Government Summit Urged to Prioritise Well-being Over Pure Growth

Think tank advocates for a human-centric approach to economic reform

As Australia prepares for a pivotal productivity roundtable, an independent think tank is urging the government to centre its agenda on improving people’s lives, not merely economic indicators.

Measuring Success Beyond GDP

The Centre for Policy Development (CPD) suggests that tackling critical issues such as climate change, inequality, the cost of living, housing affordability, and environmental degradation should define the success of upcoming economic discussions. This perspective contrasts with a singular focus on boosting economic activity for its own sake.

The organisation’s intervention comes as various stakeholders, including employer groups, unions, civil society organisations, and political figures, prepare to present their priorities to Treasurer Jim Chalmers at the productivity summit later this month.

Amidst these diverse demands, CPD chief executive Andrew Hudson stressed the need for a balanced outlook.

“We shouldn’t assume that productivity gains will automatically translate into better lives. If we want a stronger economy that actually delivers for people, we need to make that the explicit goal – not just a hopeful by-product.”

—Andrew Hudson, Chief Executive, Centre for Policy Development

Proposals for a People-Centric Economy

Hudson has advocated for specific policy shifts, including rebalancing the tax system to lean more on rents, consumption, and wealth rather than income. He also called for enhanced support and streamlined approvals for clean energy projects and a focus on improving productivity within the care sector.

The CPD report highlights that productivity is often poorly measured in crucial sectors like health and aged care. This can lead to detrimental patient outcomes if providers cut staff in a bid to boost efficiency metrics.

These recommendations surface as the Productivity Commission is set to release its fourth interim report, focusing on upskilling Australia’s workforce, ahead of the August 19-21 roundtable.

Government Stance on Reforms

Prime Minister Anthony Albanese has managed expectations regarding the immediate implementation of major outcomes from the summit during the current parliamentary term, a stance the opposition has interpreted as a divergence from the Treasurer’s objectives.

However, Deputy Prime Minister Richard Marles has refuted any suggestion of internal disagreement, implying that significant tax reform discussions would likely be reserved for the next election cycle.

“They’re on the same page,” Marles asserted on Sunday, reinforcing that the government’s current tax policies reflect those presented during the election campaign. He added that the nation needs to boost productivity and that the summit should not have its ideas constrained.

The Australian government aims to increase national productivity by 2% annually, a target that would add billions to the economy. However, progress towards this goal has been slow, with productivity growth averaging less than 1% per year over the last decade, according to the Australian Bureau of Statistics.