In this episode of DBrief, Jeff Wilson turns the tables and interviews Louise McGrath about a series of major policy developments shaping the operating environment for Australian industry.

The conversation begins with artificial intelligence, following the Prime Minister's announcement of a new Office of AI. The discussion examines what the shift means for businesses, how Australia's approach compares internationally, and why issues such as trust, copyright, data centres and social licence are becoming increasingly important as AI adoption accelerates.

Recent AI policy interventions from China and the Vatican also feature, highlighting the broader questions societies are grappling with as AI reshapes economies, workplaces and daily life. There is a growing intersection between AI and cybersecurity, including new warnings from the Five Eyes intelligence partnership about the pace at which AI is changing both cyber threats and cyber defences.

Finally, the discussion explores new US tariff measures linked to forced labour concerns, the implications for global supply chains, and how Australia's modern slavery framework is evolving as regulatory expectations continue to rise.

Key takeaways

• The establishment of a new Office of AI signals a more coordinated, whole-of-government approach to AI policy, governance and data centre development.
• Building public trust and social licence will be critical to unlocking the economic and productivity benefits of AI.
• China is positioning itself as a major global AI power through large-scale deployment, open-source technologies and international capability-building initiatives.
• The debate around AI is increasingly moving beyond technology and into broader questions of ethics, governance and societal change.
• Five Eyes agencies are warning that frontier AI models will rapidly transform both offensive and defensive cyber capabilities, with impacts measured in months rather than years.
• Businesses need stronger cyber awareness, governance and workforce training as AI tools become more deeply embedded in daily operations.
• New US tariff measures linked to forced labour requirements are creating additional complexity for international trade and supply chains.
• Australia's modern slavery framework is evolving, with businesses facing growing expectations around supply chain transparency and accountability.

Contact the Industry Development & Policy team here.

In this episode of DBrief, Louise McGrath speaks with Simon Dowding from Pact Group about the future of packaging, recycling and Australia's efforts to build more resilient supply chains.

The discussion begins with the impact of recent disruptions to global resin markets following the conflict in Iran, and how packaging manufacturers have responded by diversifying supply chains, increasing inventory and reducing exposure to international shocks. While immediate supply pressures have eased, the experience has reinforced broader questions about Australia's reliance on imported materials.

Louise and Simon explore the role of recycled plastics in strengthening sovereign capability and reducing dependence on imported virgin resin. They also examine proposed extended producer responsibility reforms, including how they could encourage better packaging design, stronger recycling markets and increased use of locally produced recycled materials. Along the way, they explain some of the technical realities of different polymers, food-grade packaging requirements and why a one-size-fits-all approach is unlikely to work.

Key takeaways

• Australia remains heavily dependent on imported virgin plastic resins despite having significant opportunities to recover and reuse local materials.
• Recycled plastic can improve supply chain resilience by reducing exposure to international market volatility and import disruptions.
• Stronger demand for recycled content is needed to support investment in domestic recycling capability.
• Extended producer responsibility aims to shift responsibility for packaging waste toward those placing packaging on the market.
• Different materials and polymers face different technical constraints, meaning recycled content targets should be staged and material-specific.
• Traceable, locally produced recycled resin can provide quality, transparency and supply advantages compared with imported alternatives.
• Better packaging recovery and recycling can support sovereign capability, reduce landfill pressure and create new manufacturing opportunities.

Contact the Industry Development & Policy team here.

In this episode of DBrief, Louise McGrath speaks with Lee Hickin, Executive Director of the National AI Centre, about Australia's AI adoption journey and what it will take for businesses to move from experimentation to meaningful impact.

The discussion explores the gap between widespread use of AI tools and the slower pace of business transformation. Louise and Lee examine why many organisations remain cautious, how confidence and trust shape adoption decisions and what responsible AI looks like in practice for Australian businesses.

They also discuss the role of the National AI Centre and AI Adopt Centres in helping organisations build capability, navigate risk and identify practical opportunities for AI deployment. The conversation looks ahead to emerging developments such as agentic AI, Australia's role in the global AI ecosystem, and where the nation can build competitive advantage through its own strengths in areas such as healthcare, agriculture and highly regulated industries.
 
