Skip to main content

Business News Releases

‘No flash in the pan’: Productivity problem a long-term challenge

AUSTRALIA'S PRODUCTIVITY continued to stagnate in the December quarter, suggesting that the country's productivity problem may be part of a long-term trend. 

The Productivity Commission's latest quarterly productivity bulletin shows labour productivity declined by 0.1% in the December quarter and by 1.2% over the year.

"The data makes it clear that our productivity problem is not a flash in the pan – this is a long-term, structural challenge that requires dedicated attention from government and industry," said PC Deputy Chair Alex Robson.

In a new article, the PC takes a closer look at the drivers of the COVID 'productivity bubble'. The PC will expand further upon this work in a detailed research paper to be released in the future.

‘The COVID pandemic was a massive global economic shock," Dr Robson said. "The pandemic and the policy response to it drove a sharp rise – and then a crash – in measured productivity. Now that the dust has settled, we're back to the stagnant productivity we saw in the period between 2015 to 2019 leading up to the pandemic. 

"Ultimately the COVID productivity bubble was just that: a bubble. We saw a sharp rise in productivity driven by the lockdowns which was then wiped out as lockdowns ended and hours worked reached record highs," he said.

"There are lessons to be learned from these fluctuations, but they aren't likely to have a meaningful long-term effect on productivity.

"The real issue is that Australia's labour productivity has not significantly improved in over 10 years. With global policy uncertainty again on the rise, addressing productivity directly via targeted reforms will be the best way to sustainably boost Australians' living standards," Dr Robson said.

"To that end, the PC is undertaking a program of five inquiries, each focusing on a different pillar related to productivity. We will identify the highest priority reforms under each of the five pillars which will improve Australia’s long-run productivity growth."

www.pc.gov.au

 

ends

JCPAA publishes report of inquiry into administration of Commonwealth regulations

THE Joint Committee of Public Accounts and Audit has today published the report of its inquiry into the administration of Commonwealth regulations.

The inquiry was informed by audits into regulatory responsibilities of five entities: Department of Health and Aged Care; Aged Care Quality and Safety Commission; Department of Home Affairs; Department of Industry, Science and Resources; and the Australian Taxation Office.

These audits dealt with: management of non-compliance with the Therapeutic Goods Act 1989 for unapproved therapeutic goods; early implementation of aged care reforms; regulation of migration agents; trade measurement; and the management and oversight of fraud control arrangements for the goods and services tax.

Chair of the committee, Linda Burney MP said, "Government regulation has a profound effect on the daily lives of all Australians. When it is administered effectively, regulation protects the public interest, ensures the efficient delivery of services, promotes trust, and improves community safety and wellbeing.

'The committee found that overall the agencies were meeting their requirements but there are areas where improvements could be made. We noted gaps and inconsistencies, as well as partial regulation and, in some cases, failure to regulate effectively."

During the inquiry, the committee also examined the adequacy of the current principles-based policy guidance from the Department of Finance and found regulators required more practical advice on how to go about their regulatory responsibilities.

"To ensure improvements, we made nine recommendations. These deal with specific entity shortcomings discovered during the inquiry, the need for greater transparency and accountability, and the nature of policy advice," Ms Burney said.

The report can be downloaded from the Committee website.

 

ends

Public sector contract management is mixed and requires closer attention

THE Joint Committee of Public Accounts and Audit has released its report on the contract management frameworks operated by Commonwealth entities, which examined whether they are fit for purpose to ensure project delivery and value for money.

The Australian National Audit Office audits examined by the committee revealed areas of good practice in this regard, underpinned by effective governance. They also exposed deficiencies, including insufficient record-keeping and poor documentation of value for money in contract variations.

The inquiry also highlighted the need for entities to maintain an appropriate arm’s length relationship with suppliers and to establish and monitor effective and measurable key performance indicators (KPIs).

Committee Chair, Linda Burney MP, said, "It became clear from this inquiry that value for money cannot be achieved for the taxpayer if a well-managed procurement process is not followed up with effective contract management."

The following requirements are among the committee’s six recommendations:

  1. That the Department of Finance’s annual self-assessment survey for contract management capability becomes mandatory, contains clearer indicators of this capability and that corrective action is taken when shortfalls are revealed.
  2. That the Department of Finance consults with relevant agencies to ensure that guidance and training address weaknesses in contract management, as outlined by the Committee.
  3. That updates be provided on the management of the My Health Record and the Adult Migrant English Program contracts, and on their upcoming tendering processes.

"The Department of Finance has a pivotal role to play in addressing shortfalls in contract management across the Commonwealth. The Department needs to be more than just a policy steward that provides advice and resources," Ms Burney said.

