TURNBULL GOVERNMENT INITIATES FIVE YEARLY INQUIRY INTO AUSTRALIA’S PRODUCTIVITY PERFORMANCE
The Turnbull Government has tasked the Productivity Commission to undertake five yearly inquiries into Australia’s productivity performance and provide recommendations on productivity-enhancing reform.
Improving Australia’s economic performance and living standards depends on us working smarter and more efficiently. Put simply, productivity is about producing more goods and services with the same level of resources. Productivity growth will be the number one driver of future income growth.
The Turnbull Government is enhancing Australia’s productive potential by implementing reforms that promote competition and improve the tax system, supporting innovation an d entrepreneurship, negotiating new trade agreements, investing in infrastructure and reducing regulatory burdens.
However, all Australian governments must keep identifying and supporting future sources of productivity enhancements to drive growth. That is why the Turnbull Government has released the terms of reference for the first in a series of five-yearly reviews into Australia’s productivity performance. The inquiry will identify opportunities to enhance Australia’s performance giving consideration to the implementation of recent reforms.
We need to make sure that our policy settings can support productivity growth by ensuring that the economy is flexible and is able to adapt in the face of current and future economic challenges and opportunities.
This inquiry represents a new frontier in advice for the Productivity Commission by allowing it to identify priority reform areas across all sectors of the econom y. It will complement the Commission’s usual approach of inquiring into a single sector or area of government policy.
This new process will complement the Intergeneration Report (IGR) initiative introduced by Treasurer Costello by providing a regular and accountable process that puts forward policy answers to the questions that are posed forward by the IGR. The Productivity Commission is due to report to Government within 12 months. Information will be available on the Productivity Commission’s website – www.pc.gov.au