Living in the great state of South Australia, there are some things that are so easy to find we almost stumble over them. A serious flat white, a delicious banh mi, an uncounted box of postal votes… But productivity gains? Scarcer than a bad red wine in McLaren Vale.
As a country, we averaged a paltry 0.2% increase in productivity from 2015 to 2025, so we are not alone. But as our state economy grows, it is not translating into broad gains in productivity.
The longer the war plays out in the Middle East, the more local businesses are being squeezed, so while it might seem an odd time to raise the subject of productivity, there is an opportunity here. This conflict has the potential to harm our economy, but it can also be the catalyst for business and government to work together to unlock efficiencies and productivity.
During times of international economic instability, we need to be realistic about what short-term state-based policy can achieve to lessen the burden. Governments can and should provide targeted support where it’s needed, but we can’t spend our way out of global cost pressures.
Many South Australian businesses are dealing with rising costs on multiple fronts across transport, energy, wages, and inputs. At the same time, they are also navigating regulation, approvals and compliance requirements that do not reflect their operating environment.
In a low-cost environment, that kind of friction is frustrating. In a high-cost environment, it becomes a real constraint on growth.
Faced with our current challenges, productivity is the most immediate and practical lever we have. If we can streamline approvals, reduce unnecessary red tape, and make it easier for businesses to invest and expand, we can help offset some of the cost pressures that are outside of our control.
This is a moment for practical leadership to focus on actions that can be implemented now. That leadership needs to be shared across government and industry.
Sometimes regulations are brought in to deal with a safety or environmental issue, then they stick — well beyond their use-by date — when technology or other reforms have rendered them obsolete.
We need the industry to identify the rules and regulations in their sector that add unnecessary costs to doing business, yet appear not to serve any purpose. Want an even quicker response from the government? Find compliance that leads to unnecessary fuel usage and wastage.
This is not about lowering standards. It’s about removing unnecessary barriers that slow things down without adding value.
I encourage you to share your ideas with the South Australian Business Chamber at policy@sabusinesschamber.com.au.
Until we lift productivity, we’re asking businesses to carry higher wages, higher costs and lower growth all at once. That’s not sustainable, so let’s not waste this crisis.
Our State Government has been clear that the fuel situation needs a nationally coordinated response, and when it comes to supply and demand, that’s true. But this is one area we can go it alone without hesitation. While we can’t control the global environment, we can influence how difficult or easy it is to do business in South Australia.
For a government looking to manage a global crisis with local solutions, productivity is the best place to start.
