Productivity Commission told keep Treasury informed as part of revamp

A statement of expectations for the commission which Dr Chalmers said had been formulated following nine months of consultation with stakeholders, economists and other experts, calls for much closer engagement and collaboration between the commission and Treasury.

"The government expects that Treasury and the [commission] will maintain a close relationship," the statement said. "Treasury is expected to take into account the views and analysis of the [commission] when considering and advising on productivity-enhancing reform."

As part of this, the government wants the commission to keep the Treasury secretary informed of "all information, briefings, press releases and correspondence provided to ministers" as well as "significant meetings between the [commission] and ministers and other parliamentary bodies".

Dr Chalmers said the statement of expectations for the "key economic institution" had been agreed to by incoming commission chair Danielle Wood, who commences on November 13.

The statement outlines the government's vision to harness the commission to advise it on major economic trends and developments including the net zero transition, population ageing, digital transformation and rising geopolitical risks as part of a significantly expanded role for the organisation.

The government wants the commission to "take account" of the government's productivity agenda and broader policy objectives and priorities while at the same time modernising and expanding its structure and operations.

As part of its demands, the government wants the organisation to investigate and advise on "major forces, trends and transitions" that will affect the economy in coming decades, including technological developments, climate change, demographic shifts and the evolving international environment.

In the statement, Dr Chalmers also charges the commission with sharpening its focus on key economic developments, considering the practical implications of its recommendations, diversifying its skills base and data capabilities and improve its communications, external engagement and governance arrangements.

"We want a refocused and renewed [commission] to be a key source of world-class, practical advice when it comes to productivity and prosperity and progress more broadly," the treasurer said.

"This will help inform the Albanese Government's broad and ambitious productivity agenda that is focused on promoting economic dynamism, resilience and competition, building a skilled and adaptable workforce, harnessing data and digital technologies, delivering quality care more efficiently, and realising the opportunities of the net zero transformation."

Ms Wood said the statement, "outlines a vision to ensure the [commission] is relevant and impactful for years to come. I look forward to leading the renewal of this crucial institution."

Among changes expected in the way the commission operates, the government wants the commission to produce shorter and more timely reports, and ensure they are better informed by a diversity of views gained through more diverse data sources and greater consultation with those affected.

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The statement also calls for the commission to enhance its engagement with the states and territories, "modernise" its communications with the public and update and strengthen its governance arrangements, including establishing code of conduct for the commissioner and assistant commissioners.