CEO Update: Australia needs a more dynamic business environment

As members may be aware, I have been chairing the Federal Government’s Expert Council on University Governance since the beginning of the year. I have been pleased to be a part of this important work. Our public universities are critically important to enabling future prosperity in Australia for many reasons, and good governance is important to achieving sustainably good performance and outcomes and to building and maintaining trust.

The Council’s report has been received by Education Ministers, who endorsed the principles proposed, with work now to be done to develop an implementation plan. 

Last week I spoke about the council’s work, recommendations and proposed governance principles at TEQSA’s Annual Conference in Melbourne and the UWA Public Policy Institute Higher Education Summit in Perth. I look forward to seeing implementation progress and will continue to be involved in providing advice on how this can best be achieved, consistent with the intentions of the council’s work.

Today, I’m attending the Ministerial Advisory Committee on Skilled Migration. Among other things, I continue to advocate through this group for an essential skills visa for occupations facing severe and ongoing worker shortages in the care sector, starting with aged care. Our recent aged care report shows that the current model of labour agreements is not working, and the sector is struggling to attract and retain enough workers to deliver the quality of care our older Australians deserve.

The IMF released its latest assessment of the Australian economy last week, highlighting that the Australian economy is generally in good shape amid high levels of uncertainty globally. It reiterated many of the longer-term challenges facing the Australian economy – slow economic growth, concerns around productivity, housing supply and government spending. The IMF’s suggestions on the need for tax reform and greater spending efficiency align with CEDA’s contribution to the Federal Government’s Economic Reform Roundtable. CEDA’s research team were pleased to take part in the consultation for the IMF’s Australian outlook.

On regulation, the IMF made the point that “Complex and overlapping regulations across government levels weigh on investment and business operations in multiple sectors, underscoring the need for streamlining and harmonization”. Our recent report Towards a more seamless Australian economy provides a framework for reform at a state and national level. Watch out for our next piece of research in this space, which we’ll be releasing shortly, which quantifies the rise in regulation in Australia in recent years.

CEDA will continue to push for a more dynamic and innovative business environment in Australia, as this is critical to the nation’s long-term prosperity. We have recently welcomed Julie Toth to the team as Principal Economist. Julie will be leading our program of work on business dynamism and innovation, continuing our previous work on dynamic management capabilities, deregulation and a seamless economy.

In Victoria, there has been a change in Liberal Party leadership, with Jess Wilson taking the reins. We’re welcoming Jess straight onto the CEDA stage at a Trustee Roundtable in Melbourne this week, exclusive to members. We look forward to hearing her insights on the economy and engaging on how we can deliver a strong economy and social compact for the state.

It’s a big week for us in Victoria, with Premier Jacinta Allan also taking to the CEDA stage to deliver the 2025 State of the State address on Thursday in Melbourne. Join us to hear the Premier's priorities for the year ahead and the state's economic outlook.  

And in Perth on December 9, hear from West Australian Treasurer Rita Saffioti as she explores what’s at stake for the state’s budget, services and economic future in the Productivity Commission’s review of the GST distribution amid a growing national debate on the issue.

To finish, I would like to warmly welcome CPA Australia and Western Australia’s Economic Regulation Authority as new CEDA members joining us this month.