Danielle Wood urges growth mindset as red tape slows Australia’s economy
Australia’s productivity chief, Danielle Wood, has delivered a timely warning ahead of the government’s much-anticipated economic reform roundtable. Speaking at the National Press Club, she argued that Australia’s economic future is being stifled by excessive regulation, a phenomenon she described as “regulatory creep.” Her message was clear: unless governments shift toward a growth mindset, future generations — particularly young Australians — may end up worse off than their parents.
Wood explained that over the past few decades, governments at all levels have increasingly responded to problems by adding new rules and layers of compliance. While often well-intentioned, this accumulation of regulation has made it harder for businesses to grow, slowed down approval processes, and even contributed to skyrocketing housing delays. She highlighted that building a house today takes 50 percent longer than it did three decades ago, not because of construction time, but because of lengthy approvals tied to planning, heritage, traffic, and environmental checks.
Also Read:She stressed that growth must be placed at the heart of policymaking. Without it, wages stagnate, opportunities shrink, and the rising cost of living erodes the standard of living for younger Australians. Many already fear they won’t live better lives than their parents — and Wood admitted she shares that concern. To change course, she said, Australia needs investment in skills, training, and technology, alongside smarter regulation that supports, rather than stifles, economic activity.
Her comments come as 29 business groups, representing companies large and small, have launched a push for government to slash red tape by a quarter before the end of the decade. They argue that it must be easier to do business in Australia if the country wants to attract investment, spark innovation, and solve pressing issues like housing shortages. As one business leader put it, even something as simple as opening a café can require dozens of licences before a single coffee is poured — an absurd situation for a modern economy.
The government, led by Treasurer Jim Chalmers, has positioned this week’s three-day summit as an opportunity to address these challenges. Business leaders, unions, economists, and politicians from across the spectrum will gather at Parliament House to debate solutions. Prime Minister Anthony Albanese is expected to open the discussions, but has already tempered expectations, saying big reforms such as tax changes may not emerge immediately. Instead, the talks are being framed as the beginning of a longer process, one that will shape the next three federal budgets and beyond.
Technology, and artificial intelligence in particular, is set to be another major point of debate. Wood has urged caution against overregulating AI, saying that most risks — from fraud to discrimination — are already covered under existing laws. She warned that rushing to impose new, standalone AI regulations could undermine the very productivity gains the technology promises.
In the end, her appeal was for balance. Growth, she said, should not be sacrificed quietly when weighing other policy goals. Trade-offs will always exist, but unless growth is elevated as a priority, Australia risks falling behind — leaving its young people with fewer opportunities and heavier burdens than the generations before them.
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