Australia is heading for another three years of sugar-hit policies bereft of long-term strategy, according to several industry-leading experts.
Australia is heading for another three years of sugar-hit policies bereft of long-term strategy, according to several industry-leading experts.
As Australians heads to the polls tomorrow, RSM partner and government lead Amit Kabra has lambasted what he said was a lacklustre campaign from both sides, and warned some of the most pressing issues look to be going unaddressed.
“While some policies offer relief amid increasing cost-of-living pressures, they do not address underlying issues, highlighting a disappointing lack of foresight from the Coalition and Labor,” Mr Kabra said.
“Both parties have pledged billions in populist measures rather than the wholesale reform required to set Australia up for the future.
Mr Kabra said at a time when Australia needed bold leadership and strong direction, RSM partners from key sectors were struggling to find either.
International trade and immigration
One such partner was chief economist Devika Shivadekar, who said parties needed to look to diversify Australia’s trade options to reduce reliance on China and the United States.
“Whether viewed from the macro level, or drilled down into specific areas, the election pitches do not inspire a great deal of confidence going forward,” he said.
“To not focus on agribusiness is just incredibly short-sighted.
“Nor do we have the migration policies in place to help combat critical shortages in construction, healthcare and other key areas of the economy.”
Mr Shivadekar said the Coalition plan to slash skilled visas by 45,000 was a blunt tool which missed the mark.
“With an ageing population, migration is key to keeping the economic engine running,” he said.
“It is a pillar of growth, addresses labour shortages and supports the education sector.
“Aligning skilled migration with genuine needs, streamlining residency pathways, and integrating policy with housing and infrastructure planning wil help ensure long-term benefits.”
Energy policy lacks power
RSM mining, energy and resources lead Craig Amos said both parties’ energy policies were “dramatically wrong” and that inaction on energy was bordering on creating a crisis.
Labor has flagged its ambition to power 82 per cent of Australia’s grid with renewables by 2030, while the Coalition plans to build seven nuclear power plants across Australia, including in Collie.
“We need to have a long view. If you’re going to have an all-renewable generation source by 2050, you need long duration storage assets,” Mr Amos said.
“Our energy storage solution is largely focused on lithium-ion batteries and in a geopolitical scenario where some 70 per cent of those come from China, there could be all sorts of problems.”
“We’ve had significant net outflow of capital into renewable energy at a time when energy security should be at the top of sovereign agendas. There’s a bifurcation in the market between where capital is flowing in terms of energy and energy demand.”
Mr Amos said rather than focusing on energy affordability, the parties should be focused on energy security.
“We need to solve energy security problems to have a sustainable solution to energy affordability,” he said.
Mr Amos said to achieve this, consultation with industry must be more broadly engaged in.
“At the moment, the government agency is telling the government what the government wants to hear,” he said.
Health policies are band-aid solutions
RSM Health lead Jayesh Kapitan said commitments in health were aimed at winning votes, rather than addressing key issues in the sector.
Labor has committed to spending $8.5 billion on Medicare, aiming to make nine out of 10 consultations bulk-billed by 2030.
The Coalition quickly matched the commitment and provide millions in incentives to encourage junior doctors into general practice.
“They’re trying to entice voters with bulk billing but it’s not necessarily going to translate to an appointment if the doctors or clinic operators are not going to be funded appropriately,” Mr Kapitan said.
“They are promising that nine out of 10 consultations… I can’t see that happening if the GP clinics can’t survive.
“A piecemeal solution is not going to work. If people can’t get to their GP, they end up in hospitals.
“If they decide it’s too expensive to go to the GP, they’ll just go to the emergency department. You have to look at how all the pieces connect to each other to ensure you get good outcomes.”
Housing policy only builds demand
Another partner dismayed at the lacklustre election cycle has been RSM real estate and construction lead Adam Crowley, who said both parties’ policies would only contribute to driving prices up.
Under a Coalition government, first home buyers would be allowed to access $50,000 of their superannuation to help with the deposit.
First home buyers would also be allowed to claim tax deductions on interest payments for new homes for the first $650,000 of the mortgage, for up to five years, if they live in the property.
That scheme would be capped to those earning up to $175,000 for individuals, or $250,000 for joint applicants.
The Coalition has also pledged some $5 billion to build critical infrastructure to support new housing developments – including water, power and sewerage. The Coalition says this would help build 500,000 new homes.
A two-year ban on foreign investors and temporary residents purchasing existing homes would also be put in place, and changes to the National Construction Code would be frozen for 10 years.
Labor has set an ambition target of building 1.2 million new homes by 2029 – 240,000 new homes each year, 20,000 homes each month, or 657 new homes each day.
To do that, a Labor government would set aside $10 billion to build 100,000 new homes reserved only for first home buyers.
“Both of them are inflationary, both of them are just going to drive demand, which will continue to outstrip supply,” Mr Crowley said.
Mr Crowley said both parties had a chance to increase supply by addressing planning hurdles or by reforming GST application in build-to-rent projects.
“When you build an asset and derive residential rent, none of the GST costs on your acquisition and building can be claimed, which means you’re 10 per cent worse off before you get out of the gate,” he said.
The Albanese government’s Home Guarantee Scheme would also be expanded from 2026, allowing any first home buyer – regardless of income or value of the home – to purchase a property with just a 5 per cent deposit, something Mr Crowley was critical of.
“If the government put guarantees in place to help the private sector with funding arrangements to get new projects built, this would help unlock the supply side,” he said.
Coalition edges it on manufacturing
RSM manufacturing lead Louis Quintal said one area both parties had promised substantial support for manufacturing, but the Coalition’s direct tax incentives and grants for machinery seemed to take the cake.
“By investing in roads, public transport, and regional development, they are laying the groundwork for an improved supply chain and better workforce mobility,” Mr Quintal said.
He said Labor’s proposal to lift the minimum wage was unappealing in an unsettled global market.
“It will have a direct impact on the cost of doing business, putting Australia at significant disadvantage with competitors in the Asia Pacific region,” he said.
Mr Quintal said Labor should provide tax cuts to offset rising labour costs.
“There is no solid framework in place to say how they’re going to upskill people to make the manufacturing sector more productive because we just don’t have that technological knowhow, which his very strong in countries like China and India,” he remarked.
