Prime Minister Anthony Albanese has declared Australia is entering a “time of profound opportunity”, laying out an ambitious agenda for national productivity, economic reform and global engagement at a business forum in Sydney.
Speaking at Crown Hotel, the Prime Minister urged Australians to “back ourselves” and “work together to seize this moment of opportunity” amid significant global uncertainty.
Albanese’s address, which served as a major economic outlook statement, was accompanied by a wide-ranging interview with Sky News political editor Andrew Clennell, where he touched on tariffs, AUKUS, tax reform, Kevin Rudd’s role in Washington, and the upcoming Productivity Roundtable in Canberra.
“We begin this decade not with a test of whether we can manage uncertainty,” the Prime Minister said, “but whether we can work together to seize this moment of opportunity… to build a more secure and prosperous future, the Australian way – with no one held back and no one left behind.”
Outlining Australia’s unique advantages – from critical minerals and renewable energy potential to a strong education sector and multicultural society – Albanese asserted:
“We want to make more things here, in a more competitive and diversified economy… boosting our resilience and our self-reliance, so we are not always the last link in the global supply chain.”
When pressed about Australia’s trade relationship with the US in light of Donald Trump’s possible return to the White House, the Prime Minister struck a diplomatic tone, saying,
“We continue to be engaged with our American friends… but they have a different position on tariffs. I have said that’s an act of economic self-harm. I stick to that.”
Asked whether Australia expects any determination on steel tariffs from the US on 9 July, Albanese said: “We’re on 10 per cent. I assume that will be the case.” He acknowledged that previous negotiations with Trump had been constructive, but:
“President Trump made a decision that’s consistent with his public comments. He has also said that there’s no more beautiful word in the English language than ‘tariff’. That wouldn’t be in my top million of words.”
On AUKUS, the Prime Minister was adamant that the trilateral pact is beneficial to both nations. “AUKUS is a good deal for Australia and it’s a good deal for the United States… When it comes to defence and national security, we’re not people who don’t pay our way,” he said.
Albanese dismissed suggestions that former prime minister and current Ambassador to the US Kevin Rudd was a liability in Canberra’s relationship with the Trump camp. “The discussions I’ve had have been very positive. No one could doubt his hard work or his ability to work strongly,” he said.
Turning to domestic policy, the Prime Minister defended the government’s proposed Productivity Roundtable, describing it as an opportunity “early in the term to bring people together from business, civil society… to have a discussion about things that aren’t about the 24-hour media cycle… It’s how Australia positions itself for future growth.”
On the question of tax reform, Albanese held firm. “We’re trying to avoid just that question,” he told Clennell. “Is [raising the GST and lowering income tax] on my agenda? No, it’s not.” He emphasised support for progressive taxation:
“Consumption taxes by definition are regressive. That’s something that doesn’t fit with our agenda.”
Still, he welcomed contributions to the upcoming roundtable, stating:
“People are entitled to put things up and this will not succeed if we have the next month being asked day after day… ‘Labor open to considering XXX.’”
Asked whether he’d support lower income tax overall, Albanese replied, “I always want to see income taxes as low as possible and wages as high as possible, consistent with… economic stability.” He also pointed out that the Labor Government was the first in years to lift the top marginal rate threshold, a move he said reflected changed circumstances due to inflation and cost-of-living pressures.
The Prime Minister also reaffirmed his support for superannuation tax changes targeting high-balance accounts:
“We put [the proposal] forward in the last term. It would affect just a very small number – half a percent.”
On NDIS spending, Albanese acknowledged growing concerns. “No, I’m not [happy with it],” he said in response to figures showing a large portion of young children now on the scheme.
“We need to make sure that it is made more sustainable. But people who need the NDIS need to keep it.”
In defending the government’s broader role in the economy, Albanese challenged criticisms of his industrial relations reforms and green energy targets, saying,
“Paying people fairly actually assists business… A Labor Government will always support jobs and we will support people having a stake in society.”
Wrapping up, the Prime Minister described his governing philosophy as deeply collaborative, in the tradition of Hawke and Keating:
“Australia works better when we engage people across business, unions, and civil society. That’s how you get change.”
As he concluded, he echoed a guiding Confucius principle: “If you think you’re the smartest one in the room, you’re in the wrong room.”
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