Treasurer Jim Chalmers has unveiled his overhaul of the Productivity Commission, pivoting the 25-year-old organisation to focus on digital transformation, climate change, an ageing population and geopolitical risks.
As former Grattan Institute chief executive Danielle Wood prepares to take over the commission, Dr Chalmers has unveiled its first statement of expectations.
The Treasurer is also urging the commission be more transparent and communicative, particularly with States and Territories, industry and the community.
“Australia’s longstanding productivity challenge will take time to turn around,” Dr Chalmers late on Thursday said ahead of announcing the changes.
“We want a refocused and renewed PC to be a key source of world-class, practical advice when it comes to productivity and prosperity and progress more broadly.”
Australia’s productivity growth has slumped in recent years and has come under increased scrutiny as nominal wages have increased but productivity growth has not kept pace. The Reserve Bank of Australia has particularly urged a lift to help keep inflation in check.
The Government has told the commission to particularly focus on major transitions, trends and forces that will affect the national economy in coming decades. These include digital and technological transformation, the transition to a net-zero economy and climate change, an ageing population and increased demand for care and support services, as well as increased shifts in the global economy such as fragmentation and heightened geopolitical risks.
Dr Chalmers has also encouraged the commission to produce more timely and concise reports, with practical recommendations.
The overhaul, agreed to by Ms Wood, has been nine months in the making.
The Treasurer said better and more practical reporting would help inform the Government’s “broad and ambitious productivity agenda”.
Ms Wood said the changes would ensure the commission was relevant and made an impact for “years to come”.
“I am excited to be taking on the role of Chair in a period where the Australian Government has reaffirmed the centrality of the PC as its pre-eminent independent research and advisory body,” she said.
The changes to the commission follow the review into the Reserve Bank of Australia, with the Government expected to introduce key legislation changing its governance into Parliament later this month.