Productivity growth ensures future generations can live better and more prosperous lives than those that came before them. But Australia’s productivity growth has stalled since 2016. In Growth mindset: how to boost Australia’s productivity the challenges facing productivity growth in Australia were outlined. 

Across five inquiries, 47 reform recommendations were made to support productivity growth across the economy. Taken together, these recommendations highlight 3 key principles for productivity growth. This paper sets out those reform principles and provides an overview of recommendations in the five pillars of productivity inquiries to meet those challenges.

The paper argues the reforms in these inquiries would strengthen the drivers of productivity growth in Australia. Increasing investment, spurring innovation, improving labour mobility and reducing unnecessary regulatory handbrakes are surefire ways to boost competition and productivity growth. The reforms would also improve wellbeing and quality of life, and some would support progress towards targets in the National Agreement on Closing the Gap.

Reform principles

1. New ideas – and the way we use them – are the foundation for growth.
2. Investing in people and capital brings productivity dividends.
3. Governments should regulate with growth in mind.