Andrew Kay’s column in The Advertiser — Tuesday 2nd September
In late July I travelled to the USA with a delegation of state Chamber CEOs, led by the Australian Chamber of Commerce. Our visit centred on trade discussions before the US President made his August 1 tariff announcements.
While our meetings took place in New York and Washington DC, it was Texas that kept popping up in conversation. Texas, we were told is thriving, awash in a sea of capital investment.
Its approach has been clear — low taxes, fast decisions, a talent focus, and investor-friendly policies.
Texas has no corporate or personal income tax, a competitive advantage for attracting both businesses and workers. Support that with a sales tax exemption for manufacturing machinery and R&D‑related materials, software and equipment, property tax abatements, permit fee waivers, local cash grants and you have an environment geared to attract businesses and start-ups.
The Texas Enterprise Fund awards “deal-closing” grants to companies considering a new project where Texas is competing with other out-of-state sites. The incentive is performance-based for projects contributing significant capital investment and new employment opportunities.
They drive home this advantage through an aggressive international investment attraction strategy, customising incentives to target high-growth sectors. While many states talk a business-friendly game, Texas is living it, and it shows.
The fact they have a young, growing population and a top-tier university system, does them no harm with a large talent pool of skilled workers readily accessible to the businesses they wish to attract.
What could we learn from the Lone Star State?
Like Texas, our economy has started to diversify. We share common pursuits in renewable energy, tech, aerospace, healthcare, and advanced manufacturing. Our new university will improve competitiveness in attracting both research and student talent.
The opportunities lie in reducing the tax burden, red tape and incentivising business and skilled talent to choose South Australia.
Payroll tax is an obvious target, while land tax and stamp duty relief could be linked to businesses investing in key sectors.
Streamlining business approvals through a “one-window” digital portal is an idea whose time has surely come. Review unnecessary compliance in the planning process, and the fast tracking of projects happens organically.
These measures will help create the environment, while incentives to attract talent, businesses and start-ups act as the catalyst for action.
As our leaders put the finishing touches on their 2026 election promises, they could do worse than look to Texas for inspiration and rekindle an old friendship.
Adelaide has had a sister city relationship with Austin, Texas for more than forty years. It suffers from under-investment and lack of engagement. This was highlighted when Western Australia opened its Invest and Trade Americas Hub in our sister city in March 2024. That feels like a missed opportunity.
The Austin relationship should be our entrée into Texas and one we embrace on a more commercial footing at government rather than council level. Until then, as the Texans would say, when it comes to sister cities, we are all hat and no cattle.
