Treasury boss Steven Kennedy says the best way to insulate the Australian economy from a slowdown due to the US-China trade war is for business to get better at adopting artificial intelligence and government’s to enact productivity-boosting reforms to competition, road user charges, project approvals and expand carbon pricing.

He also made a veiled suggestion about expanding co-payments in low-productivity social assistance, such as the $50 billion National Disability Insurance Scheme, after user pay charges were increased for aged care in the last term of parliament.