Australia’s productivity growth has averaged just 0.2% a year over the last decade.
Labor’s first budget in 2022 included the assumption that productivity growth would average 1.2% over the long-term. The Coalition contends that annual GDP would be about $250 billion higher if productivity had grown at this pace, while annual tax revenue would have been $50 billion higher.
The Coalition has committed to a new productivity growth target of 1.5% annually if it wins the election on Saturday.
