In 2020, all Australian governments, along with the Coalition of Aboriginal and Torres Strait Islander Peak Organisations, signed the National Agreement on Closing the Gap (the Agreement). They committed to mobilising all avenues available to them to achieve the objective of the Agreement – which is to overcome the entrenched inequality faced by too many Aboriginal and Torres Strait Islander people so that their life outcomes are equal to those of all Australians’.

The Productivity Commission’s first review of the Agreement shows that governments are not adequately delivering on this commitment. Progress in implementing the Agreement’s Priority Reforms has, for the most part, been weak and reflects a business-as-usual approach to implementing policies and programs that affect the lives of Aboriginal and Torres Strait Islander people. Current implementation raises questions about whether governments have fully grasped the scale of change required to their systems, operations and ways of working to deliver the unprecedented shift they have committed to.

This draft report sets out the Productivity Commission’s findings and recommendations on the ongoing implementation of the National Agreement on Closing the Gap by highlighting areas of improvement and emphasising where additional effort is required.

Key messages:

• The Agreement sits within an evolving landscape. 
• The Agreement’s reforms have not been prioritised by governments.
• Stronger accountability mechanisms are needed to drive change.
• Progress is falling short of expectations.