PRODUCTIVITY COMMISSION (PC)

Full Departmental Modelling — Australians Unified Format

 

STEP 1 — WHAT THE PRODUCTIVITY COMMISSION DOES NOW

Portfolio: Treasury Portfolio Agency: Productivity Commission (PC)

Current responsibilities:

  • Conducts independent research and inquiries into economic, social and environmental policy

  • Advises government on productivity, regulation, competition and long‑term reform

  • Evaluates the effectiveness of government programs and policies

  • Provides public reports, recommendations and modelling

  • Oversees performance reporting for government services

  • Conducts cost–benefit analysis and regulatory impact assessments

  • Works with Treasury, Finance, ACCC, ABS, APRA, ASIC and state governments

Who the PC serves:

  • Government and Parliament

  • Businesses and industry

  • Workers and households

  • State, territory and local governments

  • Community and social service sectors

 

STEP 2 — GENERAL OPERATIONS (CURRENT)

  • Conducts public inquiries and commissioned studies

  • Produces economic modelling and long‑term forecasts

  • Evaluates regulation, competition and productivity drivers

  • Reviews government services and public sector performance

  • Engages with stakeholders, industry and community groups

  • Publishes transparent, evidence‑based reports

  • Provides independent advice to government

Operational characteristics:

  • Independent, evidence‑driven institution

  • High‑analysis, high‑integrity environment

  • Strong modelling, economic and policy capability

  • High public visibility and accountability

  • Central role in long‑term national reform

WHY CHANGE IS NEEDED

Key challenges:

  • Slow productivity growth across the economy

  • Rising cost‑of‑living pressures

  • Ageing population and workforce shortages

  • Rapid technological change and digital disruption

  • Fragmented data across government

  • Legacy modelling systems

  • Need for stronger long‑term economic planning

  • Increasing regulatory complexity

If unchanged:

  • Slower economic growth

  • Reduced competitiveness and innovation

  • Higher long‑term fiscal pressures

  • Weaker public sector performance

  • Reduced trust in government decision‑making

 

STRENGTHS

  • Strong independence and credibility

  • Skilled economic and policy workforce

  • Deep institutional knowledge

  • High public trust in evidence‑based analysis

  • Strong cross‑government influence

WEAKNESSES

  • Legacy modelling systems

  • Slow inquiry cycles

  • Limited real‑time data integration

  • High complexity in regulatory systems

  • Workforce shortages in digital and analytics roles

THREATS

  • Global economic shocks

  • Cybersecurity risks

  • Rapid technological disruption

  • Workforce shortages

  • Rising regulatory complexity

 

OPPORTUNITIES

  • AI‑enabled productivity modelling

  • Unified national economic intelligence platform

  • Modernised inquiry and evaluation systems

  • Stronger regulatory and competition reform

  • Transparent public dashboards

FUTURE MODEL (AI‑ENABLED, INDEPENDENT, LONG‑TERM)

A. National Productivity Intelligence Platform

  • Unified economic and productivity data architecture

  • Real‑time dashboards for productivity, wages, innovation and regulation

  • AI‑enabled forecasting and scenario modelling

  • Integrated PC–Treasury–ABS modelling environment

B. Modernised Inquiry & Evaluation System

  • Automated evidence gathering

  • Faster inquiry cycles

  • Digital public submissions and engagement tools

  • Transparent, accessible reporting

C. Workforce, Skills & Innovation Modelling

  • Long‑term workforce forecasting

  • Skills and training system modelling

  • Industry transformation pathways

  • Innovation and R&D productivity analysis

D. Regulation & Competition Reform

  • National regulatory burden mapping

  • AI‑enabled regulatory impact assessments

  • Competition and market efficiency modelling

  • Red tape reduction and simplification

E. Public Sector Performance & Service Delivery

  • Whole‑of‑government performance dashboards

  • Program evaluation and cost–benefit analysis

  • Productivity benchmarking across agencies

  • Integrated reporting with Finance and Social Services

F. Long‑Term Economic & Social Planning

  • 10‑, 20‑ and 30‑year productivity outlooks

  • Climate, demographic and technological modelling

  • National resilience and supply chain forecasting

STRATEGIC ROADMAP

PHASE 1 — FOUNDATION (Years 1–2)

  • Build unified productivity data architecture

  • Deploy AI modelling pilots

  • Modernise inquiry and evaluation systems

  • Launch workforce and regulatory mapping

PHASE 2 — ACCELERATION (Years 2–4)

  • National intelligence platform

  • Industry transformation modelling

  • Public sector performance dashboards

  • Regulatory and competition reform

PHASE 3 — EXPANSION (Years 4–6)

  • Predictive modelling

  • Real‑time dashboards

  • Long‑term planning systems

PHASE 4 — FUTURE‑READY (Years 6–10)

  • Fully integrated productivity ecosystem

  • Automated reporting

  • Continuous improvement

 

STEP 8 — PORTFOLIO HIGHLIGHTS (PUBLIC‑FACING)

  • National leadership in productivity, reform and long‑term planning

  • AI‑enabled modelling and real‑time economic intelligence

  • Modern, transparent inquiry and evaluation systems

  • Stronger regulatory and competition reform

  • Public sector performance dashboards

  • Integrated national economic data ecosystem

  • Better outcomes for households, businesses and the economy

COSTING MODEL (PHASED)

BASELINE FUNDING (REDUCED)

$0.65B per year (Reduced from $0.92B — 30% efficiency gain)

PHASE 1 — YEARS 1–2

$0.45B – $0.65B

  • AI modelling pilots

  • Unified productivity data architecture

  • Modernised inquiry systems

  • Workforce capability uplift

PHASE 2 — YEARS 2–4

$1.20B – $1.60B

  • National Productivity Intelligence Platform

  • Regulatory and competition reform modelling

  • Public sector performance dashboards

  • Industry transformation modelling

PHASE 3 — YEARS 4–6

$0.90B – $1.30B

  • Predictive modelling

  • Public dashboards

  • Long‑term planning systems

PHASE 4 — YEARS 6–10

$2.20B – $3.00B

  • Fully integrated productivity ecosystem

  • Automated reporting

  • Continuous improvement

New Policies

 1, Our first priority is raising the tax-free threshold from $18,200 to $45,000.

This reform will allow low and middle-income earners to keep more of their income—approximately $4,000 —to help deal with the increase in cost-of-living expenses.2, 

2,  Childcare subsidy payments to go directly to parents so they can decide how best to care for their children

Policies Amendments

1,  Allow first home buyers, disabled,  and students to use %50 of there super earning yearly to go towards there student hecs debt or home loans.

Policy removals

1, The removal of Gst payments for all retired people over 70 in the form of a yearly return on their tax lodgment on all retirees who earn less than $100000 a year