Westpac CEO Anthony Miller has kicked off a new partnership with The Pay Off podcast, opening up to host Sylvia Jeffreys about his earliest lessons in money management. 

 

Miller is the eldest of six children and credits his small-business owning parents for instilling a work ethic from an early age.

 

“Watching mum and dad be so organised and so disciplined… those habits stayed with me.”

  

His parents operate two community swimming pools in Brisbane. “I think it’s [their] calling. Mum runs the [swimming] programme, Dad is still coaching - he’s 80 years old.” 

 

Those observations from his early years lay the groundwork for how he approaches his role as Westpac CEO. 

 

“I felt a responsibility never to let mum and dad down,” he says. That sense of responsibility now extends to customers and communities.

  

Housing remains out of reach for many

When asked what is driving intergenerational inequality, Miller is clear.

 

“The frustration for the younger generation is the opportunity to buy a house,” he says.

 

It’s hard to argue with numbers. “Median income is about $90,000,” notes Miller. Borrowing capacity at five to six times income points to a home around $600,000.

 

And yet, “the median house price in capital cities is over $1 million.”

 

Recent policy proposals may help at the margins. “The reforms promoted in the budget are to create more property for sale for first home buyers. Symbolically, that’s fair,” he says.

 

At the same time, Miller questions whether all elements of the changes align with the broader goal of supporting investment. He admits some surprise at adjustments to the capital gains tax discount on shares, arguing that alternative pathways to building wealth remain important.

 

“I think continuing to incentivise and reward people for investing in shares is a good thing,” he says. 

 

“Until you can buy a house, what are those other investment vehicles that you might pursue?”

 

Back on housing, one constraint remains - supply. 

 

“The budget helps… but it doesn’t solve the equation completely.

 

“If we’re going to solve intergenerational inequity, we have to solve the supply side of housing.” 

 

Productivity remains elusive

Productivity is where Miller sees a clear opportunity.

 

“One of the things that has underwritten Australia’s improvement in living standards over the last 30 years has been productivity,” he says. “The fact we were able to generate more from our labour and more from our capital created a bigger economy… which allows more to be distributed.”

 

That momentum has slowed. “Productivity hasn’t been the focus for the last 15 years.”

 

For Miller, lifting it again is essential to easing pressure across the economy, including housing. Higher productivity supports wages, contains costs and improves overall capacity.

 

The question is how to achieve it. He points to a mix of practical levers.

 

“Have we invested enough in skills? Do we have enough skilled workers? Technology has always been one of the great ways to improve productivity.”

 

Affordability is interconnected, too. “If we can produce more, you should be able to build a house slightly cheaper,” he says.

 

Backing small business to drive growth

His focus on small business is both personal and economic. 

 

“We have to have a bias as a country in everything we do to support small business,” Miller says. “It is the largest employer. It’s a cornerstone of innovation and productivity growth. It’s also the fabric of society.”

 

It is a perspective shaped by his upbringing and reinforced by what he sees across the economy - SMEs support economic growth and create opportunity at a local level.

 

“Let’s make it easier for small business to prosper and for people to invest in them,” he says.

 

These themes converge in a broader question about who gets access - to housing, capital, skills and opportunity - and how.

 

Even in a challenging environment, Miller sees resilience. “Eighty-five per cent of our mortgage customers are one to two years ahead on repayments,” he says.

 

The “remarkable prudence and discipline” of mortgage holders reflects the habits he saw growing up. It also reinforces his confidence that with the right settings in place, Australians will adapt and plan for the long term.

 

For Miller, his role at the helm of Westpac, “is the privilege of a lifetime. I ask myself every day, am I doing the right thing? What more can I do?

 

“I’m a positive person. I’m competitive. I love this country and want it to be better.”