Jim Chalmers welcomes Productivity Commission recommendations amid Labor’s productivity push

The Productivity Commission is expected to call for submissions on 15 reform recommendations on Monday — a move welcomed by Treasurer Jim Chalmers.

Dr Chalmers in December formally tasked the Productivity Commission with conducting five inquiries to identify priority reforms to help counter Australia’s productivity decline.

The 15 recommendations will be aimed to help raise wages, boost national income, and make Australia’s economy future-proof without fuelling inflation or increasing government debt. Dr Chalmers said the invite for submissions on the initiatives would be the initial step with the findings expected to be presented at a later date.

“We might not be able to run with everything, but we will consider all of it and see what we can progress,” he said.

“The Albanese Government already has an ambitious productivity agenda and we’re eager to build on it.”

Alongside the Commission’s actionable advice, Labor’s agenda has included streamlining approval processes, changes to merger laws, abolishing non-compete clauses, and unlocking opportunities in AI and digital assets.

Less than 24 hours after Labor’s thumping election win handing the PM a significantly increased majority, Dr Chalmers declared the focus of the second term of the Albanese Government would be productivity.

When Dr Chalmers asked the Productivity Commission for advice in December, it included a focus on five key areas including, boosting economic dynamism, building a skilled workforce, harnessing digital technology, improving care delivery, and supporting the shift to cleaner, cheaper energy.

“Flatlining productivity is one of the biggest challenges facing our nation, and that’s why we need a big national effort to turn it around,” Dr Chalmers said.

“It will take longer than two terms to turn around this productivity problem which has been building in our economy for decades, but we know that this work will make a meaningful difference in boosting wages and living standards sustainably into the future.”

The Productivity Commission had reported a 0.1 per cent decline in the December quarter and warned the issue was a long-term structural challenge.

It found a post-COVID “productivity bubble” driven by pandemic policy response had burst and the nation had reverted to the sluggish growth pattern recorded between 2015 and 2019.