Australia’s Global Challenge: Reducing Red Tape and Power Costs to Remain Competitive

From the podium in Western Australia, Geraldine Slattery delivered a message that cut straight to the heart of Australia’s economic crossroads. The global race for capital is intensifying and Australia, she argued, cannot afford to rest on past advantages. In her view, two issues stand out as urgent: the heavy burden of regulatory approvals and the steep cost of power. Both, she warned, are making Australia less competitive for investment. Investing.com Australia+2Mining Weekly+2

The Core Insights

Slattery’s comments rest on clear evidence and sharpened warnings. She pointed to Australia’s labour productivity growth which is now at a sixty-year low, characterising it not simply as a statistical outlier but a structural challenge with implications far beyond one sector. Engineering News+1

Her specific concerns included:

• Permitting and approvals: Slattery described the timeframe for environmental and resource project approvals as a “linchpin” problem — not incidental but central to productivity and competitiveness. MarketScreener+1

• Energy costs: She — and her colleagues at BHP — emphasised that Australia’s power costs remain significantly higher than those of competitor jurisdictions. In effect, policy and infrastructure settings are imposing a drag. Engineering News+1

• Tax and regulatory settings: Slattery made plain that Australia’s tax, labour and regulatory frameworks need to better align with global benchmarks if the country is to attract investment in resources and other capital-intensive industries. Mining Weekly+1

In sum, she asserts that Australia is not guaranteed its future status as a preferred investment destination; instead it must earn that position through reform and competitiveness.

Why It Matters

The significance of Slattery’s remarks goes beyond mining. Australia’s economic model has long benefited from its resource endowment. But as global dynamics shift – as technology develops, as supply chains evolve, as energy transition accelerates – the question is whether Australia will adapt or fall behind.

Key reasons this matters:

• Global investment flows: Companies like BHP compare jurisdictions before committing hundreds of millions or billions of dollars. Regulatory delays, high input costs, uncertain approvals all reduce the chance of choosing Australia.

• National productivity and standard of living: Low productivity growth means fewer gains in wages, fewer opportunities for growth, and a harder environment for new industries. Productivity is not just an economic abstraction—it’s about national capability.

• Energy transition and infrastructure: As Australia moves toward lower-carbon technologies and builds out infrastructure, cost and speed matter. Expensive energy and slow approvals hamper not just resource projects but many of the future growth sectors.

These issues paint a picture of Australia at a turning point: either move decisively or risk being overtaken by faster, leaner competitors.

What Should Be Done

To respond to Slattery’s warning, the steps are clear and interconnected:

1. Streamline approvals and reduce duplicative regulation
   Reform should focus on faster, risk-based pathways for major projects; clearer coordination between Commonwealth and state levels; and avoiding unnecessary duplication. Slattery described this as essential for productivity. Australia Times+1

2. Lower energy and input costs
   Achieving more competitive power costs will require investment in infrastructure, regulatory certainty about energy transition, efficient market design, and cost-effective technology deployment. High power costs undermine the competitive edge of Australian industry.

3. Align tax and regulatory settings with global peers
   Australia must benchmark itself against competitor jurisdictions and consider whether its mix of corporate tax, royalty regimes, labour regulations and incentives are fit for attracting capital. Slattery highlighted tax rates and settings as part of the package. Engineering News

4. Invest in productivity-enhancing technologies and skills
   Automation, artificial intelligence, better training of the workforce—all were cited by Slattery as essential to lifting productivity. Australia cannot rely solely on natural endowment; it must build capabilities. Miners Digest

5. Ensure policy stability and predictability
   Investment decisions are long term. Signals of regulatory risk, policy uncertainty or shifting frameworks discourage capital. The broader implication is that Australia’s policy settings need to be stable and globally trusted.

Takeaway

Geraldine Slattery’s message is blunt but necessary: Australia cannot assume its competitive advantage will persist by default. If the nation wants to keep attracting major investment and power growth across sectors, then reform is not optional—it is imperative.

At TMFS we believe that leadership, in business and government, must recognise both the opportunity and the urgency. When a major national company like BHP signals concern about its home jurisdiction’s competitiveness, it is our collective duty to listen. Reforms that accelerate productivity, reduce cost burdens, and streamline barriers benefit not just industry—they benefit workers, communities, and the nation’s future.

Australia has the assets, the talent and the potential to lead globally. But that leadership will only persist if matched by action. If you are a business leader, policy-maker or stakeholder: ask yourself today—what barriers are we tolerating that could cost us our competitive future?

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