Wesfarmers boss Rob Scott fears Australia’s ‘less hospitable tax settings’ will force investment offshore
Rob Scott said Australia’s ‘less hospitable tax settings’ could force companies investing in the nation’s resources and oil and gas sectors offshore.
Wesfarmers boss Rob Scott has warned Australia’s “less hospitable tax settings” could force companies investing in the nation’s resources and oil and gas sectors offshore.
The head of Australia’s biggest conglomerate — which owns retail brands Kmart, Target, Bunnings, as well as fertiliser and chemicals business WesCEF — is most concerned with what he calls “second order implications”.
“If you think about our businesses and our country, we are a real beneficiary of some very strong and significant resources companies,” Mr Scott said during the group’s strategy day in Sydney on Wednesday.
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By continuing you agree to our Terms and Privacy Policy.“Certainly, our WesCEF business benefits from the ongoing investment and development and success of the Pilbara iron ore businesses, the gold companies, now lithium businesses.
“I do worry that a number of those companies — be they Australian companies or international companies that invest in resources or oil and gas — will be more encouraged to invest offshore by virtue of the less hospitable tax settings and regulatory settings within Australia.”
Last month’s Federal Budget unveiled changes to negative gearing, capital gains tax and the taxation of trusts.
Wesfarmers is set to ramp up its use of artificial intelligence to boost productivity across the group and create “superior and sustainable shareholder returns”.
Mr Scott said Wesfarmers wanted to advance the responsible use of artificial intelligence to drive long-term sales and earnings growth.
This includes AI tools for shoppers, AI assistants for Wesfarmers team members, merchandising efficiency, supply chain optimisation and contact centre efficiency.
The West Australian in December revealed Wesfarmers had been trialling what it calls AI-driven “conversational commerce”, allowing customers to type in more conversational questions in search bars to help them better discover products across its businesses.
Mr Scott on Wednesday flagged potential consumer concerns about the use of new technologies like agentic and generative AI.
“Our approach to the deployment of AI ultimately aligns with the Wesfarmers operating model. This isn’t something new,” he said.
“This is not about just chasing after the new shiny thing or focusing on technology for the sake of it.
“This is about enhancing the benefit for our customers, our team members, and ultimately delivering a return on the investment.”
A day after a closely followed survey by Westpac and the Melbourne Institute revealed Australian consumer sentiment was now at some of the weakest levels seen in 50 years, Mr Scott said Wesfarmers was “well positioned to generate superior returns through the cycle”.
“I think we have the capacity to withstand a fair degree of market volatility better than most companies,” he said.
Hardware giant Bunnings is now targeting an addressable market of $113.5 billion as it expands its categories offering, including into pets and cleaning, smart home, automotive and workwear.
Meanwhile, Kmart Group boss Aleksandra Spaseska revealed its booming house brand Anko was set to open another five stores in the Philippines by the end of the 2027. It currently has five standalone stores.
