Business Council of Australia CEO Highlights State-by-State Competitiveness Challenges in New Interview
In an interview with Sky News’ AM Agenda, Bran Black, Chief Executive of the Business Council of Australia, gave a frank assessment of how the various Australian states stack up when it comes to competitiveness, regulatory burdens, and overall operating environments. His comments have re-energized debate among corporate leaders, policymakers, and investors about where companies should expand, invest, and hire in the coming year.
During the interview, Black emphasized that while Australia as a whole remains a stable and attractive environment for business, experiences can vary greatly among the states. He singled out Victoria as one of the least competitive business environments, with its high regulatory pressures combined with significant tax burdens. On the other hand, he said New South Wales and Queensland have recently adopted more constructive approaches toward attracting and retaining business investment.
“Every state has strengths, but the cost of doing business must be a priority,” Black said. “Payroll tax, stamp duty, licensing costs, and planning delays are the things that directly shape job creation, productivity, and investment appetite. In some states, the cost signals being sent to the employers simply are not encouraging.”
According to Black, Victoria’s regulatory and taxation environment is currently out of step with what competitive jurisdictions are offering. High payroll taxes, overly complicated systems for licensing, and time-consuming planning approvals have created anxiety among business owners and large employers. The Victorian government has recently moved to cut red tape in planning, but Black said the broader cost and compliance environment remains an issue.
“Planning reform in Victoria is to be welcomed, and we should give credit where credit is due,” he said. “But this needs to be accompanied by a real commitment to cost relief. Businesses invest based not on policy pronouncements but on the implications for the bottom line and their long-term growth trajectory.
Black also pointed out that Queensland and New South Wales have shown more momentum in creating pro-growth business climates, particularly on investment incentives, streamlined regulation, and balanced tax structures. “These states have actively recognized that business investment drives job creation,” he said. “When the policy environment is stable, transparent, and competitive, it encourages companies to expand, hire and innovate.”
The larger context for Black’s comments is an emerging economic climate characterized by different priorities for investors, higher interest rates, and greater competition for the UK from markets in Asia and the United States. Business leaders, especially in the manufacturing, retail, logistics, and technology industries, are increasingly taking a closer look at the cost impact of where they are placing facilities and headquarters.
One of Black’s central concerns is making sure that Australia does not fall behind its global competitors. “We operate in a world where capital is mobile. Companies can choose where they invest. If we want to attract high-value industries, advanced manufacturing, clean energy development, and global tech operations, we have to send a clear signal that Australia is open for business.”
In addition to tax and regulatory burden, Black identified the need for infrastructure readiness, skilled workforce development, and collaboration among states. He emphasized that state governments must avoid quick revenue fixes that undermine long-term competitiveness.
“Increasing taxes may generate immediate revenue, but if it discourages business expansion or drives investment elsewhere, the long-term economic cost is far greater,” he said. “We should be rewarding innovation and enterprise-not inadvertently penalizing it.”
His comments also brought into focus the importance of dialogue between business leaders and government policymakers. Black said there needs to be stronger, more consistent engagement between the private sector and state governments to ensure the regulatory environments support economic growth objectives.
Industry groups have largely echoed the BCA CEO’s message: Australia has strong talent, resource capacity, and institutional stability, but it cannot afford to be complacent. Meanwhile, many economists point out that state-level competitiveness is increasingly crucial in the context of global competition for both capital and workforce expertise.
As companies consider expansion plans for the coming year, Black’s interview serves as both a warning and a call to action; the decisions taken by state governments today will determine the direction of Australia’s economic growth, job creation, and global standing in the decade ahead.
“Ultimately,” Black concluded, “our ambition should be the same in every state: to make Australia the best place in the world to build a business, to create jobs, and invest in the future. Getting the policy settings right is how we achieve that.”
