What does broking industry hope to hear during Labor's productivity talkfest?
The Economic Reform Roundtable, running between today and Thursday, comes amid a crisis point for Australian productivity.
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.
Labour productivity rose by 1.1% in the same period, but this was driven almost entirely by capital deepening – meaning more capital per worker – rather than genuine efficiency improvements or innovation in how capital and labour are combined.
If these issues are not addressed, future income growth and living standards are at stake. But while the diagnosis is clear, the jury is out on the remedy.
Hence why Labor Treasurer Jim Chalmers (pictured, centre) is bringing the best and brightest to the table next week to brainstorm solutions to Australia’s productivity crisis.
As the roundtable approaches, the broking industry awaits with bated breath for what emerges from the talkfest.
MFAA calling for higher consumption taxes
A rising number of industry leaders is urging an increase in consumption taxes in the lead-up to the roundtable.
Among them is the Mortgage and Finance Association of Australia (MFAA) under chief executive Anja Pannek (pictured, right).
In its submission to the Productivity Commission, the MFAA recommended raising the GST from its current rate of 10% – unchanged since 2000 – to 15%.
This increase, the MFAA argued, would help offset the abolition of stamp duty and payroll taxes, which the association also proposes.
“First-home buyers across Australia are provided exemptions or concessions, saving them from paying stamp duty on their first home purchase, however for others, stamp duty locks homeowners into existing properties, limiting refinancing or downsizing," the MFAA said.
“The removal of stamp duty makes housing more attainable while reducing the administrative and cost burden for not only first-home buyers, but also federal and state governments administrating interventionist, market-distorting and complex home buyer grant schemes."
Recent modelling for the Productivity Commission by high-profile independent economist Chris Murphy also supports raising the GST.
“Per extra dollar of revenue raised, the GST does the least economic harm, followed by personal income tax, followed by company income tax with the most economic harm,” the report said.
“This pattern of marginal excess burdens implies that we can substantially increase consumer welfare by shifting the tax mix away from a more harmful tax like company tax towards a less harmful tax.”
Red tape in the firing line
One potential move that will be cheered by the broking industry is the reduction of burdensome red tape. There is a strong possibility that the industry will get its wish.
According to an ABC report, a leaked Treasury document highlighted the possibility of significant red tape reduction as a key outcome of the Economic Reform Roundtable.
Among the recommendations are a pause on changes to the National Construction Code – echoing calls from industry to halt frequent regulatory updates that increase building costs – and the adoption of a national artificial intelligence plan to streamline environmental approvals.
The document also proposes reforms to clear a backlog of 30,000 housing approvals under the EPBC Act.
At face value, these measures appear designed to provide greater certainty for investors and accelerate housing delivery, addressing concerns that excessive regulation is hampering productivity and affordability in the sector.
They would certainly be welcomed by Rod Cross, lending specialist at Coffs Harbour-based brokerage North Coast Lending.
In a recent chat with MPA, Cross said he has seen first-hand how administrative inefficiencies have led to housebuilding bottlenecks on his patch of New South Wales.
“It’s not unusual to see delays of 12 months or more with approvals along the North Coast,” Cross told MPA. “It seems like this is a combination of lack of staff within the local government and, it seems, a fear of actually making decision.”
This is creating a major headache for mortgage brokers in the area.
“It can be frustrating in that there are added delays to funding," Cross said. "You might assess capacity and nine months later when (clients) are ready to build, capacity, policy, and prices have all moved or changed. What was initially a possibility is suddenly no longer a possibility.”
Economic Reform Roundtable: What’s on the agenda?
The Roundtable runs from 19 to 21 August 2025 at Parliament House, Canberra, and is structured into three main days:
Day 1 – Resilience
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Presentation: Productivity trends by RBA Governor Michele Bullock (pictured, left)
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Session 1: International risks, opportunities and trade
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Session 2: Skills attraction, development and mobility
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Session 3: Capital attraction and business investment
Day 2 – Productivity
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Presentation: Productivity and reform by Productivity Commission Chair Danielle Wood
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Session 1: Better regulation and approvals
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Session 2: Competition and dynamism across the federation
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Session 3: AI and innovation
Day 3 – Budget Sustainability and Tax Reform
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Presentation: Role of budget sustainability by Treasury Secretary Jenny Wilkinson PSM
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Session 1: Efficient and high-quality government services, spending and care
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Presentation: A better tax system by Grattan Institute CEO Dr Aruna Sathanapally
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Session 2: A better tax system
