Productivity is the most powerful tool we have for improving our economic wellbeing. It represents the organisation, capital and technology we apply in the production of the things we need and want.

Although Australia is a federation with a powerful central government, state governments control many of the levers most crucial for raising our productivity. The NSW Productivity Commission has focused on practical recommendations that meet four criteria:

1. They provide the greatest productivity gains at the lowest social cost.
2. It is feasible to identify and address the problem.
3. New South Wales can implement reforms directly, without complex and lengthy negotiations with the Commonwealth, or other States and Territories.
4. They align with other NSW Government priorities—particularly the Premier’s priorities for enhancing quality of life, the NSW 2040 Economic Blueprint, the Treasurer’s goals for the Commission, and the Government’s 3R (Respond, Recover, Reform) response to COVID-19.

The paper specifically makes recommendations about:

Regulation: Regulation should support our health and safety, not get in the way of new ideas. Updated technologies offer opportunities to make regulation work better for all of us.

Water & Energy: Safe, efficient and affordable utilities are vital for homes and businesses across NSW. Planning for the future of energy and water requires consideration today.

Taxation: Broad reforms are needed to deliver a new tax system which is fairer, more competitive, more effective and less complex.

Infrastructure: NSW can get ahead of the demand and build the infrastructure we need to serve a growing and ageing population and address projected infrastructure pressures.