CEO Update: We can't delay tough decisions on long-term reforms

Today’s National Cabinet meeting was a reminder that in uncertain times, clarity matters. We welcome a co-ordinated, practical approach to keep Australia open and the economy moving.

Higher prices for inputs and the cost to transport them are adding to strain on both households and businesses, putting pressure on governments to provide financial support.

And while the immediate focus has been on fuel, expect to see supply constraints emerge in unexpected places, as obscure but critical commercial inputs struggle to find their way to our shores. The Gulf supplies around a third of the world’s helium, an essential component in producing semiconductors. Sustained disruptions could dampen activity for our nascent data centre rollout.

Government responses to-date include free public transport in some states and a temporary cut to fuel excises. But governments are in a constrained fiscal environment and will have to make hard choices.

In his recent address to the Australian Business Economists, Treasurer Jim Chalmers argued that inflation, productivity and global uncertainty were colliding in ways that make disciplined budgeting more important, not less.

This is a crucial point. When shocks hit, previous decisions determine how much room you have to respond. Higher debt means less fiscal headroom. The trade-offs are real.

From CEDA’s perspective, there is a case for governments to play an active role in resilience as the world becomes less predictable. We need to be more proactive about what Australia is exposed to, and more deliberate about the capabilities we want to retain and build.

But this crisis should not be treated as a pretext for permanent intervention across the economy. Not surprisingly, we argue for intervention to be clear, transparent, disciplined and tied to genuine public value. Notwithstanding the understandable focus on the shocks and disruptions caused by the war in Iran, we remain focused on what’s required to enable greater business activity, dynamism and innovation in Australia.

The importance of this is underscored by research that we will release later this week, which shows dynamism remains a challenge. The Treasurer is right to delay final decisions until closer to budget day as the global picture and risks evolve. But we need a serious agenda to lift productivity, improve the return on work and investment and strengthen long-term dynamism.

It is encouraging to see that research and development is back on the agenda. The release of the Ambitious Australia R&D review this month points to a forward-looking debate about capability, innovation and competitive advantage.

Central to the review’s ambitions of unlocking deeper investment and sustained innovation is the need for greater coordination and simplification of yesterday’s systems – key themes that CEDA has previously advocated for in our Seamless Economy work. On that note, I’m looking forward to meeting with representatives from AI firm Anthropic later this week in Canberra to discuss AI opportunities in Australia.

On the CEDA stage, join us for Trust amid insularity, an in-depth briefing on the 2026 Edelman Trust Barometer. Explore the report’s key insights, what the results mean for Australian workplaces, and how leaders can respond to strengthen trust, cohesion and performance. These events will take place in Sydney on April 14 and in Brisbane on April 15.

Early-bird registrations close tomorrow for our 2026 Climate and Energy Summit in Melbourne on 30 April. Hear from business, government and energy-sector leaders including Climate Change Authority Chair Matt Kean and Victorian Minister for Climate Action, Energy and Resources Lily D’Ambrosio. The summit will explore how Australia can accelerate the shift to a net-zero economy while strengthening resilience and unlocking new opportunities. Secure your place now.

And in June, hear from leaders shaping Australia’s growing defence‑tech economy. As geopolitical tensions intensify, Australia faces a critical set of choices on the technologies reshaping modern conflict and commerce. Join us for Building the new defence-tech economy in Perth on June 23 and in Adelaide on June 29.

To finish, I would like to warmly welcome Intium as new CEDA members. Thank you for joining us.