It's great to be speaking to Gen P. A generation with enough optimism to believe we can boost productivity and fix housing and decarbonise the economy - all before lunch. I like your ambition.
Let's talk about productivity. Not in the abstract, economic‑model kind of way - but as the thing that quietly shapes your lives, your wages, your choices, your future.
Productivity growth is how we produce more value with the same effort. It's what allows wages to rise, governments to invest in public services and societies to lift living standards without just working harder or longer.
But right now, Australia has a productivity challenge.
When the Albanese government came to office, we inherited the sharpest quarterly fall in productivity in 45 years. In the June quarter of 2022, labour productivity dropped by 2.4 per cent - the worst result since 1979. But this wasn't just a blip. Over the decade to 2020, labour productivity growth averaged just 1.1 per cent a year - the slowest in more than half a century, and well below the long‑run average.
That matters, because productivity growth is what gives us the breathing space to be generous. It's how we fund Medicare, pay teachers well, and build a more sustainable economy. If we let it stall, we're left fighting over a pie that isn't growing - and no one wants to be the Treasurer at a cake sale with no cake.
So how do we respond?
Some argue the answer is to cut wages and working conditions - make jobs more precarious, workers more replaceable. But there's no evidence that turning up the pressure makes the machine run better. Australia's prosperity wasn't built by squeezing workers - it was built by backing them.
The most important lesson from past productivity booms - whether it was postwar manufacturing, agricultural transformation or the digital lift of the 1990s - is that policy matters. Productivity isn't magic. It's made - by the institutions we build, the investments we make and the rules we set.
So what does a forward‑looking productivity agenda look like?
Of course, it includes the classic levers - investing in education and skills, encouraging innovation, upgrading infrastructure, and supporting research and development.
But beyond those foundations, a modern productivity agenda must also focus on 3 priorities.
First, cut the clutter. Across housing, clean energy and research, it has become too hard to build, too hard to connect and too hard to innovate. We need to speed up approvals for infrastructure, simplify grant applications and reduce pointless paperwork. In some cities, it's faster to build a house in Minecraft than to get one approved in real life.
If we want more homes, more solar farms and more breakthroughs, we need systems that say yes more often - and sooner.
Second, strengthen competition. When markets work well, it's easier for challengers to enter and for good ideas to rise. But in recent decades, many Australian markets have become more concentrated, less dynamic. That's why we're reforming merger laws - to stop anti‑competitive deals before they do damage.
We've revived National Competition Policy to drive reform across the states and territories. And we're legislating a ban on non‑compete clauses - those fine‑print contracts that stop nearly 1 in 5 workers from changing jobs or starting a business. It's like being told you can leave the party, but only if you promise never to dance again.
A more competitive economy means more innovation, better services and a fairer go for entrepreneurs - including the ones who are still working on their ideas in uni libraries and spare bedrooms.
Third, embrace experimentation. In business, that means A/B testing. In policy, it means running randomised trials, linking datasets and evaluating what actually works. We're applying this in government - not to replace judgment, but to improve it. A culture of experimentation helps us learn faster and scale smarter.
That brings me to artificial intelligence - a tool that holds enormous promise, if we use it wisely.
AI can help boost productivity by automating repetitive tasks, expanding access to knowledge and supporting decision‑making. But it also raises big questions. Who benefits? Who bears the risks? Will it make work more meaningful - or just more monitored?
The answer depends on how we shape the technology - not just in code, but in law, culture and ethics. Governance matters. Inclusion matters. And so does the presence of people like you - bringing diverse perspectives to the table.
If AI is going to help us all, we can't leave it to be designed solely by 40‑something men named Sam.
This is why your generation's voice is so vital.
Young Australians aren't just economic participants - you're designers, organisers, builders and critics. You're entering the workforce at a moment of transformation. And you deserve to help shape the institutions and ideas that define what comes next.
It's easy to look at Australia's productivity slowdown and feel daunted. But we've overcome bigger challenges. What matters is that we act deliberately. That we build systems that reward creativity, invest in people and allow good ideas to rise.
Productivity should never be an excuse for cuts. It should be a platform for growth - not just in GDP, but in wellbeing, in equity, in ambition.
So let's rethink how we measure value. Let's make room for smart risk, good policy and big ideas. And let's build a future where doing better - together - is the most productive thing of all.
Thank you.
