Canberra must ‘stay the course’ on surplus: BCA

Tim Reed says government should be taking measures to boost productivity through the economy.

The incoming president of the Business Council of Australia said the Morrison government should “stay the course” on the budget surplus, although it should be taking measures to boost productivity through the economy.

Speaking on Sky News’s Business Weekend, the BCA’s Tim Reed said the government should keep its focus on the medium term reforms despite the pressure of a slowing economy.

“We think given the current economic conditions that the government should stay the course and should deliver the surplus it has been hard fought for and it will be a hard-won outcome when it is achieved,” he said.

“What we think the government should be doing is focusing on policy areas that will drive productivity … (which is) the most sustainable way to make sure that we have medium-term economic growth.”

The former MYOB chief executive was last week named as the replacement for BCA president Grant King, who will step down at the peak business lobby’s annual meeting on November 20.

Mr Reed said he would still advocate for corporate tax cuts, although he noted the government was not expected to move on tax for big business after being unable to secure Parliament’s support for the plan earlier this year.

“What we saw progressively over time as that debate took place (was) that more and more people understood the importance of Australia being a competitive place to do business,” Mr Reed said.