CPA Australia has warned that the ongoing productivity slowdown in the country is now serious enough to threaten economic growth, competitiveness and living standards.
In a submission to the Select Committee on Productivity in Australia, the accounting body states that the nation’s weak productivity performance is no longer a “slow-burn problem” and requires urgent and coordinated action.
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CPA Australia Business and Investment lead Gavan Ord said: “Australia is running out of time. If productivity continues to stagnate, living standards will go backwards and the economy will struggle to sustain growth.
“This is not an abstract policy debate. Weak productivity ultimately means lower wages growth and fewer opportunities for Australian businesses and workers.”
The submission draws on the body’s recent work with the federal government and the Productivity Commission.
CPA Australia insists that there is no simple solution and that fragmented reforms and “short-term political thinking” have failed to reverse the trend.
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By GlobalDataThe accounting body argues that substantial tax reform is central to lifting productivity.
Ord added: “Our tax system is increasingly complex, uncompetitive and misaligned with where the economy is heading. Continuing to avoid meaningful tax reform is a deliberate choice to accept weaker productivity and slower growth.”
The submission also raises concerns about rising regulatory demands on businesses, particularly smaller companies, and links this to higher costs and weaker productivity.
CPA Australia further cautions that rapid growth in public spending could displace private sector investment and worsen productivity outcomes.
The organisation also points to lagging technology adoption in the country, especially among small businesses, as another structural weakness. It says better targeted support is needed to help operators make effective use of new tools.
CPA Australia says the federal focus on productivity now needs to be matched by a Budget that moves beyond “rhetoric and incremental gains” to long-term reform.
Earlier this month, the accounting body called on the government to use the 2026–27 Budget to reduce regulatory complexity to strengthen Australia’s long-term economic competitiveness.