The report can be downloaded from the inquiry website.

 

ends

National Youth Parliament 2026 – House of Reps seeks a supplier

THE Department of the House of Representatives is seeking a suitably qualified and experienced service provider to develop and deliver a National Youth Parliament to be held in Canberra in 2026.

Participants in the National Youth Parliament will have the unique opportunity to learn about aspects of being a Member of Parliament, including the process by which bills are drafted, considered, and pass Parliament to become law.

The provider will manage the event and deliver a program for 150 senior students, one per federal electorate, which complies with all child safety requirements and will achieve best practice educational outcomes.

An open tender is available via AusTender for interested suppliers.

 

ends

Committee reports on the operation of Australia's Magnitsky-style thematic sanctions

THE Human Rights Subcommittee of the Joint Standing Committee on Foreign Affairs, Defence and Trade (JSCFADT) has published its report into the operation of amendments made by the Autonomous Sanctions Amendment (Magnitsky-style and Other Thematic Sanctions) Act 2021.

Chair of the Subcommittee, Maria Vamvakinou MP said, "Sanctions can and do play a vital role in tackling human rights abuses, curbing serious corruption, and addressing other issues of international concern.

"Recent legislative developments have strengthened Australia’s sanctions framework. But as this review makes clear, there are opportunities for us to have an even greater global impact through our use of autonomous sanctions."

This report makes five recommendations aimed at strengthening Australia’s autonomous sanctions framework, including:

  • sanctions decisions be accompanied by detailed reasoning;
  • reasons for sanctions decisions be included in the Consolidated List of sanctioned individuals and entities;
  • the Parliament receive an annual report on sanctions decisions taken during the previous year;
  • the regulations for imposing autonomous sanctions be updated to include listing criteria for all thematic areas;
  • a humanitarian exemption be legislated to ensure humanitarian assistance is not adversely affected by the imposition of sanctions.

The report is now available on the JSCFADT website.

 

ends

Alcohol and Other Drug Issues paper published

THE House of Representatives Standing Committee on Health, Aged Care and Sport has published an issues paper concerning the health impacts of alcohol and other drugs (AOD) in Australia.

After launching an inquiry into this topic on August 22 last year, the committee received more than 200 written submissions and heard from witnesses across seven days of public hearings in Melbourne, Brisbane, and Canberra. This significant level of public engagement underscored the critical importance of efforts aimed at addressing and curtailing AOD-related harms across the country.

"Alcohol and other drug use is not just a health issue – it is a complex social challenge that cuts across multiple measures of wellbeing for communities throughout Australia," Committee Chair, Mike Freelander MP, said.

Highlighting the often complex and wide-ranging consequences of substance use, Dr Freelander noted that "the impacts extend far beyond individual health, touching on critical social issues such as family violence, child protection, community services, and the criminal justice system".

The issues paper explores several key themes underpinning the evidence presented during the inquiry, such as the national coordination of the AOD sector, service demand and provision, prevention and harm reduction strategies, workforce development and tailored support for high-risk population groups.

Recognising the depth and complexity of the inquiry subject matter, the committee acknowledged that multiple aspects of the terms of reference could not be fully explored within the available time frame. The committee has recommended that the inquiry be continued in the next Parliament.

The report is now available on the Committee's website.

 

ends

Inquiry into the challenges and opportunities within the Australian live music industry

THE House of Representatives Standing Committee on Communications and the Arts has today released a report, Am I Ever Gonna See You Live Again?, following its inquiry into the challenges and opportunities within the Australian live music industry.

Over the course of the inquiry, the committee held 18 public hearings in Canberra, Brisbane, Sydney, Melbourne, Adelaide and Perth, and received many submissions from a wide range of stakeholders, including all levels of government, artists, broadcasters, promoters, venues, festivals, service providers and peak industry bodies.

Committee Chair Brian Mitchell, the Federal MP for Lyons in Tasmania, said the inquiry’s recommendations, if taken up by government, would help ensure a strong and sustainable future for live music in Australia.

"It was clear to us that many people across the country are doing a lot of work on live music," Mr Mitchell said.

"There was broad agreement about the myriad challenges and a lot of good ideas about how to grasp the opportunities of a fast-changing technological landscape.

"Our committee hasn’t sought to reinvent the wheel, but rather bring all that work and evidence together in a report and a set of recommendations that are practical and achievable."

The report is being tabled in the parliament out of session and can be found on the Committee’s webpage on the Commonwealth Parliament’s website.

 

ends

PJCIS reports on transport security reforms

THE Parliamentary Joint Committee on Intelligence and Security (PJCIS) has today tabled an advisory report on the Transport Security Amendment (Security of Australia’s Transport Sector) Bill 2024.

