis, Ley told reporters on Tuesday.
“There are many aspects to why our productivity is flatlining, but I lay this firmly at the feet of the Albanese government,” said Ley.
While Ley acknowledged that Labor migration policy is about right, she drew attention to the government’s out-of-control spending habits. Spending has now lifted to 27% of gross domestic product (GDP), while the economy grew just 0.2% in the last quarter, Ley highlighted.
Kicking off today and running through to Wednesday, the Economic Reform Roundtable is bringing together a host of industry leaders to brainstorm solutions to Australia’s productivity crisis.
According to the Productivity Commission’s 2025 Annual Productivity Bulletin, multifactor productivity (MFP) growth in the market sector was just 0.1% between 2022-23 and 2023-24, well below the 20-year average of 0.3% and far beneath the 1.6% annual rate seen during the 1990s productivity boom.
Read more: Economic Reform Roundtable to shine light on Australia’s productivity crisis
All options are on the table – including GST hikes. The opposition has signalled that it intends to work with Labor on any viable solutions that emerge from the roundtable, although not without a few barbed comments thrown about.
“This is the fourth year of a Labor government and it is as if they’re only just discovering that they need to do something about productivity. Where were they for the last three years?” said Ley.
“Every step they take mitigates against the most important thing here, which is attracting investment, driving growth, lifting living standards, increasing the size of businesses and having confidence.”
Will GST get a shake up?
The Mortgage and Finance Association of Australia (MFAA), led by Anja Pannek, is calling for an increase in the GST from 10% to 15% to replace stamp duty and payroll taxes, arguing this would make housing more accessible and reduce administrative burdens.
Recent modelling for the Productivity Commission supports this, showing GST is less economically harmful than company taxes.
Additionally, the industry is pushing for reduced red tape, including fewer regulatory changes and streamlined housing approvals, to address bottlenecks and improve affordability. These reforms aim to boost productivity and provide certainty for investors and homebuyers.
