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Productivity Commission

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Associations, Community Health Service
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Community Care
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About
The Productivity Commission is the Australian Government's independent research and advisory body on a range of economic, social and environmental issues affecting the welfare of Australians.

How we contribute
The Productivity Commission is an advisory body. It does not administer government programs or exercise executive power. It contributes by providing quality, independent advice and information to governments, and on the communication of ideas and analysis.

The Commission is an agency of the Australian Government, located within the Treasury portfolio. However its activities cover all levels of government and encompass all sectors of the economy, as well as social and environmental issues.

The core function of the Commission is to conduct public inquiries at the request of the Australian Government on key policy or regulatory issues bearing on Australia's economic performance and community wellbeing.

In addition, the Commission undertakes a variety of research at the request of the Government and to support its annual reporting, performance monitoring and other responsibilities.

The Commission also acts as secretariat to the inter-governmental Review of Government Service Provision, under the auspices of the Council of Australian Governments. And it has a role in advising on the competitive neutrality of Commonwealth Government business activities.

The Commission's four main 'output' streams
Public inquiries and research studies requested by the government.
Performance monitoring and benchmarking and other services to government bodies.
Commission-initiated research and annual reporting on productivity, industry assistance and regulation.
Competitive neutrality complaints.
Why us
How we operate
There are three features of the Productivity Commission's structure and operations which underpin the effectiveness of its contribution to public debate and policy formulation.

Independence
Transparency
Community-wide perspective.
The Commission is independent
The Commission operates under the powers, protection and guidance of its own legislation. Its independence is formally exercised under the Productivity Commission Act through the Chair, Deputy Chair and Commissioners, who are appointed by the Governor-General for fixed periods.

The Productivity Commission has its own budgetary allocation and permanent staff, operating at arm's length from other government agencies. While the Government largely determines its work program, the Commission's findings and recommendations are based on its own analyses and judgments.

The Commission reports formally through the Treasurer to the Australian Parliament, where its inquiry reports are tabled. However, with the statutory requirement to promote public understanding of policy issues, its reports and other communications activities are also directed at the wider community.

Its processes are transparent
The Commission's advice to government, and the information and analysis on which it is based, are all open to public scrutiny. Its processes provide for extensive public input and feedback through hearings, workshops and other consultative forums, and through the release of draft reports and preliminary findings.

It adopts a community-wide perspective
The Commission is obliged under its statutory guidelines to take a broad view, encompassing the interests of the economy and community as a whole, rather than just particular industries or groups. Environmental, regional and social dimensions of its work are also carefully considered, informed by public consultation and the Commission's own research capability.

The Commission's legislative 'instructions'
Improve the productivity and economic performance of the economy.
Reduce unnecessary regulation.
Encourage the development of efficient and internationally competitive Australian industries.
Facilitate adjustment to structural change.
Recognise the interests of the community generally and all those likely to be affected by its proposals.
Promote regional employment and development.
Have regard to Australia's international commitments and the trade policies of other countries.
Ensure Australian industry develops in ecologically sustainable ways.
Government’s expectations
The Government released its Statement of expectations for the Commission in November 2023. It outlines the Government’s expectations of how the Commission will renew and refocus its objectives by:

taking into account the Government’s policy priorities
being responsive to changing economic environments
enhancing its relationships with all Governments
bolstering external engagement and communication methods
strengthening internal culture and capabilities, and organisational governance arrangements.
Business Address
Level 8, Two Melbourne Quarter 697 Collins Street Docklands Vic 3008, Australia,
Docklands VIC 3008, Australia
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