Key takeaways

• Australia is a strong adopter of AI tools, but many businesses are still using them in limited and relatively shallow ways.
• Confidence, trust and leadership are often bigger barriers to adoption than technology access or infrastructure.
• The National AI Centre aims to support adoption through practical guidance, capability building and clearer understanding of risk and opportunity.
• AI governance should be proportionate to the size, capability and risk profile of an organisation.
• Businesses that are progressing with AI tend to combine strong leadership, AI literacy and clear communication about its purpose.
• Agentic AI presents significant opportunities but should be viewed through the lens of business outcomes rather than technology hype.
• Australia’s biggest AI opportunity is not building the next ChatGPT, but applying AI to industries where we already have expertise, unique data and a global competitive advantage.

Links mentioned in this podcast episode:

• National AI Centre
• Artificial Intelligence: Positive for companies, their people, and Australian Industry

Contact the Industry Development & Policy team here.

In this episode of DBrief, Louise McGrath speaks with Kristian Stratton from Australian Industry Group Apprentice and Trainee Centre about one of the biggest challenges facing Australian industry: finding the workers needed to support growth, infrastructure, manufacturing and essential services.

The conversation examines two critical parts of the workforce equation. First, Louise and Kristian discuss the role of apprenticeships, drawing on the Australian Industry Group’s Apprentice and Trainee Centre, which has employed and supported apprentices for more than six decades. They explore the benefits of the group training model, the importance of mentoring and pastoral care, and the barriers that are contributing to declining apprenticeship commencements.

The discussion then turns to Australia's skilled migration system and its role in addressing immediate workforce shortages. Louise and Kristian consider the economic contribution of skilled migrants, the sectors experiencing the most acute shortages, and why migration and domestic training work best as complementary solutions rather than competing priorities.

From housing and healthcare to defence and manufacturing, the episode highlights why long-term workforce planning will require both stronger apprenticeship pathways and a more efficient skilled migration system.

Key takeaways

• The Australian Industry Group Apprentice and Trainee Centre employs apprentices directly and supports businesses through recruitment, training coordination, mentoring and pastoral care.
• Apprenticeship commencements have declined significantly, with employer costs, administrative complexity and changes to incentive programs contributing to weaker participation.
• Large employers play a critical role in apprenticeship training, particularly for underrepresented groups, yet recent policy changes have reduced available incentives.
• Defence, manufacturing, construction and infrastructure projects are expected to drive substantial future demand for skilled trades.
• Skilled migrants have high workforce participation rates and make a significant economic contribution to Australia.
• Construction, healthcare, engineering and manufacturing continue to face major workforce shortages that cannot be met through domestic training alone.
• Long visa processing times and slow recognition of overseas qualifications remain significant barriers to attracting skilled workers.
• Workforce challenges require both increased investment in apprenticeships and a more effective skilled migration system, rather than treating the two as competing solutions.

Links mentioned in this podcast episode:

• Australian Industry Group Apprentice and Trainee Centre - Be part of the real action
• Submission: Inquiry into the value of skilled migration to Australia | Australian Industry Group

Contact the Industry Development & Policy team here.

In this episode of DBrief, Dr. Jeff Wilson speaks with Innes Willox, CEO of Australian Industry Group, about the Federal Budget’s capital gains tax changes and what they mean for investment and the economy.

They discuss how these proposals have dominated the budget narrative, despite a range of positive business measures on tax, investment and regulation. The conversation traces how the changes emerged outside earlier reform discussions and why they have prompted such a strong response from industry.

They also explore the impact on businesses in practical terms, from the treatment of long‑term investments and the role of risk in capital allocation, through to the implications for startups, small businesses and larger firms. Particular attention is given to concerns around complexity, retrospective application and the potential for changes in investment behaviour both domestically and internationally.

The episode also considers what this moment reveals about the broader tax system — including its complexity, structural weaknesses and the challenges of delivering meaningful reform — as the debate continues in Parliament.

Key takeaways

• The budget included several business‑supportive measures, but these have been overshadowed by the proposed capital gains tax changes.
• The capital gains measures were not a central part of earlier reform discussions, contributing to uncertainty and strong reactions from industry.
• The changes may alter investment decisions, particularly in relation to risk‑taking, long‑term capital allocation and startup activity.
• Retrospective elements and increased complexity are key concerns for businesses navigating the new framework.
• The current approach highlights ongoing structural challenges in Australia’s tax system, including reliance on income taxes and system-wide complexity.
• Effective tax reform requires coordinated, whole‑of‑system design rather than isolated policy changes.
• Confidence in reform depends on consultation, transparency and rigorous policy development processes.
• The outcome of the current debate may influence how future governments approach tax reform in Australia.

