Question Time AU

General Debate

Economy

Senate · Thursday 28 August 2025

Official Hansard for this day (APH) · Read this debate on OpenAustralia

At a glance

Senator Tammy Tyrrell moved a motion arguing that productivity growth is at a 60-year low and that current government and opposition measures are inadequate. She proposed structural reforms to the labour market, including simplifying leave entitlements and removing labour market testing for visa holders, as well as introducing financial penalties for bureaucratic delays in project approvals. Senator Richard Dowling responded by defending the government's broad productivity agenda, citing roundtable consultations and specific reforms such as nuisance tariff removals and regulatory simplification, while rejecting the notion that the government's response was insufficient. Senator Malcolm Roberts attributed low productivity to net zero policies, high immigration, and excessive regulation, arguing that these factors increase costs and reduce economic output. The motion was negated.

Outcome

The motion was negated.

Summary in reported speech - not a transcript. AI-generated, so check the official record before quoting.

How the debate unfolded

Opened the debate

Tyrrell argued that productivity debates are often muddled by political competition between unions and business interests, resulting in a stalemate. Tyrrell proposed replacing the current complex leave system with a single universal allowance of 25 days annually and abolishing long service leave in favour of quarterly performance bonuses. Tyrrell also called for the removal of labour market testing for visa holders, suggesting instead a government-maintained skills shortage list based on real-time data. Furthermore, she advocated for a statutory project approval guarantee that would impose financial costs on the government for delaying decisions on large projects.

Government response

Dowling acknowledged the severity of the productivity challenge but contested the claim that the government's response was insufficient. Dowling highlighted the government's engagement with unions, businesses, and researchers through economic roundtables to develop a whole-of-economy approach. Dowling listed specific measures including the abolition of nuisance tariffs, red tape reduction in the National Construction Code, and the introduction of a 'tell-us-once' service delivery model. Dowling emphasised that productivity gains come from thousands of incremental improvements rather than single large-scale changes, and noted the potential economic benefit of even small productivity increases in Tasmania.