The construction industry is vital to Australia's productivity. However, this report identifies a range of contributing factors to its underperformance, including tax settings, regulation, lack of technology adoption, lack of innovation, unpredictable pipelines of work, poor collaboration, a fragmented sector and small firm size. It calls for policies to lift productivity in construction.

The report looks at the key issues likely to shape economic and policy outcomes in the year ahead. It examines setting Australia up for long-term success, why the labour market must work harder this year, working from home and productivity, and the energy transition.

This paper focuses on the role governments can play in educating businesses about dynamic capabilities, in line with the Australian Government’s ambition of building a more productive, dynamic and resilient economy.

This report explores how Australian businesses perform on key measures of dynamism, and where they are lacking. It offers key lessons for business and government to improve business innovation and performance in times of volatility and uncertainty.