The boss of $58 billion retail and industrials conglomerate Wesfarmers says cost pressures on Australian businesses are rising, and all governments must do more to reduce them while also helping companies prepare for tougher times ahead.

Rob Scott, who leads chains such as hardware giant Bunnings, Kmart, Target, Officeworks and a large lithium project in Western Australia, said weaker economic growth forecasts meant Canberra would not be able to continually rely on such a strong business tax take, as seen in this year’s budget. Amid deteriorating conditions, he added, governments must do more to ensure businesses had flexibility to adjust to the downturn.