Australia's Productivity Commission will be tasked to find new growth opportunities for the national economy as it continues to break free from its pandemic shackles.
Subscribe now for unlimited access.
or signup to continue reading
The federal government has announced a new five year productivity review which could see swath of new recommendations to overhaul the country's economic framework.
Treasurer Josh Frydenberg on Monday confirmed the Productivity Commission would outline a new road map to find a number of reforms to boost activity over the next five years.
"To ensure our economy remains resilient and Australians continue to enjoy higher living standards, we need to continue to focus on the task of lifting productivity," Mr Frydenberg said.
It is understood the review following on from the 2017 'Shifting the Dial' report, will analyse growth opportunities in both market and non-market sector and include potential reforms on data, digital innovation and skills.
The review's terms of reference also shows a significant scope will relate to the ongoing response to the pandemic and future challenges it may have for the nation's productivity level.
Mr Frydenberg said the economy during the pandemic had remained resilient, but noted it was vital the economy maintained a competitive edge.
The treasurer also noted productivity was responsible for up to 80 per cent of the country's national income growth over the last three decades.
READ MORE:
"The COVID-19 pandemic will see long lasting changes in how we work and live while the challenges of an ageing population will continue to change the structure of our economy."
"This provides a unique backdrop for the Productivity Commission to conduct its second five yearly review of Australia's productivity performance following on from its Shifting the Dial report in 2017."
The Productivity Commission will have 12 months to deliver the report.
The review is expected to place great emphasis on the digital economy, particularly opportunities in data, innovation and aligning skills for future sectors.
Labor's treasury spokesman Jim Chalmers slammed the announcement of the review, highlighting the decade ending 2020 saw the slowest rise income growth since the second world war.
"To really get productivity moving we need investment in energy, technology, infrastructure and human capital - in people not politics," Dr Chalmers said.
"Poor productivity performance means a smaller economy, growing slower than it could be, and another decade of failed productivity targets would leave hardworking Australians worse off."
Mr Frydenberg outlined the review at a speech given to the Australian Industry Group.
The scope of the report will also look at identifying sectors in need of reform.
