Jim Chalmers has reassured big business leaders he wants to slash red tape in a second term Labor government

Jim Chalmers has reassured big business leaders he wants to slash red tape, boost productivity and seize the opportunities presented by artificial intelligence — rather than have Australia run scared from it — in a second term Labor government.

In remarks the Treasurer gave to 30 chief executives in Canberra at a closed-doors Business Council dinner on Wednesday night, he emphasised the importance of the private sector in steering the nation out of the current economic slump.

He revealed he has asked the Productivity Commission to specifically examine streamlining regulations during its “five pillars” inquiries looking at the productivity challenges that will either propel or hinder Australia into the future.

The aim is to come up with a list of red tape that can be cut or eased.

“This is all aimed at making it easier to invest, easier to hire, easier to trade and easier to do business in Australia,” Dr Chalmers said.

He linked the focus on productivity — which he flagged as a key part of his plan for a second term — to the massive changes being wrought globally by AI.

“Historically, more than half of our productivity growth has come from working smarter — combining our skills and capital resources in more efficient and innovative ways,” he said.

It was clear AI would become a bigger part of Australia’s economy and life and how the country — and governments — responded would shape its future.

The Government has already released a voluntary AI safety standard and Industry Minister Ed Husic is now developing a national capability strategy looking to support local industry.

“Our focus with AI is also on the huge gains on offer, not just the guardrails,” Dr Chalmers said.

“We want to continue to build and foster innovation, so more workers and more businesses adapt and adopt AI to their advantage, and also give investors clarity and certainty to invest in AI infrastructure in Australia with confidence.”

He noted these focuses were in line with the BCA’s election manifesto published earlier in the week.

While the business lobby group and Labor government have not always seen eye-to-eye over the past couple of years, Dr Chalmers still urged leaders to bring forward their ideas and innovations.

He thanked them for having already done so.

The Opposition has scolded the Government for high levels of public spending, saying it has kept inflation elevated despite it also keeping the country out of recession.

Dr Chalmers said in the next economic phase — coming out of the soft landing managed after the pandemic — the private sector contribution would be vital.

“We decided we’d rather deliver a soft landing than clean up after a hard one,” he said.

“But we know that the best kind of strong and sustainable economic growth means growth led by the private sector.”