Firm action is needed now to remove unnecessary regulatory burdens on business and incentivise US investors to choose Australia as their preferred destination. This report outlines practical recommendations to remove these burdens and drive forward the Government’s deregulatory agenda.
Foreign investment plays a vital role in Australia’s economic prosperity by bridging the gap between what Australia saves and invests every year (equivalent to ~4 per cent of GDP on average over the last few decades). The success of the US and Australian economies are particularly intertwined, with US activity in Australia contributing around seven per cent of our total annual economic output. In 2021 widespread uncertainty from a confluence of events - most notably the COVID-19 pandemic - has motivated businesses to reevaluate their organisational structures and foreign operations. Australia should capitalise on this changing environment to position itself as a prominent destination for US investment and to increase our share of outward US investment, particularly in the Asia-Pacific region.Download the report
The urgency to act now is exacerbated by issues closer to home. These include plugging the fiscal gap left by unprecedented fiscal and revenue measures, encouraging investment to address sluggish productivity growth, and geopolitical developments in the Indo-Pacific region.
The Government’s identification of deregulation as a key focus area, and the establishment of the Deregulation Taskforce within the Department of Prime Minister and Cabinet, is welcome. COVID-19 has seen greater urgency and the application of pragmatism in cutting through red tape and further regulatory reform can attract increased investment from our trusted, strategic ally, the United States. The direct costs of compliance with regulation across Australia is equivalent to around 5 per cent of GDP every year - Australia can’t afford to get regulation wrong.Download the report
Our new report together with The American Chamber of Commerce in Australia outlines practical recommendations to reduce regulatory burdens to US investment, driving forward the Government’s deregulatory agenda and supporting the country's post-COVID-19 economic recovery.Download the report
A wide range of areas of importance to US investors was considered before settling on a short list of practical changes with the capacity to effect meaningful change, fast, for US investors in Australia. We propose the Government should prioritise a change in regulatory culture and a series of micro-reforms to reduce red tape which hampers investments.