Bold reality check: productivity must rise to lift living standards in Australia.
Feb 18, 2026 – 7.25pm
NAB chief executive Andrew Irvine warns that Australia may have reached a plateau he calls “peak Australia,” and that without a productivity boost, further growth could stall. This warning comes as new data show real wages retreating for the first time in two years, underscoring the economic headwinds facing the Albanese government.
Irvine’s remarks arrive amid high-profile, sparring commentary: Prime Minister and Treasurer direct sharp criticisms at former Reserve Bank of Australia governor Philip Lowe for challenging the government’s productivity strategy and ongoing cost‑of‑living support measures.
Background notes:
- James Thomson is a senior Chanticleer columnist based in Melbourne and a former Companies editor and BRW Magazine editor.
- John Kehoe serves as economics editor at Parliament House, Canberra, reporting on economics, politics, and business. He previously covered Donald Trump’s 2016 campaign from Washington and joined the Financial Review in 2008 from Treasury.
- Patrick Durkin is Melbourne bureau chief and BOSS deputy editor, covering news, business, and leadership.
- Lea Jurkovic is the Australian Financial Review’s economics correspondent, based in Canberra.
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Would you like more context on how productivity translates into higher living standards, or examples of how productivity metrics influence real wages and growth? And what’s your take: should policymakers prioritize aggressive productivity initiatives, or focus more on immediate cost-of-living relief? Share your view in the comments.
