This study assessesthe impacts of COAG reforms in two areas:
aspects of the 'Seamless National Economy' regulatory reform priorities
vocational education and training (VET).
As most of the reforms being assessed have only just been implemented or are to be implemented, most benefits are yet to occur.
Forward looking (ex ante) assessments of potential changes, together with information obtained during this study, have been the starting point for determining likely impacts.
Given the early stage of most reforms, judgements have had to be made. This is particularly the case in estimating the progress and impact of the OHS reforms, given the uncertainties, including the dynamic effects.
The Commission's assessment is that the reforms being considered could raise output and income in all jurisdictions.
Seamless National Economy reforms are aimed at reducing the regulatory burden imposed on firms that operate in multiple jurisdictions. Full implementation could ultimately provide cost reductions to business of around $4 billion per year.
After a period of adjustment, national output (GDP) could be increased by nearly one half of a per cent (around $6 billion per year).
Based on current plans, the majority of these gains could accrue by 2020.
Guided by achievement of reform milestones, reform reward payments should, as far as practicable, be linked to the achievement of reform outputs and outcomes.
Vocational education and training reforms are aimed at improving the overall quality of the workforce and encouraging higher workforce participation, through increased VET provision and greater flexibility in courses offered.
Attainment of the COAG 2020 targets potentially could raise GDP by two per cent.
It would also assist in achieving COAG’s broader social inclusion goals.
Increased efforts by governments will be required if the potential of the COAG agenda is to be realised.
A number of areas offer opportunities for even better outcomes. In particular:
a more systematic approach to identifying and implementing business regulation reforms
initiatives to increase VET completion rates
ensuring VET reforms are sequenced so that the building blocks are in place for the successful transition to more contestable markets including:
strengthening quality control throughcost-effective independent validation and auditing of training organisations’assessment practices, as well as
making information available to students on the costs of training, quality and labour market outcomes for individual training organisations.