NAB boss attacks payroll tax and government spending as economy slows
NAB's Andrew Irvine told a parliamentary hearing that state payroll taxes and high government spending are damaging Australia's economy.
NAB boss Andrew Irvine told a parliamentary inquiry that state payroll taxes were among the most damaging policies. He said they harm business investment.
Government spending has grown to around 29 per cent of the economy. It was 23 per cent in the early 2000s, he said.
This crowds out private sector growth. Matt Comyn warned that interest rates will stay higher than the low 2010s.
He cited geopolitical shocks, AI construction spending and demographic pressures. Retailer Accent Group reported sales fell 5 per cent since August.
This signals a consumer slowdown. Both banking leaders called for lower government spending to reduce inflation.
- 23 per cent of economy
- Early 2000s government spending
- Around 29 per cent of economy
- Current government spending
- Less than 30 million
- Australia's population
- 5 per cent since August
- Accent Group sales decline
Why it mattersBanking leaders' public criticism of government spending could influence fiscal policy. This could potentially lower inflation and interest rate pressures.
AustraliaAustralians could face lower interest rates if government cuts spending; businesses may see changes to payroll tax if banks' push succeeds.
✓ Claims checked against the source. checked 1 d ago
