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Treasurer Josh Frydenberg will call on companies to do more to increase productivity while signaling "pragmatic" changes in the labor relations system.
Frydenberg will use an address in front of the Business Council of Australia in Melbourne to urge companies not to return additional capital to their shareholders or use it to invest in new technologies, reports The Australian.
If the country's productivity level goes from 1.1% to 1.5%, it will ensure economic growth over the next 10 years and increase workers' wages, says Frydenberg.
"Our productivity growth over the past decade has slowed down and we can not just rely on high commodity prices to increase national income," the paper said in a draft of Frydenberg's speech.
"What is under our control is our ability to influence productivity with appropriate policy parameters and business practices.
"If we regain our average annual productivity growth of 1.1% to 1.5%, annual per capita income will be $ 3,000 higher by the end of the decade." GDP growth and real wages will also be 4% higher – overall saving $ 70 billion – that's a lot to play. "
He says stock repurchases and capital income have become the default option for large companies, but he wonders if this is the best solution for future growth.
A Treasury survey shows that nearly 95% of Australian companies have not improved their productivity in 15 years, while exceptional dividends and redemptions, worth several billion, have become the norm.
"If we want to create new jobs and allow people to earn more for what they do, companies need to increase capital spending and adopt new technologies and business practices that effectively integrate capital into the hands. -d "work," he said.
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