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13/04/2026
As we head into the final weeks before the Federal Budget is delivered, I was interested to see the Prime Minister’s comments over the weekend hinting at what to expect.
Tax changes to reduce the generosity of discounts on some capital gains seemingly remain on the table. Like others, we are keen to see sustainable, broad-based tax reform that increases the return on education, work and investment in productive assets. We hope this Budget will provide a downpayment on larger-scale reform that sets Australia up for future prosperity.
Both the spending and revenue sides of the Budget will need addressing. On this front, it was disappointing that means testing appears to be off the table for the NDIS. Given the scale of the NDIS and the need to contain spending to maintain fiscal sustainability and community support for the program, means testing would provide a clear and predictable signal to participants on access.
Without means testing, it is less clear how spending can be transparently reined in, given the challenges that seem to have beset the system and the difficulty in assessing individual needs under the scheme.
Targeted and means-tested government programs have been an important element of Australia’s progressive tax-transfer system and help to ensure we can provide care and support for those in need when they need it – a crucial plank of Australia’s social compact. As government spending has grown across many areas, however, it has become less well-targeted and has led to a heavier tax burden on many. This seems neither efficient, fair or sustainable.
Last week, we released our latest research report, Hustling, not hiring: why fewer Australians are starting a business, showing that while many Australians want to start their own business, rates of business formation have slowed and the share of business owners in the workforce is at a record low.
New business formation is an essential part of a dynamic economy and a driver of innovation and productivity. Australia should be concerned about the long-term trends identified in our research and do more to address the barriers to entry and burdensome regulation that are deterring would-be entrepreneurs.
This report builds on earlier Progress 2050 work, including our reports on rising industry regulation and building a more seamless Australian economy. Together, this body of work is intended to sharpen the national conversation and advance practical, evidence-based reforms that can lift Australia’s competitiveness and resilience over the decades ahead.
On the geopolitical front, higher and more volatile energy prices are likely to be with us for longer given the failure of negotiations around a permanent ceasefire in the Middle East. There is understandably a lot of interest in and concern about the energy and economic outlook at the moment.
On April 20, our upcoming livestream Australia’s Fuel Security: Risks, Resilience and Response will provide an opportunity for members to learn more from those who are following these issues closely.
More broadly, there are different views on what the war means for the longer-term climate and energy agenda. Our fourth annual Climate and Energy Summit provides a timely opportunity to engage with a range of experts on these topics.
To delve deeply into these and other issues, CEDA members also have exclusive access to our Communities of Best Practice on ESG and AI. To join, members just need to register for any of our upcoming community events – it's completely free of charge.
Your teams can also access our private LinkedIn groups where we share resources, webinar recordings and upcoming events.
In other CEDA news, last week, we released an update to our website that makes it easier to navigate and to register for events. Thank you for your patience and support over the last few months as we implemented this project.
And I’m looking forward to being in Perth later this week for a full calendar of meetings with CEDA members.
To finish, I would like to warmly welcome Minderoo as new CEDA members. Thank you for joining us.