AFIA submission to Productivity Commission Five Pillars Interim Reports
On 15 September, AFIA responded to the Productivity Commission’s five pillars of productivity inquiries interim reports on creating a more dynamic and resilient economy, harnessing data and digital technology, investing in cheaper, cleaner energy and the net zero transformation.
AFIA noted that the finance industry is a first adopter in terms of adopting efficiency enhancing technology. Consequently, we believe data and the digital economy must be central to any policy responses. AFIA supports the PC’s assessment that data and digital technologies are critical to Australia’s future economic growth. We also agree that AI is in the early stages of development and adoption, and that government regulation must be carefully calibrated to avoid stifling innovation. Furthermore, AFIA noted that regulation is where Australia’s productivity manifests—because regulation determines where scarce capital, labour and technological resources are allocated.
AFIA recommended the Government undertake a more ambitious program of ‘better regulation’ reforms, streamlining and simplifying regulatory obligations and leveraging mechanisms, such as the regulatory Initiatives Grid (RIG), to ensure regulatory activities are better sequenced and coordinated. On tax reform, AFIA has said that corporate tax changes should be part of a holistic review of taxation in Australia, with a long-term vision which considers all components of the revenue base and a program of comprehensive reform with productivity growth, the scope and reach of government and intergenerational fairness front of mind.
On the energy transition, AFIA recommended maintaining the FBT exemption for EVs and reintroducing the FBT exemption for plug-in hybrids, giving flexibility for novated leasing and fleets. Furthermore, AFIA recommended fast-tracking the deployment of charging infrastructure, via public and public-private partnership investment and the integration of vehicle, charging and household/business energy management.
View the PDF here.