June 2025

Would a corporate tax cut boost productivity in Australia?

Isaac Gross, Lecturer in Economics, Monash University The first term of the Albanese government was defined by its fight against inflation, but the second looks like it will be defined by a need to kick start Australia’s sluggish productivity growth. Productivity is essentially the art of earning more while working less and is critical for driving our standard of living higher. The Productivity Commission, tasked with figuring out how to get Australia’s sluggish productivity back on track, is pushing hard for corporate tax cuts as a key part of their plan for building a “dynamic and resilient economy”. The idea? Lower taxes will attract more foreign investment, get businesses spending again and eventually boost workers’ productivity. Commission chair, Danielle Wood, said last week while the commission wanted to create more investment opportunities, it was aware this would hit the budget bottom line: So we’re looking at ways to spur investment while finding other ways we might be able to pick up revenue in the system. The general company tax rate is currently 30% for large firms, and there’s a reduced rate of 25% for smaller companies with an overall turnover of less than A$50 million. What the textbooks and other countries tell us The Productivity Commission’s theory makes sense: if you make capital cheaper and you should get more of it flowing in. A larger stock of capital means there is more to invest in Australian workers. This should make us more productive and help boost workers’ wages. And looking overseas, the evidence mostly backs this up. A meta-analysis of 25 studies covering the US, UK, Japan, France, Germany, Canada, Netherlands, Sweden, Italy, Switzerland, Denmark, Portugal and Finland found every percentage point you slice off the corporate tax rate brings in about 3.3% more foreign direct investment. Other research shows multinational companies really do move their operations […]

Do or die: Why “transformation at scale” is now a must for Australian manufacturers

By Paul Eastwood Australian Managing Partner of global management consultancy, Argon & Co Australian manufacturers can’t survive on a BAU basis. The game has changed and it’s no longer about incremental improvements in the world of manufacturing – it’s about transformation at scale. So this is a wake-up call for CEOs: if your factories don’t have key capabilities embedded in their operating model, your business could be obsolete before the decade is out. And the reason for this relates to a number of coalescing factors. Stiff competition from countries with lower labour costs and larger industrial bases – think China, India, and Vietnam – combined with Australia’s high wages, energy costs, and regulatory burdens are creating enormous cost pressures. Only transformative changes like automation, digitisation, or shifting to advanced manufacturing can offset these pressures. Events like COVID-19 exposed Australia’s weak sovereign capabilities, and occurred at roughly the same time that sustainability demands shot up from consumers, investors, and governments. Both of these factors call for reimagined supply chains, not just optimising existing ones. And massive technology shifts caused by the rise of Industry 4.0 and innovations based in AI, robotics, IoT, and 3D printing mean the industry is evolving fast. There’s no time to watch and see. Because in just a short time, the winners and losers within the manufacturing sector will become apparent. But it’s not all doom and gloom. If you want to be a technology winner – one with an intelligent, connected and adaptive factory – there are five pillars that aren’t just operational enhancements but strategic imperatives. Below are the five key elements that separate future-ready enterprises from those still playing catch up – i.e. the losers. Master Data At the foundation of every digital transformation lies one critical asset: data. And not just any data. […]

ON Accelerate 9 showcases national innovation potential in deep tech

CSIRO, Australia’s national science agency, celebrated the progress and achievements of its latest ON Accelerate cohort at a showcase in Melbourne yesterday. ON Accelerate tackles the barriers that hold deep tech research back, fast-tracking breakthrough ideas into real-world applications and market-ready ventures. The showcase highlighted the incredible strides made by the 11 deep tech teams since the three-month program began in April. Each team was selected for their groundbreaking solutions and ideas at the cutting edge of technology, including drug development, healthcare delivery and sustainability. The ON Accelerate 9 cohort has collectively reached several key milestones, including over $33.8 million in grant funding and capital investment, demonstrating their potential to address critical market needs and drive financial progress. Each of the 11 teams achieved technology validation through the program, with their accomplishments ranging from advancing novel medical treatments and diagnostic tools to developing sustainable industrial solutions. Dr Jen Taylor, Executive Director of Future Industries at CSIRO, highlighted the impact of this year’s cohort in industries vital to Australia’s future, including biotech and healthcare innovation. “We’re incredibly proud to support the next wave of Australian researchers endeavouring to solve society’s most critical challenges,” Dr Taylor said. “Establishing connections with the broader innovation ecosystem, including mentors, investors and customers, is crucial for success, yet no easy feat, and continues to be a key barrier impacting Australian research translation. “We’re committed to breaking down these barriers and unlocking pathways for success, ensuring this cohort continues on its impressive growth trajectory to boost Australia’s global research competitiveness and contribute to future economic growth.” Dr Brennan Mills of I-VADE, from Edith Cowan University, was announced as the ON Accelerate 9 recipient of the esteemed 2025 Stanford Australia Foundation Hawkins Ueland & CSIRO ON scholarship. The scholarship offers an ON Accelerate alum the opportunity to […]

