CEO Update: Productivity depends on getting migration and investment settings right

My recent visit to Western Australia was a reminder of the state's economic vibrancy and forward-looking outlook. State final demand grew 1.0 per cent in the June quarter, more than three times the national result and second-fastest among the states. Talking to CEDA, Premier Roger Cook outlined his vision for Perth as a global capital of the Indian Ocean Rim.

The Premier had a direct message on migration as well: WA needs more people to build homes, expand the workforce and grow the economy. It was a forward-looking case for migration as part of the state's economic identity.

CEDA members increasingly express concern that the prioritisation of applicants already in Australia, together with slower processing, could become a handbrake on business growth and productivity. 

Migration policy must earn and maintain public confidence, including in terms of the adequacy of housing and infrastructure, while also delivering the skills Australia needs to innovate and grow; particularly as energy transition, emerging technologies and population ageing drive demand for new skills and workers. 

In the care sector, possible changes to migration settings may add yet more strain to a sector increasingly under pressure. 

The Government's 2.55 per cent increase in the Australian National Aged Care Classification price has caused anxiety among providers, many already under significant financial pressures, who say the increase will not keep pace with wages and costs. CEDA members have contacted us with concerns about these changes. 

The sector wants to invest in more beds and facilities, but sustainable funding and reliable migration pathways are necessary to build and staff them. Quality care and dignity for older Australians are central to our social compact; funding and workforce settings must reflect that responsibility.

One year on from the Federal Government's Economic Reform Roundtable, the latest national accounts show GDP per hour worked fell by 0.2 per cent over the year. Business investment remained elevated, driven in large part by data-centre construction. That investment is welcome, but this capital deepening alone will not deliver the sustained lift in productivity that Australia needs.

AI's larger dividend will come from adoption across the economy. That requires leadership, workforce capability, redesigned processes and regulation that supports responsible use and innovation. Done well, AI can create higher-value work, new industries and sustained productivity and job growth. 

With some of the world’s leading AI figures reigniting debate over the pace, governance and risks of AI development this weekend, the questions facing business and government are becoming increasingly urgent. Join us at CEDA’s AI Leadership Summit 2026 on October 27 in Sydney to explore how Australia can harness AI’s opportunities while navigating the challenges of leadership, regulation, productivity, skills and responsible adoption.

CEDA’s Care Workforce SA event in Adelaide on September 22 will explore how South Australia can build a stronger workforce pipeline, improve workforce mobility, and prepare for future needs across the state’s care economy.

Join us to hear The Hon. David Crisafulli deliver his 2026 QLD State of the State address on October 19 in Brisbane, outlining priorities for the year ahead, the State's economic outlook, and the Government's key initiatives, as well as how business can collaborate with the Government to bring these to life. 

Welcome to our newest member Gallagher Bassett. Thank you for joining us.