CANBERRA - Australian Prime Minister Anthony Albanese has identified stimulating growth and productivity as key economic priorities of his government's second term in power.

In a major speech delivered on Friday in Sydney outlining his second-term economic vision, Albanese said that the Australian economy is "turning a corner," prompting a shift in his Labor Party government's primary focus from bringing down inflation to boosting growth and productivity.

Australia's annual rate of underlying inflation fell to a four-year low in May, while productivity and gross domestic product growth have stagnated.

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The prime minister said that productivity challenges have been over a decade in the making and that turning them around would take time.

He said that his government wants the private sector to resume its "rightful place" as the primary source of economic growth.

The government will, in August, host leaders from businesses, trade unions and civil society as well as experts for a landmark three-day economic reform roundtable at Parliament House in Canberra.

Albanese said that the government was seeking a broad range of views at the summit to build a broad agreement for action, with tax reform to form an "important part" of the agenda but not the whole of it.

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He said that the defining test Australia faces this decade is whether the country can work together to seize opportunities and that there is nothing for the country to gain from the "economic self-harm of tariffs."