Business Groups Emphasize the Importance of Reducing Red Tape for the Success of the Future Made in Australia Act
The recently announced Future Made in Australia Act has garnered positive feedback from various sectors, highlighting its potential to boost domestic manufacturing and facilitate the transition to renewable energy. However, business lobby groups are urging the federal government to focus on reducing red tape and enhancing Australia’s competitiveness to ensure the country can reap the intended benefits of this legislation.
The act includes a $1.2 billion investment in the Future Made in Australia Skills Plan, which aims to address skills shortages through new university and TAFE places. This initiative has been welcomed by the education industry, with Universities Australia CEO Luke Sheehy emphasizing the central role that universities play in providing highly skilled workers and conducting research and development. Sheehy believes that graduates and researchers hold the key to powering the economy and defining Australia’s success in the coming decades.
The Australian Academy of Technological Sciences and Engineering (ATSE) also supports the Future Made in Australia Act, stating that it will help address Australia’s slowing productivity growth and declining economic complexity. However, ATSE CEO Kylie Walker believes that there needs to be more funding for research and development to ensure that Australia remains at the forefront of innovation. Walker asserts that Australian research and innovation are crucial for future prosperity and should not be neglected.
The Clean Energy Council and Climate Council are among the organizations expressing support for the act, as it aligns with their goals of reducing pollution and advancing clean energy in Australia. Climate Council CEO Amanda McKenzie commends the act’s potential to generate clean jobs and tackle climate pollution, citing similar policies in the United States that have successfully created new employment opportunities. Clean Energy Council CEO Kane Thornton sees opportunities for Australia to expand its economy through areas such as hydrogen, green metals, and advanced clean energy manufacturing and assembly.
However, the Business Council of Australia (BCA) believes that addressing Australia’s competitiveness settings is crucial for the success of the Future Made in Australia Act. BCA CEO Bran Black emphasizes the importance of reducing red tape and incentivizing private sector investment in meaningful projects. The BCA has been urging the government to establish a policy similar to the U.S. Inflation Reduction Act to attract private sector investment into Australia’s clean energy economy. Black also suggests a thorough review of the nation’s foreign investment framework to unlock better overseas capital.
The BCA further calls for the Net Zero Economic Authority, set to commence this year, to play a comprehensive coordinative role in determining project viability, identifying growth markets, addressing workforce skill gaps, and streamlining project approval processes. Additionally, the BCA urges the government not to cut apprenticeship incentives in the upcoming budget, emphasizing the need for a well-trained workforce to manage the energy transition effectively.
The Australian Industry Group (AI Group) raises concerns about industry policy posing a risk to the successful implementation of the Future Made in Australia Act. AI Group CEO Innes Willox highlights the need for clear objectives, well-designed policy instruments, and adaptable administrators to ensure effective implementation. Willox emphasizes the importance of collaboration among partners best positioned to deliver the tasks outlined in the act.
In conclusion, while the Future Made in Australia Act has received positive feedback from various sectors, business groups stress the need for reducing red tape and enhancing Australia’s competitiveness. They emphasize the importance of incentivizing private sector investment, increasing funding for research and development, and ensuring a well-trained workforce. By addressing these concerns, Australia can maximize the potential benefits of this legislation and position itself as a leader in domestic manufacturing and clean energy transition.
