Speaking ahead of the Albanese government’s upcoming Economic Reform Roundtable, Mulino asserts that the financial services sector plays a pivotal role in economic growth. He stresses the sector's impact on GDP, employment, and overall value-added, underscoring that productivity gains within this sector are vital. Furthermore, Mulino emphasises the various instrumental functions that financial institutions perform, from banks facilitating credit and household asset growth to insurance companies and superannuation funds managing risk and capital allocation.
The Economic Reform Roundtable aims to foster consensus on enhancing productivity, economic resilience, and budget sustainability by convening leaders from government, business, and unions. This initiative, formerly known as a “productivity summit”, has been reframed to shift focus away from job-cut narratives amidst union concerns over AI-driven labour disruptions. Notably, the roundtable will include key industry figures such as Cath Bowtell of IFM Investors, Andrew Fraser of Australian Retirement Trust, and Sally McManus of the Australian Council of Trade Unions.
The discussions align with calls from industry stakeholders to reconsider regulatory frameworks, such as those proposed by Rest Super, which suggests reforming investment rules of superannuation funds to champion emerging spaces like renewable energy and affordable housing. This could contribute to productivity and efficient capital deployment. Further proposals include ensuring greater predictability in planning outcomes, expanding land availability for housing, and standardising definitions for social housing to level the investment playing field nationally.
Enrico Burgio, Rest’s general manager of public policy and advocacy, highlights the potential of superannuation reforms in tackling major challenges such as climate change, an ageing population, and housing shortages. Supporting economic measures that address intergenerational equity and enhance productivity is crucial, with superannuation playing a substantial role in this transformation.
Rest’s recommendations resonate with perspectives from the Association of Superannuation Funds of Australia (ASFA). Both entities caution against the unintended effects of current performance tests which could limit investments in critical infrastructure and private equity, thus advocating for reforms that enable broader investment opportunities.
As Australia navigates economic reforms, the financial services sector stands as a central figure in shaping the nation's productivity and economic landscape. Strategic adjustments and open dialogues during the Economic Reform Roundtable could chart a path toward sustainable economic growth.
