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Aust's international cost competitiveness 'still slipping'

04 September, 2013

Australia's rank on the latest Global Competitiveness Report 2013-14 highlights the "further slippage in Australia's international cost competitiveness", Innes Willox, AiGroup's chief executive said in a statement released this week.

The Global Competitiveness Report 2013-14 produced by the World Economic Forum (WEF) has Australian ranked 21st, down one place from last year.

"Out of 148 countries, Australia's labour market efficiency ranking has slipped from 13th in 2011-12 to 54th in 2013-14," Willox said.

"In fact, when asked to select the five most problematic areas for doing business in Australia, 17.3 per cent of respondents saw restrictive labour regulations as the top difficulty.

"Among the other findings, Australia has slipped to: 135th for the flexibility of our wage determination, down from 123rd last year and from 110th in 2010-11; 128th for the burden of government regulation, down from 96th last year and from 60th in 2010-11; 113th for pay and productivity; down from 80th last year and 53rd in 2010-11; and 109th for the total tax rate, down from 106th last year and 94th in 2010-11.

"These results highlight the high cost of doing business in Australia and the pressing need to improve key areas including industrial relations, business regulation and company tax in order to lift our international competitiveness."

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Alf | Friday, September 6, 2013, 10:43 AM
No what is regarded as great news but totally expected for the behaviour of the UNIONS, our current Government meaning Labor, that will change tomorrow I pray, but really depends on the Australian people and if they have any common sense. Three things have to change people gouging cash and also a lot of manufacturers, and importers are a prime example, example look on Toilets $30-00 selling here for $275-00 delivery $1000 a container of 200 to Australia. Unions destroying the hand that feeds them trying to make more money for their services when they have time to do some work,Why do most manufacturers prefer to employ overseas workers ? Simple they work and don't have this Aussie mindset that if you run a company you are rich, and third is this labor Governments past performance over the last 6 years, unfortunately they have created an economy that wont help us even when we change it for many years will be spent in rectifying there Communistic mistakes.
Greg | Friday, September 6, 2013, 2:33 PM
Alf, might be worthwhile to read the article regarding the Workers dismantling the old Mitsubishi Plan in Adelaide where they were paid $1.90/hour. Sounds like the sort of money you would be happy to work for.
Goldie | Tuesday, September 10, 2013, 6:48 AM
The federal government nor any of the states want to talk about the high cost of just about everything in Australia let alone do anything about it. The reason is they know they are a big part of the problem and the last thing they want is an enquiry that confirms it. Best to just keep flapping their gums about how terrible it all is and go back to stealthily raising their own incomes through all manner of taxes with scant regard to the fact that their victims, their constituents, have no or limited ability to do the same. Tell me the last time you heard any of our egomaniac politicians of whatever brand get down to facts and figures regarding high costs? Never have and never will. Non of them can be honest and that's the truth.
Lou Furbadamo | Friday, September 13, 2013, 11:35 AM
Hello caring, passionate, yet objective fellow readers! Nice to have an occasional unsavoury dose of reality, with a fine Liberal scotch at hand! So, remember back ages ago, to last blooming handbags, lefty year, when the treacherous “No Carbon Tax Red Queen”, Juliar and her accoladed, “World’s Greatest treatshurer and eminent Virgin Budgeteer", Suwannee were hyping us with exemplary world best economy tripe and still promising a boom-boom surplus? When in deceptive reality, we were actually heading backwards toward barely ran; 54th, 135th , 128th, 113th, rankings now reported and couldn’t have been doing much worse! So you "gotta" surely enjoy a Furbo Paradigm Australis moment, to laugh at all the gullible, true believer twits! Right? Regardless, how about now onstructively, also embarrassingly, “unmentionably,” for once reporting and investigating something you didn’t know or figure! Like where we rank with our perennially grossly overpaid, wastefully duplicating federal and oligopoly state government systems, costly pollie jerquers and snorters?? Where do our illustrious, underperforming, one of a kind, rare snorting clown jewels rate, relative to pertinent international performance parameters, world best practice and value for sucker rip-off index ?? No doubt down near the heaping, foul Bombay Dumps or back yard dung hole, because they are, the principle, inefficient, wasteful, duplicating divas and drivers of the above and previous reported failures! Mind you, I do annoyingly keep reminding, that If we don’t hold our exorbitant failures accountable and China Century Style, Hang a few; “They’ll never get the message, learn what they’re there for and better change their ways” and we’ll be forever stuck with political circus cr*p! To prove the “credibility” of our 135th ranking for the flexibility of our wage determination and obvious community butch slap and insult; Juliar has shown characteristic, certain surplus flexibility in her own optimum remuneration and affairs, cause she generously seems to have post flick landed on her poor Battler Comrade feet, by flexibly scoring a convenient job as Professor of “Poliwanktics” in Adelaide, the popular graveyard of many a labour successful disaster embarrassment. However, She’s apparently, differently had the sly, furbo wisdom to personally surplus save, whilst contrarily lie leading the rest of the country to a circa 300 billion black hole! To be able to regular, Aussie battler struggling Mums and Dads, humbly purchase a cool two million dollar “La dolce vita” home on the prime Bay Esplanade, just a mere 35 odd kilometres from her primary comrade constituents at quasi Hackham or Elizabeth Beaches??? Don’t you feel sorry for her demise? But she’ll now have the time to privately fly over to the old Dart and be personally consoled by surely, the grandest SA. Sugar Daddy of them all, Randy Dandy? Now that he’s presumably, long parted with Cafeteria, Can’tell Shagger Me'Loins and our suffering, unbalanced, bankrupt pits State is an annoying distant memory? What a masterly ding bat reunion that’ll be comparing “what ifs” and great feats of memorable state and national failures?? So Cheers! While waiting for our New Budgie Boy, to stop them leaking boats and perform seemingly mindless miracles, from a residual wasting economy and non surplus thin air! Use their faulty, fairied, fickle, fingle finger of fate, Tony! New, Old Furbo! PS. I’ve intuitively stopped holding my breath for our next budget surplus! What a relief!
tommo | Thursday, December 5, 2013, 11:28 AM
GDP actual and on purchasing parity power. Taiwan real - usd 21k Taiwan PPP - usd 38k Australia real - usd 50k Australia PPP - usd 41.5k USA REAL AND PPP - 50k Taiwan is low cost for export, but has almost the same PPP at home as us. In Taiwan a person in A shop on 10K has more PPP (18K) than an indentured retail slave in the USA at 14-15K. Here retail is paid 33-40K and that can be covered because most being sold is imported and marked up a lot. We are so dumb and it will be so late by the time we wake up. PRODUCTIVITY HAS GONE OUT THE DOOR HERE IN THE LAST 10 YEARS, people especially younger ones dont work smart or hard enough. I agree on the bosses are "bastards" mentality is rife here. i have been in business 20 years and things I do by myself on import have subsidised the job in my factory at times and the workers don't just get it. I have many years earnt less than the top paid ones and I am at times the self employed poor taking all the risk. We deserve to burn. i am used to living on the smell of an oily rag. Most Australians are not , so it will hit hard. If would take a greek type crisis to reset the lazy public service at all levels