The first term of the Albanese government was defined by its fight against inflation, but the second looks like it will be defined by a need to kick start Australia’s sluggish productivity growth.

Productivity is essentially the art of earning more while working less and is critical for driving our standard of living higher.

The Productivity Commission, tasked with figuring out how to get Australia’s sluggish productivity back on track, is pushing hard for corporate tax cuts as a key part of their plan for building a “dynamic and resilient economy”.

The idea? Lower taxes will attract more foreign investment, get businesses spending again and eventually boost workers’ productivity.

Commission chair, Danielle Wood, said last week while the commission wanted to create more investment opportunities, it was aware this would hit the budget bottom line:

So we’re looking at ways to spur investment while finding other ways we might be able to pick up revenue in the system.

The general company tax rate is currently 30% for large firms, and there’s a reduced rate of 25% for smaller companies with an overall turnover of less than A$50 million.

The Productivity Commission’s theory makes sense: if you make capital........

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