The Hon Andrew Leigh MP
Assistant Minister for Productivity, Competition, Charities and Treasury
E&OE TRANSCRIPT
TV INTERVIEW
NEWS24, AM AGENDA WITH JULIA BRADLEY
FRIDAY, 6 NOVEMBER 2026
SUBJECTS: Productivity; Tax; Inflation; Albanese Government’s responsible economic management; AI data centres
JULIA BRADLEY: Well joining me live now is Assistant Minister for Productivity, Andrew Leigh. Thank you so much for your time.
ANDREW LEIGH: Pleasure.
JULIA BRADLEY: I want to get you on this story today. I mean, why was the Productivity Commission stopped from looking at the impact of your government's tax changes and workplace laws when reviewing how to fix productivity?
ANDREW LEIGH: We've had a wide number of variety of reports looking at industrial relations and tax over recent years. The Productivity Commission looked at labour arrangements back in 2022. There's been independent reports into the Secure Job, Better Pay and Closing Loopholes reforms…
JULIA BRADLEY: Is that fresh enough? I mean, we're talking about 2026 so why make the restriction in the first place?
ANDREW LEIGH: Well in terms of tax, we've just had a budget which had more tax reform in it than any budget in the past 25 years. We've got reforms not only to capital gains, negative gearing and trusts but also important reforms to the research and development tax incentives…
JULIA BRADLEY: And they are changes that are absolutely impacting businesses. So why not look at this as a metric when looking at how to improve productivity?
ANDREW LEIGH: Well look, the point of this review was to look at some of the issues that have been less commonly canvassed than industrial relations and tax. So we're looking for…
JULIA BRADLEY: You don't think the government's recent tax changes have been canvassed enough?
ANDREW LEIGH: Well the government's recent tax changes haven't taken effect so I don't think it would be possible to…
JULIA BRADLEY: Surely the impact of those changes is going to be pretty big on productivity? Why not look at this?
ANDREW LEIGH: Yes, it will have a good positive effect on productivity. And…
JULIA BRADLEY: Okay, well if it's going to be such a positive impact on productivity, why not let the Productivity Commission actually look at that? Why not include it in the terms of reference?
ANDREW LEIGH: Because we're aiming to do a report which looks at some of the issues that haven't been as carefully canvassed. Issues around business dynamism…
JULIA BRADLEY: I mean, why not all the issues? If your government has nothing to hide and it is really positive about the impact that tax changes will have on productivity, why not include this in the inquiry?
ANDREW LEIGH: This is a focused…
JULIA BRADLEY: I mean look, the point here is, you know, is it even worthwhile, this inquiry, if this is not something that's being looked at? I mean, they're not getting the full picture?
ANDREW LEIGH: Well this inquiry will look at some of those important issues around business dynamism which haven't been explored. We have had a plethora of reports which have looked at tax changes. Our tax changes were informed by a range of independent experts; Grattan, e61…
JULIA BRADLEY: Do you believe the tax changes are going to have a big impact on productivity?
ANDREW LEIGH: Absolutely. Research…
JULIA BRADLEY: So why not then include it in the terms of reference?
ANDREW LEIGH: The research and development government tax changes, which were informed by the Ambitious Australia report which came down at the beginning of this year – they're estimated to make every dollar of R&D tax credit 20 per cent more impactful. Again, those changes haven't gone into effect yet, but we know that they're going to be good for productivity…
JULIA BRADLEY: But they’re going to be big changes. I mean, my question to you is, is it an unproductive use of time and resources to not have the Productivity Commission look at this when it's looking at, you know, how to improve business dynamism as was the purpose of this inquiry?
ANDREW LEIGH: Well it's all about focus, and here we've asked the Productivity Commission not to look at the merger reforms which just took effect because we haven't had the time to see how that's panned out. Obviously, we wouldn't ask them to look at tax changes that haven't yet taken effect. What we have asked them to do is to look at issues which have been raised repeatedly. How can we ensure that business owners get a second chance? How can we improve management quality in an age of rolling out artificial intelligence? How...
