Barton Deakin Brief: Review of Australia's Productivity Performance
BARTON DEAKIN BRIEF: Review of Australia’s Productivity Performance
Wednesday 23 February 2022
The Morrison Government has asked the Productivity Commission to undertake its second five yearly review of Australia’s Productivity Performance. These reviews can be influential in setting priorities for future policy changes. The Commission has called for submissions, these are open until 23 March 2022. The Review will be released in 2023.
- The Productivity Commission has asked for interested parties to consider issues and reform areas that would be most likely to enhance productivity growth. Questions to answer in submissions may include:
- What are the key drivers of productivity growth that governments should be influencing?
- Which reform(s) should governments prioritise to improve productivity in the next couple of years and in the longer term?
- Have other countries implemented leading practice productivity-enhancing reforms that could be relevant for the Australian context?
Terms of reference
- Analyse Australia’s productivity performance in both the market and non-market sectors, including an assessment of the settings for productive investment in human and physical capital and how they can be improved to lift productivity.
- Identify forces shaping Australia’s productivity challenge as a result of the COVID-19 pandemic and policy response.
- Consider the opportunities created for improvements in productivity as a result of Australia’s COVID-19 experience, especially through changes in Australia’s labour markets, delivery of services (including retail, health and education) and digital adoption.
- Identify priority sectors for reform (including but not limited to data and digital innovation and workforce skills) and benchmark Australian priority sectors against international comparators to quantify the required improvement.
- Examine the factors that may have affected productivity growth, including domestic and global factors and an assessment of the impact of major policy changes, if relevant.
- Prioritise and quantify the benefit of potential policy changes to improve Australian economic performance and the wellbeing of Australians by supporting greater productivity growth to set out a roadmap for reform.
- Revisit key recommendations and themes from the previous five yearly review in light of the above, where relevant.
- 7 February 2022: Inquiry announced.
- 21 February 2022: Call for submissions.
- 23 March 2022: Initial submissions due.
- February to August 2022: Stakeholder meetings and roundtables.
- July to September 2022: Consultation documents released by Productivity Commission.
- August and September 2022: Public hearings.
- September 2022: Final submissions due (TBA).
- February 2023: Final report to Government.
- 2023: Final report released.
You can access the Treasurer’s media release here.
You can access the Productivity Commission’s call for submissions paper here.
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