Economics Explored

Australia’s Productivity Problem: Can It Be Fixed? w/ John Humphreys, Australian Taxpayers’ Alliance

Episode Summary

Gene Tunny and John Humphreys dissect the causes behind Australia's productivity slump, analysing recent GDP data, labour market policies, and regulatory constraints. They debate whether tax cuts should precede spending cuts and question the effectiveness of central planning and government intervention (i.e. ‘picking winners’) in driving innovation. John is Chief Economist at the Australian Taxpayers’ Alliance (ATA). This episode is the audio of an ATA livestream on 12 June 2025.

Episode Notes

Gene Tunny and John Humphreys dissect the causes behind Australia's productivity slump, analysing recent GDP data, labour market policies, and regulatory constraints. They debate whether tax cuts should precede spending cuts and question the effectiveness of central planning and government intervention (i.e. ‘picking winners’) in driving innovation. John is Chief Economist at the Australian Taxpayers’ Alliance (ATA). This episode is the audio of an ATA livestream on 12 June 2025.

Please email Gene your thoughts on this episode via contact@economicsexplored.com.

Timestamps

• National Accounts and Productivity Concerns (0:00)
• Government's Productivity Roundtable and Regulatory Reforms (4:34)
• Economic Policy and Institutional Reforms (8:19)
• Challenges in Private Investment and Productivity Measures (13:56)
• Industrial Relations and Labour Market Reforms (18:14)
• Housing Market and Regulatory Barriers (22:56)
• Tax Reforms and Fiscal Responsibility (29:59)
• Superannuation Tax Changes and Political Implications (47:15)
• Conclusion and Future Prospects (57:22)

Takeaways

1. Australia is in an 8-year productivity slump, with minimal growth in GDP per hour worked and GDP per capita declining in most recent quarters.
2. The Albanese Government’s proposed productivity roundtable is met with scepticism, particularly due to its unwillingness to touch industrial relations.
3. Private investment remains weak, threatening future economic growth despite government spending and immigration-fueled expansion.
4. Superannuation changes are controversial, especially the proposal to tax unrealised gains and the lack of indexation, prompting fears of unfair treatment of self-managed funds.
5. Regulation, housing policy, and taxation are significant barriers to productivity; both speakers call for serious reform and question whether centralisation in Canberra helps or hinders progress.

Links relevant to the conversation

ATA livestream (i.e. video of this episode):

https://www.youtube.com/live/lDlner_PHc0?si=1M9krIiPwvIcFxLs

ATA website:

https://www.taxpayers.org.au/

Australia’s National Accounts:

https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-national-income-expenditure-and-product/latest-release

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