2019 CEO Survey: Gary Wingrove, KPMG Australia

Lower corporate taxes and a strategy to reduce carbon emissions can help Australia succeed, says Gary Wingrove.

KPMG chief Gary Wingrove. Picture: John Appleyard

Every year The Australian’s John Durie asks some of the biggest names in Australian business five key questions about what’s coming in the year ahead.

Here, in his own words, is what KPMG Australia chief executive Gary Wingrove sees ahead in 2020.

You can read more from the CEO Survey.

How is your company affected by low-interest rates and what is needed to boost the economy?

It is our experience, especially working with our clients, that low interest rates do help stimulate economic activity and bring forward marginal investment. But, even with the current low interest rates, the domestic and international economic landscapes look challenging.

Investors are taking a more cautious approach to new ventures. They are either looking for opportunities that will improve their business in the near term or are prepared to defer investment until conditions improve, and they have greater clarity. We also need a comprehensive set of reforms in a wide number of sectors that are focused on lifting productivity and living standards. This includes taxation reform and the whole gamut of human services, particularly health and education. We can’t afford reform stagnation.

What is the impact of government regulations on your company, including those applying to the financial sector?

Increasing regulation, often driven by changing community expectations, is adding a layer of complexity and cost to managing our business through increased compliance and monitoring activities. It is a key challenge for our clients, too, ranking as a top-three priority issue for them in our latest CEO survey.

What percentage of company revenues are spent on research and development, and how is your company using technology to improve performance?

We see technology as an enabler to reconfigure professional services and improve how we deliver services to our clients. Technology is absolutely critical to everything we do, so we’re investing in our Innovation, Solutions & Ventures division to expand and accelerate our plans. Our aim is to help our clients predict rather than react to the future, so they can achieve their business outcomes faster and with higher predictability by using innovative platforms such as our Origins Blockchain.

What are the three major policy issues facing the country and what should be done about them?

● A comprehensive strategy to reduce carbon emissions to meet the government’s 2030 target of 26-28 per cent below 2005 emissions remains vital. It will enhance our international reputation, provide a clear framework for the energy and renewables sector and promote Australian carbon-reduction businesses that may succeed in the Asian market.

● Australia also needs to reduce its company tax rate to 25 per cent to attract foreign investment for longer-term growth. In the interim, we should consider an investment allowance which would be comprehensive and cover both tangible and intangible property.

● And Australia needs to address disincentives to greater participation of secondary earners who are primary carers from increasing hours of work. This would lift productivity, create a fairer model for parental responsibility and go towards addressing the long-term imbalance between wealth and income of men and women.

What are the major impediments to long-term growth facing your company and what can or is being done about them?

Nobody wins from tariff wars or ongoing trade disputes. The current geopolitical backdrop is one of the major challenges Australian companies have to face. A stable global environment which encourages international trade, economic investment and co-operation rather than protectionism would benefit all countries.