Business Sydney Reception, Sydney

Acknowledgements omitted
 
Thanks very much for having me. It has been a little over a year since I last spoke to you. And it is always a pleasure to catch up with Sydney’s business community.  

I am a big fan of Sydney. You drive a hard bargain. WA contributes millions in GST and you finally give us the North Sydney Bears. In fact, their home ground will be at HBF Park, in the heart of my electorate.

Of course, what I am here to talk to you about today is not about the east coast or the west coast.  It is about Australia, and how government and business are pulling in the same direction. Towards a stronger, fairer and more resilient economy. One where growth, wages and productivity rise together.

Our government knows this is not something we can do alone. So we are working with businesses like yours to build an economy that works — for every Australian. 


THE DOMESTIC CONTEXT

I consider myself a ‘sometimes’ guitarist. As in, not a very good one!

Still, I am in a band with a few other parliamentarians. A couple of years ago we got to play with The Wiggles. It instantly raised my street cred with my kids. But it also taught me a valuable lesson. You have got to know when you are the headliner and when you are just the warm-up act. 

When it comes to our economy, government is very much the latter. As the Treasurer said, while the public sector has kept the economy ticking over. Our national accounts show the private sector is taking its rightful place as the star of the show.

Since we came to office, new business investment has grown by an average of almost 4 per cent each year. It is a turnaround to be excited about. 

To borrow a line from the PM, right now, 'there’s nowhere you’d rather be than Australia.'

No major advanced economy did what we did last financial year. Continuous growth. An unemployment rate in the low fours. And inflation below 2.5 per cent.

I mentioned our vision for growth, wages and productivity all rising together. Well, we are seeing positive trends on all three. 

Where comparable economies like Canada and Germany went backwards in the last quarter, ours has grown every single quarter for the last 3 years. For context, we are one of only six advanced economies who have pulled that off. We have recorded our strongest real wages growth in five years, too. And productivity is trending upwards over the year.

Despite this progress, we know there is still more to be done. Global challenges like the net zero transition and sustaining progress on inflation continue to demand a collective response. At home, we know our economy needs to be more resilient and productive. And that there are workers and businesses out there under pressure.

But we are also optimistic that, despite global uncertainty, this is a moment of profound opportunity for Australia. And we know we cannot seize it without the support of everyone in this room.


ECONOMIC REFORM ROUNDTABLE

You probably heard 'no-one held back, and no-one left behind' a fair bit during the election campaign. But it bears repeating — because that is the kind of economy we want to build. One where enterprise and hard work is rewarded. And where Australians from all walks of life can expect a fair go.

Last month’s Economic Reform Roundtable was a step towards delivering on that commitment. It brought together representatives from government, business, unions, and civil society. Together, we found ten consensus areas for reform. Covering everything from simplifying trade and tariffs, to better ways of attracting capital, to building a skilled and adaptable workforce. 

But the roundtable was not just about long-term planning. It was also about how to boost productivity right now.

The roundtable also demonstrated the nature of the Albanese Government.

We act thoughtfully, we use evidence-based solutions, and we listen to experts. We will work across government to address barriers to delivery. We will work with the business sector and draw on your expertise and innovation. 


BRINGING PUBLIC SERVICE CAPABILITY BACK IN HOUSE

Last week, the New South Wales Government made the decision to reduce the outsourcing of core work in the public service. I commend them for this initiative.

This follows the leadership shown by the Albanese Government when we introduced the Strategic Commissioning Framework in 2023. The Framework drew a clear line.

In general, consultants should not be used for the everyday, ongoing, essential functions of the public service. Core work should be delivered by public servants who are accountable to the community.

In practice, this strengthens public service capability. Taxpayer money is used to develop lasting expertise inside the APS. Institutional knowledge is retained and endures beyond a single contract. In 2024-25 alone, the Framework achieved over $527 million in savings.  


DREAMING BIG, BUT GETTING THE JOB DONE

There are examples all around us of how to have bold ambition – but still get the job done.

Not far from us stands Sydney’s first skyscraper. The AMP Building at 33 Alfred Street was Australia’s tallest building when it was officially opened in 1962. Next to it at the time were awning-covered low-rise shopfronts – hard to believe if you take a walk around Circular Quay today!

It took vision to look at that streetscape as it was, and dream of what could be. The AMP Building stood out not only for its height, but the speed of its construction. Built in just 21 months, the architect said it was equal to the fastest construction time for a building anywhere in the world. 

It also broke barriers in innovation. The use of seawater cooling and new methods of fire safety for tall towers were among global firsts. The workers delivered at pace, combining ambition with innovation. 

