Finance’s share of the Australian economy is higher than ever, leaving us vulnerable to a growing global liquidity bubble, writes Michael Gill.

Australia has become an economy burdened down with debt. The burden may feel light now, with interest rates so low, but as they rise it will become heavier, and slow our capacity to grow.

One focus of this paper is on the fiscal incentives faced by state governments and how these incentives cause regulatory problems. This suggests reforms to the federation, worthwhile for many reasons, will also assist in cutting back Australia’s red tape burden.

AI, robotics and other forms of smart automation have the potential to bring great economic benefits, contributing up to $15 trillion to global GDP by 2030 according to this analysis. This extra wealth will also generate the demand for many jobs, but there are also concerns that it could displace many existing jobs.

Australia’s sound governance, political stability and transparent regulatory system build economic resilience and minimise sovereign risk. In an uncertain world, Australia is a safe and secure place to invest and do business.