Ryan Stokes, the chief executive of Seven Group Holdings (SGH), has issued a stark warning that the company is considering moving its investments offshore in response to the Albanese government's tax changes, energy policy, and industrial relations reforms.
Stokes outlines concerns
Speaking at a business forum in Sydney, Stokes said that the cumulative impact of the government's policies is creating an uncertain environment for long-term investment in Australia. He specifically pointed to changes in tax laws, the shift in energy policy away from fossil fuels, and the overhaul of industrial relations as key factors driving the potential move.
“We are a long-term investor, but we need a stable and predictable policy framework to commit capital,” Stokes said. “The current trajectory is making it increasingly difficult to justify keeping our investments onshore.”
Impact on Australian economy
Stokes warned that if SGH, which has significant holdings in media, mining, and energy, shifts its capital overseas, it could have a ripple effect on the Australian economy. He noted that other major corporations are also evaluating their positions, which could lead to a broader exodus of investment.
“This is not just about SGH. Many businesses are watching closely and making similar assessments. If we lose this investment, it will mean fewer jobs, less innovation, and a weaker economy,” he added.
Government response
A spokesperson for Treasurer Jim Chalmers defended the government's policies, stating that the tax changes are designed to make the system fairer and that the energy and IR reforms are necessary for the transition to a net-zero economy and to protect workers' rights.
“The government is committed to creating a business environment that encourages investment while ensuring that the benefits are shared across the community,” the spokesperson said.
Market reaction
Financial analysts have noted that Stokes' comments come at a time when global competition for capital is intensifying. Countries like the United States and those in Southeast Asia are offering attractive incentives to lure investment away from Australia.
“Stokes is sending a clear signal to Canberra that the business community is feeling the pressure,” said economist Dr. Sarah Thompson. “If the government doesn't address these concerns, we could see a significant outflow of capital.”
SGH has not yet made a final decision on moving investments offshore, but Stokes indicated that the company is actively exploring options in North America and Asia. He called on the government to engage with business leaders to find a balanced approach that supports both economic growth and policy objectives.
