"We want to see more business investment, and this is a challenge for

productivity in this country,'' he said.

"So we are having a discussion with key stakeholders about other ways that we can boost investment, and those decisions will be decisions at budget time.

"That is the sort of timetable we are working towards."

A dig at Boral

By not implementing such a policy any sooner, the government will protect its plans to return the budget to surplus in this financial year, 2019-20.

Mr Frydenberg took a swing at Boral chief executive officer Mike Kane after Mr Kane rejected the Treasurer's call last week for business to spend less on share buybacks and dividends, and more on capital investment.

"I don’t wait to be told by politicians as to what we’re supposed to do," Mr Kane said.

"What we're doing is what's in the best interests of Boral and its shareholders in the long run."


Mr Frydenberg said the bulk of business leaders endorsed his speech and Mr Kane should reflect on Boral's 38 per cent drop in net profit for 2018-19.

"I think it was Mike Kane who didn't have a ripper number to talk about himself. He would have been better off spending time looking in his own backyard,'' the Treasurer said.

Investment allowance

Shadow treasurer Jim Chalmers has called for the mid-year economic and fiscal outlook (MYEFO) to be brought forward from its December release date and turned into a mini-budget, with such measures as an investment allowance for business.

Labor went to the last election promising an Australian Investment Guarantee in which all businesses in Australia would be able to immediately deduct 20 per cent off any new eligible asset worth more than $20,000.

As The Australian Financial Review reported last week, a scheme being considered by the Coalition would be available only to businesses that increased their investment activity above business as usual levels.

The Business Council of Australia said "we will continue to press the case for an investment allowance and advocate for the reduction of unnecessary red tape and regulation which strangles job creation and growth".

Master Builders Australia also called for action.

“What’s urgently needed is an acceleration of infrastructure projects to the construction phase and more discussion of measures to encourage business investment,'' said chief executive Denita Wawn.

"We need investment in new plant, equipment and other assets to be sharpened so that the appetite for growth and expansion returns.''