Australia has positioned itself to be the world’s most attractive place for global capital as a new era of geopolitical uncertainty and rapid technological change reshapes investment flows, Treasurer Jim Chalmers has told investors at the Citi A50 Australian Economic Forum in Sydney.
Chalmers framed the international environment as an “intense global contest for capital” and argued Australia’s strong fundamentals, clean-energy potential, digital capabilities and
Indo-Pacific location have made it a standout as the world confronts higher borrowing costs and shifting power dynamics.
Drawing on historical context, Chalmers recalled former US Federal Reserve chair Ben Bernanke’s 2005 “global savings glut” speech, noting that “what was once a global savings glut has become an intense global contest for capital.” He added: “The world had too much saving and too little investment… For a generation, money was cheap and it was plentiful.”
He said that has reversed, driven by demographic shifts, quantitative tightening, China’s economic transition and surging global investment demand.
“The supply side of capital is tightening just as the demand side is exploding,” he said.
Chalmers told investors he wants Australia to be “the destination where global investment flows first and grows fastest”, adding: “When you run the numbers – when you test risk, return and reliability – our goal is for Australia to be at the top of your models.”
Pitch to capital markets
The Treasurer emphasised Australia’s labour market strength, saying the government has “maintained the lowest average unemployment rate of any government in 50 years, with more than 1.1 million jobs created since mid-2022”.
He noted the International Monetary Fund expects Australia to outpace G7 economies for growth in 2026, while Fitch has reaffirmed Australia’s AAA credit rating.
He highlighted the nation’s clean-energy and critical minerals potential, ranking among the world’s top holders of lithium, manganese and rare earths, and pointed to emerging digital advantages including “investment in intellectual property… nearly doubled to about 19 per cent of all business investment”.
Geographically, he described Australia as “a trading nation in the world’s fastest-growing region”, with more than three-quarters of trade and more than half of investment flows tied to the Indo-Pacific.
Policy and investment agenda
Chalmers used the speech to outline reforms designed to unlock private capital, including foreign investment changes, the Future Made in Australia agenda, production incentives for net-zero industries, the Capacity Investment Scheme and a new Net Zero Fund.
He cited “more than $300 billion” in net investment growth last year and “around $30 billion in net equity inflows” in the first half of 2025 as evidence of rising global confidence in Australia.
The government has also launched consultation on a second wave of foreign investment reforms (FIRB), including automatic approvals for low-risk proposals from trusted investors.
“Our goal is a FIRB regime that is much stronger where risks are high and much faster where risks are low,” he said.
“The opportunities ahead of us won’t come automatically,” Chalmers concluded. “They’ll be earned through clear priorities, considered and methodical work, and close working relationships between government and investors like you.”
