Productivity Commission


The Productivity Commission is the Australian Government's principal review and advisory body on microeconomic policy, regulation and a range of other social and environmental issues.
The PC was created as an independent authority by the Productivity Commission Act 1998, an Act of the Australian Parliament. PC reports often form the basis of government policy. However, the PC does not administer government programs or exercise executive power and governments are not required to act on its recommendations; although in practice, many recommendations are accepted.

Functions

The PC operates within the Treasury portfolio and its core function involves responding to references from the Treasurer, which can request a commissioned study or a public inquiry. References to the PC stipulate the length and terms of the project and may cover any sector of the Australian economy; address a particular industry or cut across industry boundaries; and involve wider social or environmental issues.
Most projects are specified for nine or twelve-month duration, although some may be six or fifteen months. Both studies and inquiries accept submissions from members of the public, although inquiries are additionally required to undertake formal public consultations. All reports are publicly released.
In addition, the PC acts as the secretariat to the intergovernmental Review of Government Service Provision, and produces annually the Report on Government Services, as well as regular reports that contribute to a better understanding of the effectiveness of government services provided to Aboriginal and Torres Strait Islander peoples.
The PC can undertake Commission-initiated research, and operates as the Australian Government's competitive neutrality complaints mechanism.

Operation

The PC is headed by a Chair and between 4 and 12 other Commissioners, who are appointed for a five year term on the advice of the treasurer. Some commissioners are required to have particular skills and experience:
Associate Commissioners can be appointed by the Treasurer on a full or part-time basis. PC staff are Commonwealth public servants. The average number of employees in the 2021-22 financial year was 179.
The PC reports formally through the Treasurer to the Australian Parliament, where its inquiry reports are tabled. Final inquiry reports must be tabled in Parliament within 25 sitting days of the Government receiving the report.
What makes the PC unusual among public sector institutions around the world is the combination of three core principles which it embodies:
  • Independence — The commission operates under the protection and guidelines of its own legislation. It has an arm's length relationship with the Government. While the Government largely determines its work program, it cannot tell it what to say and the commission's findings and recommendations are based on its own analyses and judgments.
  • Transparency — The commission's advice to government, and the information and analysis on which it is based, are 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.
  • A community-wide focus — 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 considered, informed by public consultation and the commission's own research capability.

    Appointments

Chairs

NameDates
17 April 1998 – 31 December 2012
Peter Harris AO11 March 2013 – 10 September 2018
Michael Brennan11 September 2018 – 10 September 2023
Danielle Wood13 November 2023 – 12 November 2028

Deputy Chairs

Commissioners

History

Timeline

The PC traces its lineage back to the Tariff Board, which was established in the 1920s. On 1 January 1974, the Tariff Board became the Industries Assistance Commission and then in 1989 it became the Industry Commission.
The PC was created as an independent authority in April 1998 by the Productivity Commission Act 1998, and replaced the Industry Commission, the Bureau of Industry Economics and the Economic Planning Advisory Commission. These three bodies were amalgamated on an administrative basis in 1996.
The PC's remit may extend beyond Australia, such as when the PC worked jointly with the former New Zealand Productivity Commission on a study into Trans-Tasman Economic Relations in 2012 and in a 2019 report on Growing the Digital Economy in Australia and New Zealand.
Danielle Wood became the PC's first female Chair on 13 November 2023.
A documentary was produced in December 2024 .

Predecessor agencies