Productivity Commission#History

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 (under the Act) 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.

The PC is headed by a Chair and between 4 and 12 other Commissioners, who are appointed by the Governor-General for periods up to five years. Some commissioners are required to have particular skills and experience:

:(a) in applying the principles of ecologically sustainable development and environmental conservation

:(b) in dealing with the social effects of economic adjustment and social welfare service delivery

:(c) acquired in working in Australian industry

:(d) dealing with policies and programs that have an impact on Indigenous persons and dealing with one or more communities of Indigenous persons.

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 182.{{cite web|title=Annual Report 2023–24|url=https://www.pc.gov.au/about/annual-report/annual-report-2023-24|publisher=Productivity Commission|access-date=12 November 2024}}

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.

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{{cite web|title=Strengthening Trans-Tasman Economic Relations|url=https://www.pc.gov.au/inquiries/completed/australia-new-zealand|publisher=Productivity Commission|access-date=16 July 2022}} and in a 2019 report on Growing the Digital Economy in Australia and New Zealand.{{Cite web|url=https://www.pc.gov.au/research/completed/growing-digital-economy|title=Growing the Digital Economy and Maximising Opportunities for Small Medium Enterprises (SMEs) – Productivity Commission Research Paper|last=Commission|first=corporateName:Productivity|date=2019-02-14|website=www.pc.gov.au|language=en|access-date=2019-12-10}}

Danielle Wood became the PC's first female Chair on 13 November 2023.

A documentary was produced in December 2024 [https://www.pc.gov.au/ongoing/trade-assistance/50-years Opening Australia to the World: Celebrating 50 editions of the Trade and Assistance Review].

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Category:Economy of Australia

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Category:1996 establishments in Australia

Category:Government agencies established in 1996

Category:Productivity organizations