‘Complacency is a killer’: Malcolm Turnbull’s worrying signs for Australia
Economic indicators have exposed what a former prime minister described as a ‘risk’ to Australia, with a big call on what should be done.
Australia faces a stark economic reckoning that could see the nation ”falling behind” global competitors, former Prime Minister Malcolm Turnbull has warned in a chilling assessment of the country’s future.
Mr Turnbull said Australia needs to “keep innovating” if we are to face the challenging economic headwinds of falling commodity prices and slow productivity growth.
“Complacency is a killer in politics and government as in business,” Mr Turnbull told Bloomberg Television.
“You’ve got to keep asking every day ‘are our policies working?’
“At the level of the economy, the big priority has always got to be productivity and that is driven by innovation.”
Productivity is considered by economists to be a key driver of improvements in living standards, and Australia has faced sluggish productivity growth in recent years at an average of 0.7 per cent since 2019.
Falling commodity prices have also put pressure on the national economy, as resources account for more than 57 per cent of Australia’s exports.
Earnings from Australia’s major resource and energy exports have been steadily falling since 2023, driven by lower prices for iron ore, liquefied natural gas and coal. Of Australia’s major resource exports, only gold has risen in price in recent years.
Mining comprises 12.2 per cent of our total economic output according to Reserve Bank data, with health and education the only industries that come out ahead by this measure.
The former PM said education may offer a lifeline to diversifying our economic output, courting investment and lifting productivity.
Mr Turnbull said investment in research institutions, policies to attract international talent and reducing “regulation and red tape” are key steps that should be taken to improve Australia’s economic performance.
“Australia does not spend enough on research and development,” he said.
“Australian business doesn’t, and we’re not spending enough in the primary research realm of universities and research institutes either, so that needs more encouragement.”
Australian universities rely heavily on the fees paid by international students, with the second-highest share of international students globally and comparatively low government funding.
Mr Turnbull said Australia has “some of the most liveable cities in the world,” creating “a huge opportunity in terms of talent”.
“There is a war for human talent and we have some very attractive things going on,” he said.
“Which is why we need to be putting more money into research, because those scientists and technologists will want to come here and work with us.”
Australia’s cap on international students at local universities became a central talking point during the federal election, with former opposition leader Peter Dutton pledging to cut a quarter of existing places.
Education Minister Jason Clare announced in August a nine per cent increase in the government’s target number for new international students for 2026.
Originally published as ‘Complacency is a killer’: Malcolm Turnbull’s worrying signs for Australia
