He will say that the Turnbull government's plan to reduce the 30 per cent company tax rate to 25 per cent for all companies over 10 years is inadequate and that the rate needs to be reduced "much more quickly than is presently under consideration by our Parliament".

"Business shapes the economy and right now, business investment is soft," he will say.

"Why? Half of business leaders say a lack of a clear plan for Australia's economic future is holding them back from making investment decisions."

A year ago, the Turnbull government junked plans to increase the rate and base of the GST on the basis that the level of compensation required for low and middle-income earners did not make it worthwhile.

It produced Treasury modelling which showed an increase in the GST rate from 10 per cent to 15 per cent and a broadening of the GST base to include water and sewerage would raise an extra $35 billion.

But the modelling suggested the compensation bill, in the form of welfare top-ups and other forms of assistance to low-income earners, would cost as much as $12 billion and that was before the government negotiated with a populist and obstructionist Senate.

Dr Henry's message will not only be aimed at politicians. He will say business leaders must do much more to advocate reform as well as play an ongoing and active role in public policy to help people cope with the consequences of change.

"We do nobody any favours – least of all our shareholders – when we boast proudly, on the one hand, that we are the source of jobs and incomes but, on the other, insist that we need accept no responsibility for the impact of our business decisions on communities and the environment," he will tell the 2017 Committee for Economic Development of Australia summit.


He will cite research conducted by NAB which shows while 82 per cent of businesses think Australia is a great place to run a business now, only 60 per cent believe it will remain so in 10 years' time.

When asked what was needed to stimulate business growth, business leaders identified population growth, greater certainty in the domestic economy, less red tape, a simpler taxation system, modern and efficient infrastructure and better access to skilled domestic workers.

Dr Henry will argue business cannot just hope for these things without playing a part as both an advocate and facilitator.

"It's up to business to create the case for change. We must start with a realistic assessment of where we are – setting out the challenges and opportunities before us – and a clear road map to the future being described by our citizens.

"Topics that we have traditionally assumed to be in the domain of public policy, and not the stuff of business, are going to have to become our constant preoccupation.

"Australia's business leaders have to accept responsibility for ensuring that strong population growth, and the investment opportunities that go with it, lift economic and social opportunity for all, without damaging the quality of the environment we pass to future generations. That means that we have to take an interest in traffic congestion, housing affordability, urban amenity and environmental amenity, including climate change mitigation and adaptation."

He will say that if business wants better access to skilled workers, "then we are going to have to offer those workers the prospect of better lives".

"If we want modern and efficient infrastructure, then we are going to have to take an interest in the design of our cities, we are going to have to take an interest in regional development, and we are going to have to take an interest in the planning of new urban centres," he will say.

"If we want less red tape and less regulation, then we are going to have to demonstrate that regulation is not necessary.

"And if we want greater certainty in the domestic economy, then we are going to have to start delivering it ourselves."