Australia has ranked 21st in the latest Global Competitiveness Report, down one place from last year.
Produced by the World Economic Forum (WEF), the report found Australia stacks up well in terms of its infrastructure and education system.
But the Report highlights a “further slippage” in Australia’s international cost competitiveness,” Ai Group Chief Executive, Innes Willox, said.
“Out of 148 countries, Australia’s labour market efficiency ranking has slipped from 13th in 2011-12 to 54th in 2013-14,” Mr Willox said.
When asked to select the five most problematic areas for doing business in Australia, 17.3 percent of respondents saw restrictive labour regulations as the top difficulty.
The report shows 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,” Mr Willox said.
However, the survey found Australia continues to be a world leader in a number of key areas, including:
- First for secondary education enrolment rates
- First in the legal rights index
- Second for the number of days to start a business
- Third for the number of procedures to start a business and
- Eighth for the quality of our scientific research institutions.
Australian Industry Group is a Partner Institute of the World Economic Forum’s Global Competitiveness Network and is responsible for carrying out the Forum’s Executive Opinion Survey in Australia.
The full Global Competitiveness Report 2012-2013 can be found at: