ALVAREZ & MARSAL REVEALS CORPORATE AUSTRALIA’S PRIORITIES FOR DRIVING NATIONAL PROSPERITY
Survey conducted with leading voice in corporate Australia highlights opportunities for collaboration between government and corporate Australia to drive economic growth.
As Australia navigates a complex economic landscape, leading global professional services firm Alvarez & Marsal has unveiled the results of a survey capturing the collective voice of corporate Australia, revealing shared priorities for both government and businesses to drive economic growth and productivity.
The findings come at a pivotal moment, as Federal Treasurer Jim Chalmers recently announced the first tranche of invitees to his productivity roundtable in August and opened the process for submissions—an initiative aimed at addressing one of the most challenging economic levers of the modern era: productivity.
The survey findings highlight a strong willingness for collaboration in four critical areas: targeted investment in infrastructure to boost productivity, holistic tax reform to modernise and simplify the system, co-investment in research and development (R&D) to drive innovation in emerging technologies like generative AI, and streamlining regulation to foster innovation, competitiveness, and inclusion. These priorities reflect a shared recognition of the structural changes needed to position Australia for long-term success.
In addition to these shared priorities, the survey also explored where corporate Australia is focusing their efforts within their own organisations. Key areas of focus include prioritising people and skills development, exploring growth through mergers and acquisitions (M&A), and implementing cost-saving measures to navigate rising business costs.
“The insights from this survey and A&M’s perspective provide a clear and actionable roadmap for how policymakers and corporate leaders can work together to secure Australia’s economic future,” said Andrew Garner, Managing Director & Government Leader at Alvarez & Marsal. “The alignment between corporate Australia’s priorities and the structural changes needed at a government level underscores the importance of collaboration in driving national prosperity.”
Key Findings from the Survey Include:
- Infrastructure Investment: Corporate Australia is advocating for significant investment in infrastructure to drive productivity and create opportunities for growth. Leaders emphasised the need for a coordinated public-private approach, with A&M observing early signs of the private sector’s renewed focus on energy transition and battery projects (BESS).
- Tax Reform: Simplifying and harmonising federal and state taxes, in addition to abolishing stamp duty, is seen as essential to creating a fairer, more competitive environment that attracts investment. One of the most pressing examples A&M is advocating to see tackled is payroll tax. It’s a state-based tax applied inconsistently across Australia, with varying thresholds, exemptions, and rates.
- Co-Investment in R&D: Strengthening support for research and development is critical to positioning Australia as a global innovation leader. The current rate is too low to meaningfully shift investment behaviour. A&M believe that increasing the incentive rate and expanding eligibility—especially for software, AI, and clean tech—would send a strong signal that Australia is open for innovation.
- Streamlining Regulation: Excessive red tape is viewed as a major barrier to innovation and competitiveness, with calls for smarter, more balanced regulatory approaches to enable growth. A&M believes this should include a push for incentives for companies to list on the ASX, such as tax benefits and/or streamlined reporting requirements.
- Corporate Focus Areas: Corporate Australia is prioritising workforce development, mergers and acquisitions, and cost-saving measures to strengthen their organisations in a turbulent economic landscape.
“These findings not only highlight the challenges and opportunities ahead but also reinforce the critical role that corporate leaders play in shaping the nation’s future” added Igor Sadimenko, Country Head & Managing Director of Performance Improvement at Alvarez & Marsal.