We did it in 1962. We can do it today.


DELIVERING FOR BUSINESS

We have made no secret of the fact we want more Aussies to own a home. We know industry – including some of you here today – have been frustrated by red tape. We want the same thing you do: builders working on homes, not filling out paperwork.

So we are freezing the National Construction Code, while we work to streamline it. Fast tracking environment assessments on more than 26,000 homes. And piloting AI to simplify and speed up the approvals process.

We are also scrapping another 500 nuisance tariffs, on top of the 457 that have already gone. Sweating through summer is something every Australian has felt, whether they are in Coogee, Sydney or Coogee, Perth. 

So, it is no surprise we import more than $58 million worth of air conditioners each year. While the tariff on these raises less than $100,000 a year, getting rid of it will save business more than half a million dollars in compliance costs.

It might sound like a small win, but these stack up. And we know these costs do not just affect business. They can push up prices for workers and their families, too.

We also understand the importance of attracting investment. We want to cut red tape for investors, as well. 

This month, we launched a pilot of the Investor Front Door. The Front Door will help investors and businesses navigate approvals processes, and, where possible, fast‑track major projects.  Ultimately, making it quicker and easier for investors to back big projects. Whether that is in homes, energy, or essential infrastructure.

I mentioned AI a little earlier, and we are moving on that front, too. We know we need to balance the productivity benefits of AI, while also protecting against its risks.

Following the roundtable, we have committed to accelerating our National AI Capability Plan. And, through our AI Adopt Centres, we are helping small-to-medium sized business adopt AI tools. 

Already, we are seeing more Australian businesses using AI to boost productivity. And we will keep helping workers to upskill in new technologies, unlocking innovation, boosting competition and making it easier to start and run a business.

Naturally, there is more to come. Building a better economy is not a task for one roundtable or budget cycle. And we know our job is to pave the way for private sector investment and growth — not replace it.

In economic terms, we have strummed a few chords. Now, we are throwing it to you to fire up the Big Red Car. 


NET ZERO OPPORTUNITIES

I have mentioned the importance of building a more resilient economy, and the global transition to net zero has given us a golden opportunity to do just that. 

Through our Future Made in Australia agenda, we are boosting our self-reliance and safeguarding against future shocks.

I know some in the east like to say ‘WA’ is short for ‘Wait Awhile.’ But it really stands for ‘Welcome, Albo.’ I am serious — the Prime Minister has visited almost 40 times. We cannot get rid of him.  

It makes sense — my home state is a big part of our plans. We are rich in the critical minerals and rare earths the world needs for its clean tech. But there is a reason we talk about A Future Made in Australia. Because it is an agenda that is as much about hi-tech as hi-vis, and it relies on the investment, research and development, innovation and training that comes out of places like Sydney.

There is an example I would like to share here. One of your members, the University of New South Wales, invented the PERC solar cell. Today, it powers almost three quarters of the world’s solar panels.

In 2013, two UNSW alumni founded 5B solar in Sydney. 5B created the ‘Maverick’ automated deployment system, which has the potential to dramatically speed up solar farm construction.

What’s more, through their Adelaide production facility, 5B has helped workers from the car industry use their skills in a new field. 

To quote one: 'I’ve gone from building fast cars, to building solar farms at speed.'

We are backing companies like 5B to keep growing. In May, ARENA committed up to $46 million to 5B through our Solar Sunshot initiative. It is an investment that will not just help us get to net zero. As global demand for renewables grows, it is an investment in our economic resilience. Our place in the solar value chain, and in the jobs and opportunities that will come with it.

There is more to the agenda than this, of course. From incentives for domestic critical minerals processing and refining. To building a green metals industry. To investing in research and development, quantum computing, and more. But 5B’s example is a great illustration of what we are doing. 

Leaning into our advantages — from our world-class research and development, to our skilled workforce. Making more things here. Working with business and industry to bring jobs and opportunity to every part of the country. And building a more competitive and diversified economy in the process.


CONCLUSION 

This is a defining decade for Australia. Together, I am confident we can set a course to becoming a more productive, dynamic, and equitable nation.

I will leave you with a final thought. Our government’s search for good ideas did not begin and end with the roundtable last month. In fact, we are always looking for them. 

Sydney has shared the Bears with Perth. And showed Australians how to dream big and bold – while getting on with the job - with the AMP Tower. I hope you will share your big and bold ideas in today’s discussion, too. And the Albanese Government looks forward to working with you to get the job done.

Thank you very much.
 
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