Contact the Industry Development & Policy team here.

In this episode of DBrief, Louise McGrath speaks with Rod Balding, CEO of Standards Australia, about why standards are far more than technical documents and how they shape safety, markets and Australia’s strategic position in a changing global environment. They explore how standards underpin everyday products and infrastructure - from housing and transport to emerging technologies - and why they are often invisible until something goes wrong.

Louise and Rod discuss the findings of Standards Australia’s recent end‑to‑end review, including a shift toward greater stewardship, earlier engagement on contentious issues, and efforts to improve speed, usability and collaboration across committees.

The episode looks beyond Australia to the global stage, examining how international alignment can reduce trade friction while allowing for local adaptation, and how standards are increasingly being used as tools of strategic influence in areas such as digital technologies, energy systems and critical materials.

Key takeaways

• Standards underpin safety, quality and consistency across a wide range of products, infrastructure and industries, often without being visible to end users.
• Misconceptions persist that standards act as barriers, but they are more accurately enablers of trust, interoperability and market development.
• A recent review is driving a shift toward more active stewardship, earlier issue resolution and greater efficiency in development processes.
• Volunteer experts play a critical role in shaping standards, and sustained engagement is essential to ensure outcomes reflect industry and community needs.
• Aligning with international standards helps reduce trade friction, while local adaptations remain necessary in areas such as climate and safety conditions.
• Standards are increasingly part of geopolitical and economic strategy, particularly in emerging technologies like AI, cybersecurity and quantum.

Contact the Industry Development & Policy team here.

In this episode of DBrief, Louise McGrath and Dr. Jeff Wilson from the Australian Industry Group unpack the 2026-27 Federal Budget and assess how it measures up against the economic reform agenda set at last year’s productivity roundtable.
 
They revisit the key priorities discussed at the roundtable - particularly productivity, regulatory reform and tax simplification - and examine where the budget has delivered progress and where momentum has stalled. The conversation highlights several practical wins, including expansion of the Trusted Trader program, further removal of nuisance tariffs, and initial steps toward a more consistent national approach to product standards, the construction code and regulatory reporting.
 
Louise and Jeff also explore areas where reform remains incomplete. While there are signs of progress on reducing regulatory burden and improving coordination across governments, more complex challenges - including tax simplification, payroll tax harmonisation and the design of the R&D tax incentive - remain unresolved. The episode reflects on how these decisions affect day‑to‑day business operations, from trade and compliance to investment and innovation.
 
Key takeaways

• Expansion of the Trusted Trader program and removal of nuisance tariffs will reduce compliance costs and friction in cross‑border trade.
• Progress toward a single economic market is emerging, including steps to align product standards, workforce regulation and the building code implementation across states.
• The “tell us once” principle signals intent to reduce duplication in regulatory reporting, though implementation is still underway.
• Tax simplification - a core ask from industry - saw little progress, with complexity remaining a significant burden for business.
• Payroll tax harmonisation remains unresolved, despite being a major operational challenge for national businesses.
• Changes to the R&D tax incentive provide some benefits at the large end of the market but may limit access for smaller firms and do not address underlying complexity.

Links mentioned in this podcast episode:

• Federal Budget 2026/27 - Federal Budget measures for business

Contact the Industry Development & Policy team here.

In this episode of DBrief, Louise McGrath speaks with Ash Salardini, CEO of Australian Sugar Manufacturers, about the role biofuels - particularly ethanol - could play in strengthening Australia’s fuel security as the conflict in Iran continues to disrupt global supply.

The conversation explores why ethanol is being raised again as a practical policy option, and how a national ethanol mandate could help cushion Australia against price shocks, supply disruptions and low fuel stock levels. Ash explains what has changed since earlier debates on ethanol, including vehicle compatibility, fuel standards and emissions performance, and why demand certainty is critical for attracting private investment.

Louise and Ash discuss how a national mandate could be designed to mirror successful energy policy frameworks, where existing government programs align with this agenda, and where gaps remain. The episode also examines certification and integrity under the Guarantee of Origin scheme, the realities of feedstock supply, concerns about food versus fuel, and how sugar‑based biofuels could support longer‑term sovereign capability, regional development and the decarbonisation of harder‑to‑abate sectors such as aviation.