Got Solar? Share the power: National energy trial needs volunteers

Australians with rooftop solar are being invited to take part in a first-of-its-kind research project exploring how communities can buy and sell clean energy directly with each other. Led by Deakin Business School, the Virtual Energy Network (VEN) study is testing how households and small businesses can benefit from peer-to-peer energy trading – allowing those with solar or battery systems to sell their excess energy to others who don’t have solar but want to access greener, cheaper power. ‘This is a potential game changer for how we share renewable energy,’ said Dr Andrea La Nauze, the project’s lead researcher and an energy economist at Deakin University. ‘It’s about empowering people with solar to decide where their surplus power goes and how much they charge for it, while giving more Australians access to clean energy – even if they can’t install panels themselves.’ The trial is now recruiting 400 participants from across Australia, including individuals and community groups, to join an online platform where sellers and buyers of energy can connect based on pricing preferences. Participants don’t need to live in the same suburb – or even the same state – but they do need to be with the same energy retailer. Sellers could include households, small businesses, or even larger operations with multiple properties. For example, parents could share their excess energy with their children or other extended family members to help with cost-of-living pressures. Buyers, meanwhile, can benefit by accessing power that’s cheaper than typical electricity prices, while supporting local renewable energy use. The VEN trial is funded through Energy Consumers Australia’s Grants Program and delivered in partnership with QuantumNRG, ReThink Sustainability and WinZero. Dr La Nauze said the project was inspired by a successful community-led energy trading initiative in Wingecarribee, NSW, and could help lay the foundation for […]

Kemppi Australia launches 2025 Art of Welding Competition

Kemppi Australia has officially opened entries for its 2025 Art of Welding Competition, a unique event celebrating creativity in metalwork. Participants are invited to showcase their welding artistry through sculptures, patterned designs, motifs, or crafted objects. Entries can be created using traditional manual welding or advanced techniques such as robotics, lasers or friction welding. Now in its sixth year, the competition continues to attract a diverse mix of professional artists and enthusiastic amateurs. “It’s inspiring to see artistic talent thriving not only among seasoned metal artists but also welders, apprentices, educators, and hobbyists,” said Stuart Orr, Sales Director, Kemppi Australia. The 2025 competition also includes a dedicated amateur category. Entrants can win from a pool of four outstanding prizes which includes a specific prize for the amateur category. Winners will receive top-tier Kemppi welding gear, including helmets, apparel, gloves, and cutting-edge equipment. Open to residents of Australia and New Zealand aged 18 and over, the competition runs until Tuesday, 30th September. For entry details, visit Kemppi Australia on Facebook, Instagram, or LinkedIn, or reach out via direct message on social media. Alternatively, email skettos@skettos.com.au for a copy of the competition flyer.

Riviera awarded Apprenticeships Leadership Medal

Riviera, Australia’s largest and most awarded luxury motor yacht builder, is proud to announce it has been recognised with the prestigious Australian Apprenticeships Leadership Medal 2025. The honour was awarded to Riviera’s Apprentice and Training Manager, Keira Badke, at the inaugural Manufacturing Industries Group Apprenticeship Scheme (MIGAS) Apprentices & Trainees Stakeholder Event, held in Brisbane during National Apprenticeship Week. This accolade acknowledges Riviera’s commitment to training and mentoring the next generation of marine industry professionals – a commitment that is embedded in the company’s DNA and exemplified with the opening of The Riviera Academy of Excellence. In January 2024, Riviera launched its Academy of Excellence, a 680-square-metre, purpose-built training centre. The Academy houses two fully operational workshops, dual learning hubs, a dedicated drafting room, offices, and meeting spaces. It currently supports 128 apprentices, who are mentored by some of Australia’s most skilled boatbuilders, marine engineers, electricians, and upholsterers. “Never stop learning; never see work as a dirty word; never stop believing in yourself” – these powerful words, displayed prominently on the walls of the Academy, echo the philosophy of Riviera owner Rodney Longhurst, who began his career as a carpenter and joinery apprentice. His personal journey – from apprentice to owner of one of the world’s leading luxury yacht builders – serves as daily inspiration for all at Riviera. “They really are the master craftsmen and women of the future and from their very first day with Riviera we want our apprentices to know that we will do all we can to help them be the best they can be,” Keira Badke says. Beyond technical training, apprentices also participate in the Riviera Propel Program, which equips them with life skills, including personal growth, financial literacy, responsibility and teamwork – fostering success in all aspects of their life. “Our tremendous investment […]

AREMA calls for urgent reform on incentives for hot water heat pumps

New South Wales and Victoria, supported by initiatives taken by the Commonwealth Government, created bold programs to support electrification and net zero through providing rebates to home and business owners that install hot water heat pumps. While well intentioned, there are major flaws within these programs, including: Safety – some of the equipment on the market have inherent risks and are being installed by an untrained cohort. Performance – some of the hot water heat pumps for sale simply do not give the electricity savings and hot water indicated. Fraud & waste – unscrupulous and untrained people are selling and installing poorly made and designed products to an unsuspecting population to obtain the incentives. Industry has been engaging on these issues with governments, for the last couple of years, but there remains no certainty that significant reforms are forthcoming. AREMA argues that if reform is not possible over this year, then the incentive programs in place now should be put on hiatus until these issues are resolved. So what needs to happen? Product standards for safety and minimum energy performance needed to be in place. We are still waiting for these to be developed, implemented and put into regulations. The trade needed to be trained and licensed. The knowledge and skills needed includes both plumbing and refrigeration expertise. The licensed plumber and fridgies out there needed to have their skills lifted before these programs recommence. There needed to be a robust compliance regime to ensure questionable products and people are kept out the market. To be clear, there are well-engineered hot water heat pumps on the market from all over the world, that are being installed by competent and experienced technicians. These products deliver hot water efficiently and with a markedly reduced electricity bill and lower emissions Sadly, these products […]