JULIA BRADLEY: What do you make of comment by the Australian Chamber of Commerce and Industry saying it's like seeing a doctor and blocking them from checking your lungs and your heart?
ANDREW LEIGH: Look, I don't engage in hyperbolic rhetoric. I'm really focused on how we get the best outcome for Australians and how we ask the Productivity Commission to focus their energies on a new set of challenges that are going to be important to boost productivity. We know artificial intelligence has the potential to raise productivity but diffusing it across businesses is a big challenge. So that'll be one the Productivity…
JULIA BRADLEY: And also the potential to add to inflation as well. I mean, can I just ask, are you restricting independent scrutiny of the government's tax changes because you don't like what it might show?
ANDREW LEIGH: I don't think anyone imagines that you would ask the Productivity Commission to look into tax changes that are yet to take effect. The Productivity Commission has already done important work…
JULIA BRADLEY: But it’s possible though? That is something that they could look at, no?
ANDREW LEIGH: The Productivity Commission has already done important work for the government around venture capital tax changes, around corporate tax changes, and they have informed the changes the government has put into effect such as loss carryback and the permanent $20,000 instant asset write-off. Those business tax changes are part of the biggest productivity package that any budget has brought down in recent years, estimated to boost productivity by $13 billion. This report is about…
JULIA BRADLEY: And clearly your government is saying that, you know, it is really serious about dealing with this productivity issue. And if that is the case, I mean, why rule out looking at some of the biggest policy changes which, as you say, haven't come into effect but will have a big impact on businesses?
ANDREW LEIGH: Any inquiry you would ask the Productivity Commission to do has terms of reference. We've chosen these terms of reference in order to get the most value out of the conversation we think we need. I don't think there is any shortage of industrial relations reports and I don't think there's any shortage of tax reports. But some of the issues that we've asked the Productivity Commission to look into have been less canvassed over recent years. The government's employment white paper, the important tax reports that have been handed down in recent years – all of them have informed the government's work in other areas. The work that led into the merger reform. Again, we've asked the Productivity Commission not to look across the board, not to engage in a sort of blue sky exercise but instead to take a focused look at business dynamism around this particular set of challenges.
JULIA BRADLEY: It sounds like you understand that the Productivity Commission, by giving this quite narrow terms of reference, is not getting the full picture, as you've just kind of pointed to. I mean, look I've got another important consideration to ask you about. We've got the mid-year budget update coming up. I mean, will your government pursue cuts to lower inflation?
ANDREW LEIGH: There will be savings in this budget, as there have been savings in previous budgets. $180 billion worth of savings, including some $38 billion in the most recent budget around savings to the National Disability Insurance Scheme. We have private demand growing faster than public demand right now. The inflation challenge of course, fuelled principally by war in Iran and the impact that is having on global inflation. Inflation is going up in advanced countries around the world and Australia is subject to that. So this budget will do our part, recognising that public demand is about $1 in $5 of total demand in the economy.
JULIA BRADLEY: Just really quickly if I may. We've seen a big pushback in the US to the rapid expansion of AI and data centres. Is your government going to take this on even more as a big issue?
ANDREW LEIGH: We've set principles for data centres. They need to bring their own energy, be careful about water use and provide positive benefits to the community. Here in the ACT where I'm speaking to you from, there's data centres rolling out on 100 per cent renewables which are serving national security and government clients principally. They've enjoyed solid community support and I think that's goal for any data centres rolling out in other parts of Australia. Naturally, state and local governments will also have their say here. The Albanese Government's basic principle is that Australians should get their fair share of the benefits from the data centre roll-out.
JULIA BRADLEY: Shaping up as a key issue. Andrew Leigh, Assistant Productivity Minister, thank you so much.
ANDREW LEIGH: Lovely to chat. Thank you.
ENDS