New research commissioned by the Australian Institute of Company Directors (AICD) warns that Australia’s productivity challenge demands reform. Conducted for the AICD by Mandala Partners, The Stagnant Nation: Lifting Australia’s Dynamism finds productivity growth is 85% slower than the OECD average and regulatory burden 33% higher.
Business research and development expenditure fell from 1.3% of GDP in 2010 to 0.9% in 2022, while non-mining investment declined from 12% in 2005 to 8% in 2025. Job mobility also dropped from 12% in 2000 to 8% in 2025.
The AICD-commissioned research estimates federal regulation contributed 20% of Australia’s declining dynamism over two decades. Reducing the burden to late-2000s levels could lift GDP by at least $20 billion annually over the next decade. Drawing on these findings, the AICD recommends regulatory reform, implementing the Productivity Commission’s 47 recommendations, expanding competition initiatives and strengthening approval timeframes to support investment, innovation, productivity and economic growth.