Treasurer calls on business to pump profits back into economy | Sky News Australia

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Shareholders are surprised by a call from Treasurer Josh Frydenberg for big business to pump their profits back into the economy.

Mr Frydenberg used a major speech to the Business Council of Australia on Monday to call on corporate Australia to do more to kickstart productivity by winding back share buybacks. Mr Frydenberg said raising productivity by 0.4 per cent over the next decade would grow the economy by $70 billion and result in a $3,000 pay rise for workers. Mr Frydenberg said “our productivity growth over the last decade has slowed and we cannot rely on high commodity prices to boost national income.

“Should we get our average annual productivity growth from 1.1 per cent back to 1.5 per cent, then annual incomes per person will be over $3000 higher by the end of the decade. “GDP growth and real wages will also be four per cent higher and the economy $70 billion bigger overall. That is a lot to play for.” Labor has been critical of the treasurer’s strategy, with Shadow Treasurer Jim Chalmers accusing the government of deflecting blame for slow economic growth.

 

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