Key takeaways

• A national ethanol mandate could simultaneously improve fuel availability, reduce price volatility and lift Australia’s fuel reserve coverage.
• Australia already has sufficient ethanol production capacity to meet an initial national mandate, with scope to scale significantly over time.
• Past concerns about vehicle compatibility and fuel quality no longer apply to the modern vehicle fleet or current fuel standards.
• Demand certainty - rather than supply‑side subsidies - is the key constraint holding back investment in biofuel expansion.
• Current fuel security responses focus overwhelmingly on oil‑based fuels, despite ethanol being immediately available domestically.
• A credible Guarantee of Origin scheme is essential to support market confidence, investment and export credibility for biofuels.
• Biofuel growth can complement food production, particularly through the use of existing biomass rather than competing feedstocks.
• Ethanol offers a near‑term, cost‑effective pathway to emissions reduction, with longer‑term potential for aviation and maritime fuels.

Contact the Industry Development & Policy team here. 

In this episode of DBrief, Louise McGrath and Jeff Wilson from the Australian Industry Group return to the conflict in Iran, as impacts move beyond fuel prices and deepen across industrial supply chains. 

They explain why businesses may be entering a new stage of the shock - shifting from monitoring risk to absorbing real costs, operational uncertainty and disruption. The discussion highlights how freight and insurance withdrawals, shipping diversions and emergency surcharges are becoming early pressure points, well before widespread product shortages emerge. 

Drawing on member intelligence, Louise and Jeff explore where risks are building across critical inputs including resins, plastics, packaging, nitrile gloves, construction materials and bitumen. They examine why Australia’s position at the end of long petrochemical supply chains matters, how force majeure notices are amplifying uncertainty, and why the effects of this crisis are likely to persist well beyond any near‑term resolution. 

Key takeaways 

• The impact of the Iran conflict is no longer limited to fuel prices, with freight, insurance and shipping disruptions now flowing through supply chains. 
• Critical inputs such as resins, packaging materials, nitrile gloves, PVC products and bitumen are emerging as key pressure points. 
• Force majeure notices and unclear delivery timelines are making investment, workforce and production planning more difficult for businesses. 
• Government responses are evolving, with fuel security measures, supply chain coordination and economic resilience tools being prepared if shortages worsen. 
• Businesses are moving beyond “wait and see”, actively assessing supply chain exposure, working with employees, and planning for reduced fuel and material availability.  

Further information and resources: 

• Experiencing fuel or supply disruptions? Report impacts on your business here. We would welcome any information you can provide. 
• Australian Industry Group is monitoring the evolving impacts of the conflict in the Middle East on Australia's fuel supply and broader supply chains. Read more. 

Contact the Industry Development & Policy team here. 

In this episode of DBrief, Louise McGrath and David Martin from the Australian Industry Group discuss the final report of the Strategic Examination of Research and Development in Australia and what it means for industry, innovation and productivity.

They explain why the review was commissioned, how Australia compares with its OECD peers, and what is at stake if current settings remain unchanged. The conversation explores what makes this review different from past efforts, including its whole‑of‑system approach, focus on execution, and recommendations to consolidate funding programs and sharpen national priorities.

Louise and David unpack the implications for CEOs, startups and SMEs, including proposed changes to the R&D tax incentive, efforts to reduce administrative burden, and the risks of shifting funding away from business‑led innovation. They also examine calls for stronger national coordination through a National Innovation Council, and the persistent challenge of translating world‑class research into commercial outcomes.

The episode highlights why long‑term policy certainty, better collaboration between industry and universities, and genuine reform - rather than more reviews - will matter for Australia’s future competitiveness.

Key takeaways

• Australia continues to lag comparable economies on business R&D and research translation.
• This review takes a holistic, system‑wide view and places heavy emphasis on execution.
• Consolidating programs aims to reduce complexity, but funding trade‑offs remain contentious.
• Changes to the R&D tax incentive could improve access, but raise concerns for some SMEs.
• Stronger national coordination is intended to provide clearer priorities and long‑term certainty.
• Productivity gains depend on translating research into products, services and jobs - not research alone.

Further information and resources:

Download the Australian Government’s Strategic Examination of Research and Development report here

Australian Industry Group’s submissions:

• Strategic Evaluation of R&D
• Strategic Examination of R&D: Response to Issues Papers 1-4
• Strategic Examination of R&D: Response to Issues Papers 5-6

Contact the Industry Development & Policy team here.