Westpac has called for sweeping economic reforms to improve housing affordability, drive growth in regional Australia, and speed up the clean energy rollout, outlining nine key recommendations in a submission to the federal government’s Economic Reform Roundtable.
Set for Aug. 19-21 at Parliament House in Canberra, the roundtable will bring together leaders from business, unions, civil society, and government to build consensus on ways to lift productivity, strengthen the budget, and raise living standards.
In his submission statement, Westpac CEO Anthony Miller (pictured) said Australia’s long-standing reputation as a destination for capital and talent was under threat from mounting affordability pressures.
“Australia is a well-governed, well-regulated country that attracts capital and talent. This has long been the secret to our success – it has been our differentiator and has underpinned the ‘lucky country’,” Miller said.
“However, today the average business owner or family could be forgiven for thinking that our luck is running out. It’s never been harder to run a business, buy a home or pay the power and grocery bills.”
He welcomed the federal government’s initiative to pursue long-term structural reform.
“That’s why, now more than ever, we need to respond to the economic challenges confronting us and remain competitive,” Miller said. “The Australian government is appropriately drawing a line in the sand, and we welcome this opportunity to contribute to the debate, to help find the ideas and practical solutions to grow national productivity.”
Miller said housing affordability remained a key national issue impacting not only families but the broader economy.
“The cost of housing in many cities is making it harder for people to find a home near their workplace or families, increasing travel times and in some cases creating labour shortages,” he said.
“While two thirds of the population own, or are paying off their home, we acknowledge that large sections of the community being priced out of homeownership is neither fair nor good for the economy or our country. It’s not just about building more homes, it’s about building more homes at a price people can afford to pay.”
Among Westpac’s housing recommendations are the use of AI to streamline development approvals, a return to COVID-era deferral of development fees, and national alignment on “deemed approval” settings for state planning systems.
Miller also urged policymakers to rebalance growth beyond Australia’s major cities by investing in regional cities.
“While our biggest cities struggle with population growth, regional Australia, which has always been central to the nation’s prosperity, is struggling to achieve the critical mass of population growth to achieve equivalent levels of economic growth,” he said.
“Regional Australia presents an untapped opportunity, and this is a major priority for Westpac. Now is the time for governments to plan and grow the next generation of Australian cities to speed up economic growth in regional Australia.
“We are a large country, and success will require us to be very targeted in investment to build immediate momentum. This is difficult for elected governments to implement alone, and an example of where the private sector can contribute.”
Westpac proposed identifying up to 10 growth-focused regional cities, targeting one million additional residents by 2032, and leveraging existing infrastructure investment to kickstart expansion.
Delays in infrastructure approvals are holding back Australia’s clean energy goals, Miller warned.
“Similar to some of the issues slowing down new housing supply, Australia’s energy transition is being delayed by too many layers of approval for new infrastructure across local, state and federal government,” he said.
“This complexity is slowing down the delivery of new infrastructure and in some cases undermining our ability to compete with other jurisdictions for investment. We can overcome these issues by giving the states clear targets for energy generation and the autonomy needed to achieve them.”
Westpac recommends setting clear state-level energy generation targets and giving states more authority to streamline project approvals.
To read the full submission, access this Westpac media release.
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