‘Return to growth or pay slides’

average pay packet potentially would be more than $50,000 lighter than what is could be if Australia’s economic growth rate does not return to its historic norm, the nation’s peak business lobby group warns.

The forecast was issued as the Business Council of Australia launched a campaign ahead of the federal election with a detailed “to-do” list aimed at creating what it calls a “more resilient” Australia.

Releasing the plan just as Prime Minister Scott Morrison called a May 18 election, the business lobby group said it aimed to deliver better and more jobs, higher wages, lower taxes and energy prices, and improved standards of living.

BCA chief executive Jennifer Westacott said the plan provided “practical action” on a range of concerns raised with the lobby group during community forums it hosted nationally over the past year.

“Australians are worried about the future … they want leadership and a vision that will allow them to get ahead,” Ms Westacott said.

“They’ve told us they want action to increase their wages, lower their electricity bills and living costs, skills and training, reduced congestion in their cities, and increased opportunities in the regions.”

Economic growth in Australia has slowed to 2.3 per cent annually, having averaged 3.5 per cent for the past 55 years.

BCA modelling shows if economic growth averages 3.5 per cent over the next 36 years to 2055, the average real income for an Australian would grow from about $75,000 a year to about $160,000 a year.

Tax revenues would be $290 billion higher.

But the modelling shows if economic growth runs at 2.5 per cent a year, then by 2055 the average income would stand at $108,000.

That is $52,000 a year less than what would be achieved if the nation could return to and maintain its historic average economic growth rate.

Tax revenues would also be more than $100 billion lower than what they could be.

“Growing the economy faster matters because the value of what Australians produce and earn impacts directly on living standards,” Ms Westacott said.

Among its suggestions, the BCA wants the government to introduce an infrastructure planning trigger as part of a population plan, ensuring population projections better inform public infrastructure so the nation does not play catchup. An audit of the strengths of regional areas so infrastructure dollars go to centres with the best potential for growth should be carried out.

The BCA wants more funding for TAFE, and changes to make it easier for workers to study individual units rather than leave their job to undertake an entire course.

The enterprise bargaining system would be strengthened while the “straitjacket” of industry-wide bargaining needs to be rejected.

Personal income taxes should be kept low and company tax cut to 25 per cent to encourage investment.

Getting power bills down by delivering a bipartisan longterm national energy policy and action on climate change are also on the to-do list.

The BCA wants an increase to the single rate of Newstart and a Productivity Commission inquiry into entrenched disadvantage to find out why some people are not getting ahead.

AUSTRALIANS ARE WORRIED ABOUT THE FUTURE … THEY WANT LEADERSHIP AND A VISION THAT WILL ALLOW THEM TO GET AHEAD BCA CEO JENNIFER WESTACOTT