Why did Challenger (ASX:CGF) highlight a decline in national economic performance?

Challenger (ASX:CGF) noted that Australia’s productivity fell 0.7% in 2024 due to an economy-wide slump across nearly all major industries. This drop placed the nation 29th out of 39 advanced global economies.

What are the specific research investment numbers for the Australian economy?

The Organisation for Economic Co-operation and Development reported that Australia directed 1.1% of gross domestic product into research and development in 2024. According to Challenger (ASX:CGF), this level of funding falls significantly behind global peers like the United States, which invests 3.5%.

How is the federal government altering tax incentives to address the productivity slump?

The federal government is expanding the research and development tax incentive by raising the maximum expenditure threshold from $150 million to $200 million effective July 1, 2028.

What does the recent data mean for long-term domestic productivity averages?

Data monitored by Challenger (ASX:CGF) shows that Australia's average productivity growth rate collapsed to just 0.1% over the past five years. This marks a drop from the historical growth averages of roughly 1.5% recorded during the 2000s.

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Australia's productivity falls 0.7% in 2024

Written by Isaac FrancisPublished Jul 2, 2026, 10:00 PMLast Updated Jul 6, 2026, 10:10 AM

The Organisation for Economic Co-operation and Development found Australia's productivity fell 0.7% in 2024.
The data ranked Australia 29th out of 39 advanced economies, behind New Zealand.
The federal government is expanding research tax incentives to address the multi-year economic slump.

The Organisation for Co-operation and Development highlighted new international data showing Australian productivity fell 0.7% in 2024.

The decline ranked Australia 29th out of 39 advanced economies, lower than New Zealand.

“There’s no disputing Australia’s productivity performance over the past eight years has been anaemic,” said Challenger (ASX:CGF) Chief Economist Jonathan Kearns.

The report showed Australia directed 1.1% of gross domestic product into research development.

Following the announcement, the Challenger share price was unchanged at $6.50.

The average domestic productivity growth rate over the past five years was 0.1%.

Low productivity growth across nearly all industries suggests the current economic problem is economy-wide.

Australia's productivity falls 0.7% in 2024

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