Australia’s directors have serious concerns about short-termism in policymaking in Canberra, according to a poll done just after the federal election.
The latest Director Sentiment Index, compiled from a survey of 833 directors, shows sentiment has risen to its highest point since the second half of 2013.
However, they told the Australian Institute of Company Directors (AICD) that they are concerned the new Parliament may not be able to deliver reforms.
“While directors see a move away from short-termism as the key way to lift national productivity (44%), they doubt the ability of government to deliver on long-term reform,” the AICD says.
“Poor public policy debate, potential Senate road-blocks and reduced confidence in the government’s understanding of business are common concerns.”
The directors are calling on the federal government to increase infrastructure investment to drive long-term economic growth.
Addressing the budget deficit is rated as the second most important issue for the federal government to address in the long-term.
Reform of the taxation system is a key priority. Multinational tax arrangements (50%) are the top priority for reform followed by personal income tax (45%), company tax (45%) and state based taxes (45%).
Overall director sentiment is up 4.3 points, as this chart shows: