CPA Australia says output per hour worked is below a year ago
Australia’s stronger-than-expected GDP growth in the June quarter has not resolved the country’s productivity problem, CPA Australia said on 2 September 2026.
Business and Investment Lead Gavan Ord said the economy grew largely because Australians worked more hours, while higher exports and increased spending in selected sectors also lifted the result.
“While the headline GDP figure is slightly better than expected, productivity remains the economy’s weak spot. Output per hour worked is lower than it was a year ago – we are working more, not working smarter,” Mr Ord said.
Electric vehicles and coal exports lifted growth
Stronger demand for electric vehicles and higher coal exports also contributed to growth. However, Mr Ord argued that the bigger issue in the latest figures was weak productivity rather than the headline GDP number.
“The real story behind today’s figures is Australia’s continuing productivity problem. Without stronger productivity growth, it becomes more difficult to lift wages sustainably, improve living standards and strengthen long-term prosperity,” Mr Ord said.
He urged governments to focus on reforms that cut unnecessary costs and barriers for businesses. According to CPA Australia, that includes reducing red tape, creating a more business-friendly operating environment and making sure the tax system supports investment and growth.
“Getting the economy back on track requires a laser-like focus on productivity-enhancing reform,” Mr Ord said.
Mr Ord said artificial intelligence could become a significant driver of future productivity growth, echoing Treasury’s view. Meanwhile, he warned that AI alone would not solve Australia’s productivity challenge.
He said structural reforms were still needed to improve tax and regulatory settings and give businesses more confidence to invest, innovate, create jobs and expand.
CPA Australia also called for policies that encourage business investment, innovation and entrepreneurship. It said stronger private sector activity and higher productivity are essential to improving living standards and supporting Australia’s long-term economic future.
Mr Ord said the stronger GDP result was encouraging, but he added that Australia would not become more prosperous unless productivity started rising again.
CPA Australia has more than 176,000 members across more than 100 countries and regions. Its work includes education, training, technical support and advocacy, and it engages with governments, regulators and industries on economic policy.
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