![\"A](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/06\/e18b78ccd5bb842600aaa705e2f97bfd.jpeg\")
Australia’s advantages should have the economy moving at a faster rate, a think tank says. (Dave Hunt\/AAP PHOTOS) <\/p>\nAustralia has the resources it needs to be a globally prosperous economy, but it is failing to convert those assets into meaningful growth, a think tank says.<\/p>\n
Abundant renewable energy, critical minerals, a world-class research sector and ties to the world’s fastest-growing region are among its advantages.<\/p>\n
But it risks falling behind unless governments pursue more ambitious reforms to lift business investment, innovation and economic dynamism.<\/p>\n
These were the findings of the Committee for Economic Development for Australia’s inaugural State of the Nation report, released on Monday.<\/p>\n
Australia’s advantages should have the economy moving at a faster rate, a think tank says. (Dave Hunt\/AAP PHOTOS) <\/p>\n
“We have a strong hand,” the think tank said.<\/p>\n
“However, national advantage does not convert into prosperity automatically, it requires deliberate choice.”<\/p>\n
The report found Australia’s long-term economic performance was weakening across several key measures.<\/p>\n
Productivity growth, business investment and competitiveness were subdued or moving backwards, while housing affordability and disadvantage were worsening.<\/p>\n
“The verdict: Australia is not moving fast enough, and on too many fronts we are drifting,” it said.<\/p>\n
There are worries a slowing property market will hit stamp duty revenue in many states. (Joel Carrett\/AAP PHOTOS) <\/p>\n
Progress has been made on emissions reduction and the renewables rollout but implementation is too slow while AI adoption lags comparable countries.<\/p>\n
Capitalising on those two opportunities would be critical to Australia’s long-term economic and social prosperity, CEDA argued.<\/p>\n
Business entry rates have fallen from 15.1 per cent to 10.7 per cent in two decades, while productivity growth and non-mining investment remain too low.<\/p>\n
The report comes ahead of the Tuesday release of budgets for two of Australia’s state economic powerhouses, NSW and Queensland.<\/p>\n
Following years of successive operating deficits, the NSW budget is poised to remain in the red.<\/p>\n
Business entry rates have fallen in the past two decades, while productivity growth remains low. (Dan Peled\/AAP PHOTOS) <\/p>\n
A slowing property market will hit government coffers where it hurts, with a forecast $5 billion reduction in estimated stamp duty revenue over four years.<\/p>\n
According to e61 Institute analysis, a legacy of excessive spending, volatile revenues and a blistering infrastructure costs are major headwinds for the Queensland budget.<\/p>\n
“The government also wants to maintain services, eschew tax increases and get public debt to more sustainable levels,” chief executive Michael Brennan said.<\/p>\n
“Achieving all these things is proving fraught.”<\/p>\n
The CEDA report also pointed to growing strains on the nation’s social compact.<\/p>\n
Australia’s success requires ambition and clear priorities, says CEDA boss Melinda Cilento. (Diego Fedele\/AAP PHOTOS) <\/p>\n
Housing affordability is worsening while poverty and demand for health and care services are rising in tandem with an ageing population.<\/p>\n","protected":false},"excerpt":{"rendered":"Australia has the resources it needs to be a globally prosperous economy, but it is failing to convert…\n","protected":false},"author":2,"featured_media":751952,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,80244,99929,8268,164,264729,117022],"class_list":["post-751951","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-business-investment","tag-ceda","tag-critical-minerals","tag-economy","tag-meaningful-growth","tag-productivity-growth"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/751951","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=751951"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/751951\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/751952"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=751951"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=751951"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=751951"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}