Australia is 'ungovernable': Gerry Harvey

Harvey Norman chief executive Gerry Harvey has said Australia should install a dictator following the federal election's split decision on Saturday.

The outspoken billionaire told The Daily Telegraph that Australia has become "ungovernable" since former prime minister John Howard was ousted in 2007.

“Neither side can do anything about it because the minute they do they’re hammered. The only cure we’ve got is to have a dictator like in China or something like that. Our democracy at the ­moment is not working,” Harvey said.

“In that period we’ve had five prime ministers and New Zealand’s had one. The whole world now, with what’s happening in England, Europe and America, there’s a great deal of dissatisfaction with mainstream politics and the people are showing their frustration.”

While not all business leaders would agree with such extreme measures, the election result has left the government's tax relief for businesses up in the air.

As part of the 2016 budget, the federal government proposed tax reductions for small businesses starting from 1 July 2017.

Businesses earning $10 million or less in revenue were to have their tax rate reduced from 28.5 percent to 27.5, and continue to lower to 25 percent by 2026-27. The tax cut threshold would continue to expand to reach $100 million by 2019-20.

Given the less-than-favourable outcome for the Liberal Party after the election, the current federal government may face even more hostility in the Senate to pass the tax reforms.

Australian Industry Group chief executive Innes Willox told ABC News that Australia was at risk of losing its AAA credit rating unless whoever forms government can pass budget repair measures.