The report makes recommendations about proposed amendments to the Aviation Transport Security Act 2004 (ATSA) and the Maritime Transport and Offshore Facilities Security Act 2003 (MTOFSA).

Committee Chair, Senator Raff Ciccone, said, "It has been over 20 years since the ATSA and MTOFSA became law and in that time the threat environment has changed considerably. It is appropriate that the legislative framework governing transport security change along with it.

"The committee’s advisory report makes a number of recommendations — recommendations that seek to improve the bill and make our aviation and maritime industries even safer than they are already."

Further information on the inquiry, and the full report, can be obtained from the Committee’s website.

 

ends

Audit Committee recommends whole of government framework for AI use

THE Joint Committee of Public Accounts and Audit has today released its report on public sector artificial intelligence (AI) use.

The committee examined the current policy settings for AI use across the Federal Government to determine if they were fit for purpose.

Committee Chair Linda Burney said, "These policy and governance frameworks must be equipped to adequately assess the great promise that AI brings but also understand the inherent and significant risks that accompany its use."

The committee’s recommendations include:

  • that the Australian Public Service Commission introduce detailed questions on the use and understanding of AI systems into its annual APS census;
  • that a whole of Government working group be established within 12 months to consider what mandatory rules, governance frameworks and legislation will be needed for AI systems across the Commonwealth;
  • that a statutory Joint Committee on Artificial Intelligence and Emerging Technologies be established to give the Parliament fully effective oversight of how the government and the public service is managing the impacts of AI.

“If effective and coordinated governance frameworks for AI systems are not implemented now, a very real concern of the committee is that this technology will outpace the government’s ability to do so in the very near future,” Ms Burney said.

The report can be downloaded from the inquiry website.

 

ends

Master Builders statement on passing of Brian Seidler AM

MASTER BUILDERS Australia CEO Denita Wawn has announced the building and construction industry "has lost one of its finest leaders" with the passing of Brian Seidler AM, the long-standing executive director of Master Builders Association of NSW. 

"Today, the Master Builders family around the country is mourning the loss of a leader who’s selfless 40-year devotion ensured that the industry’s voice was heard," Ms Wawn said.

"The building and construction industry is in a better place because of Brian Seidler.

"Brian’s tireless, tenacious, and energetic commitment was astonishing, and his legacy is far reaching. We will miss him greatly," Ms Wawn said.

"Our thoughts are with his family and the staff of Master Builders NSW."

www.masterbuilders.com.au

ends

Utilising benefits of Australia’s free trade agreements: Final report published

THE Joint Standing Committee on Trade and Investment Growth has completed its inquiry into the understanding and utilisation of benefits under free trade agreements.

Throughout the inquiry the Committee heard from experts about how to ensure businesses and communities can take advantage of trade opportunities. The Committee focussed on the extent to which small and medium sized enterprises, First Nations, and diaspora communities are able to engage with trade.

The Chair of the Committee, Mr Steve Georganas MP, said: “This inquiry highlighted the strength of Australia as a trading nation and the remarkable success that so many Australian businesses have had in making the most of the opportunities presented by international trade.

However, there is untapped potential. We must continue to ensure that more Australian businesses and communities are able to participate if we are to maximise the economic and social benefits of trade for all Australians.”

The Committee’s report makes thirteen recommendations to Government to boost access of Australian business to the benefits of trade, including by:

  • Publishing more information and data on the uptake and utilisation of trade agreements.
  • Developing a strategy to build awareness and capacity for Australian businesses to engage with trade and trade agreements, including through collaboration with industry bodies.
  • Continuing to work proactively with industry to identify and resolve non-tariff barriers to trade, including advocating for greater standards harmonisation.
  • Accelerating initiatives to streamline requirements and processes involved in accessing trade agreements, particularly relating to rules of origin and certificates of origin.
  • Creating a strategy for enhanced targeted education and outreach programs among groups such as small and medium sized enterprises, First Nations, and diaspora communities.
  • Supporting research to better understand how and to what extent different participants in the economy engage with and benefit from trade and free trade agreements.
  • Providing communications material and trade facilitation initiatives in non-English languages to more effectively engage with local diaspora communities.

Throughout the inquiry, the Committee held public hearings in Canberra, Melbourne, Sydney, and virtually, in addition to receiving 35 written submissions from businesses, industry groups and peak bodies, government agencies, community organisations, academics, and individuals.

The Committee would like to thank all those who have taken part in the inquiry by providing written submissions and giving evidence at public hearings.

The Committee’s final report can be found on the inquiry webpage alongside further information about the inquiry, including the terms of reference, published submissions, and public hearing transcripts.

 

ends

More Articles …