'No shortcuts': Productivity Commission warns on tough road to gains
The pandemic productivity bump was a blip. Productivity Commission deputy chair Alex Robson says we must look to tax, red tape and investment as global uncertainty grows.
The Productivity Commission is not expecting the Albanese government to launch sweeping economic reforms to address the nation’s productivity challenges. However, a potential reduction in the corporate tax rate and a renewed appetite for cutting red tape are high on the agenda.
These priorities are top of mind for Productivity Commission deputy chair Alex Robson, who has released a new report examining the productivity “bubble” that occurred during Covid-19. As the pandemic unfolded, the rate of productivity — after years of languishing — unexpectedly improved.
The main drive behind the improvement was the shutdown of industries such as hospitality and the arts which are, on paper, less productive. It was a blip.
As Robson explained to Capital Brief, there is no silver bullet for lifting productivity in the long term and “no shortcuts” to raising future living standards.
