Ensuring good conditions in general for business while exerting pressure for strong domestic competition are key for Australia’s producitivty potential particularly given the small size of local markets and distance from major world markets. There has been a welcome policy campaign to boost innovation, though more could be done.
- Concentrate on improving conditions for business in general, prioritise corporate-tax rate cuts and reduce regulatory burdens.
- Strengthen competition: pay particular attention to energy and telecommunications, develop more competitive delivery systems for human services such as health, welfare and education.
- Further strengthen university-business linkages.
Source: OECD May 2017 Economic Outlook database
Productivity Commission Productivity Update (annual).
Productivity Commission Report on Government Services (annual).
Mckinsey & Company, Beyond the Boom: Australia’s productivity imperative .
Productivity - enhancing institutions
Standing bodies: in addition to the national level Productivity Commission (established in 1998), there are also several state-level bodies (for instance the Independent Pricing and Regulatory Tribunal, the Queensland Productivity Commission).
Ad hoc task forces: numerous task forces have been commissioned on policy issues that have strong linkages to productivity (in addition to work commissioned through the Productivity Commission). One recent example is the The ‘Harper Competition Review’ (2015).