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About
How we contribute
How we operate
Our core functions
Our work streams
Our people and structure
Our annual report
Our corporate plan
Our governance
Our history
Productivity Commission Act (external link)

How we operate

Our contribution to public debate and policy formulation is underpinned by three features:

  • Independence
  • Transparency
  • Community-wide perspective.

Our work is based in evidence, underpinned by our analysis of qualitative and quantitative data, and input from businesses, academia and communities.

We are independent

The PC operates under the powers, protection and guidance of its own legislation. Our 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.

We have our own budgetary allocation and permanent staff, operating at arm’s length from other government agencies. While the Government largely determines our work program, our findings and recommendations are based on our own analyses and judgments.

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

Our processes are transparent

Our advice to government, and the information and analysis on which it is based, are open to public scrutiny. Our processes provide for extensive public input and feedback through hearings, workshops and other consultative forums, and through the release of interim reports and preliminary findings.

We adopt a community-wide perspective

We are obliged under 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 our work are also carefully considered, informed by public consultation and our own research capability.

Our legislative guidelines

Under the Productivity Commission Act, we are required to have regard to the need to:

  • 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 our 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.

Statement of intent

In February 2024, we responded to the Government’s Statement of expectations with a Statement of intent. Our corporate plans will integrate performance measures, and annual reports will assess our performance against these measures.