Five pillars of productivity inquiries

The Productivity Commission has called on Australia to adopt a ‘growth mindset’ in an overview of five forthcoming interim reports of its inquiries into boosting Australia’s productivity.

The overview sets out the causes of Australia’s stagnant productivity growth and what we stand to gain by getting it moving.

‘Australia should be a place where children born today can expect to live better and more prosperous lives than the generations who have come before them. Productivity growth is essential to fulfilling that promise,’ said PC Chair Danielle Wood.

In the past ten years, productivity grew by less than a quarter of its 60-year average.

‘If we could boost growth from its current level to its historic average, adult Australian full-time workers would be at least $14,000 a year better off by 2035,’ said Ms Wood.

The draft recommendations in the PC’s interim reports are a starting point for productivity boosting reform.

‘Productivity growth happens when we improve our skills, technology and ways of working so that for each hour worked we produce more and higher quality goods and services,’ said Ms Wood.

‘It’s the reason life today looks so different from life in the ‘60s and ‘70s. Since that time our material living standards have increased threefold. Simple things, like buying a loaf of bread, going to the movies, and even flying from Melbourne to Sydney have gotten much cheaper. We’re healthier, safer, and fewer of us live in poverty.’

‘Governments don’t hold all the cards when it comes to boosting productivity, but their policy choices can make a real difference.’

‘Almost everything government does – taxing, regulating, delivering services – affects the pace and direction of economic growth.’

‘Bringing a growth mindset to policy decisions means elevating economic growth and its benefits. That doesn’t mean policy makers should ignore other objectives, but it does mean being clear-eyed about the trade-offs.’

‘No single policy change will guarantee our prosperity – we need to make smart reforms across a range of areas to drive sustainable productivity growth.’

The interim reports into each of the five aspects of Australia’s productivity challenge will be released over the next three weeks. The first, released next Thursday (31 July), shows how the Australian Government can boost business investment and growth to create a more dynamic and resilient economy.

Release schedule

Creating a more dynamic and resilient economy: Thursday 31 July, 10:30 pm AEST

Investing in cheaper, cleaner energy and the net zero transformation: Sunday 3 August, 10:30 pm AEST

Harnessing data and digital technology: Tuesday 5 August, 10:30 pm AEST

Building a skilled and adaptable workforce: Monday 11 August, 10:30 pm AEST

Delivering quality care more efficiently: Wednesday 13 August, 10:30 pm AEST

Upon release, Growth mindset can be found at: https://www.pc.gov.au/inquiries/current/productivity-pillars

For media enquiries, call our media team on 02 6240 3330 or email media@pc.gov.au.

Read more about the Five productivity inquiries