The Australian Industry Group (AI Group) has called for the Federal Government to focus on increasing national productivity in the wake of the Prime Minister’s Economic Forum in Brisbane last week.

 

"We need a major boost to lift our inadequate language, literacy & numeracy levels in the workplace. 75% of employers report that their business is negatively impacted by insufficient language, literacy and numeracy skills,” AI Group’s CEO Innes Willox said.

 

“As well, technology, particularly high speed broadband, has the potential to transform our business models, possibly in ways not yet imagined.”

 

AI Group has called on the Government to focus on the following:

  • Workplace Relations - Ai Group argues that the Fair Work Act needs to be much better aligned with the need for flexibility and productivity if Australia is to manage the competitiveness challenges it faces and take advantage of the opportunities ahead. Evidence shows that workplaces have become less flexible and industrial disputes have increased markedly since the Act was implemented. We have made detailed submissions to the Fair Work Act Review on important changes needed to the Act. Here http://www.aigroup.com.au/link/cS andhttp://www.aigroup.com.au/link/cT
  • Carbon Tax - The Australian carbon price is too high. It is well above levels being paid by our competitors and is likely to remain at comparatively high levels for several years. The impacts of this scheme and in particular, the relatively heavy burden that is being placed on Australia's trade exposed businesses, need to be closely watched. The plethora of additional regulatory requirements relating to greenhouse gases needs to be rationalised across the country.
  • Taxation - We continue to call on all political parties to commit to significant taxation reform including the ambition to reduce the corporate tax rate to 25%. We are keen also to highlight the impacts of the changes to the tax treatment of living away from home allowances and benefits. We are also continuing to urge reform of state taxes.
  • Regulation - Australia must cut back on the burdens imposed on businesses. Compliance with regulation costs time and money and there are many areas where duplication can be removed, where compliance costs can be slashed and where reporting obligations can be streamlined. Success on these fronts would free up resources and help business, particularly smaller businesses, focus more on real business issues rather than on managing the compliance burden.
  • Manufacturing - Industry believes that the response to the current lopsided economic environment must have both short-term and longer-term elements. Short-term is about addressing disadvantages now so the industry gets through intact and can build for a competitive future. Longer-term success will require: