Productivity Commission

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The Productivity Commission is the Australian Government's principal review and advisory body on microeconomic policy and regulation. It responds to references from the Treasurer. For example, its work includes: researching the economic implications of ageing in Australia, reviewing the gas access regime, the effects of the disability discrimination act, and the economic effects of removing tariffs on goods from least developed countries.

The reference from the Treasurer may require a commissioned study or a public inquiry. In a public inquiry the Productivity Commission (PC) will accept submissions from any member of the public, and will usually issue a 'draft' report on which further submissions are accepted. The PC also has responsibility for assessing the application of safeguard measures under the World Trade Organisation guidelines.

The guiding principles of the commission are to be independent of government and industry, and open to public participation. Its reports often form the basis of government policy. However, the Treasurer and government are not required to act on Productivity Commission recommendations and may give no response or refuse to act.

The Commission was established in April 1998 by legislation. The Governor-General of Australia appoints commissioners for periods of up to five years. Associate Commissioners are appointed by the Treasurer. The Chairperson is a commissioner and heads the commission. The current Chairman is Mr Gary Banks. The commission also has a public-service staff.

The Commission has reported on a very wide range of subjects and industry. Due to the in-depth nature of its analysis and influence over government policy, the Productivity Commission is often a useful starting point for information on the Australian economy or specific Australian industries.