Policy and demographics are changing the character of Australia’s social safety net. Cash transfers like JobSeeker and Family Tax Benefit are shrinking. Meanwhile, ‘in-kind’ transfers like government-subsidised education, disability and health care are increasing quickly. This paper uses survey microdata to detail how rising in-kind transfers are changing who receives government support.

Government policy often supports small businesses through lower taxes, lighter labour regulation and grants. Yet this paper finds it is actually young firms that play the most outsized role in economic dynamism in Australia. Using firm-level microdata, the paper draws out this important distinction between firm size and age in firms’ economic contribution, highlighting three...

Amid an evolving range of international approaches, this report finds that the Australian Government is yet to provide a clear direction for AI regulation. It highlights the importance of regulatory certainty as an enabler of AI-driven productivity. It outlines five principal channels for productivity gains: labour-improving tools, automation, firm-level reorganisation, sectoral reallocation and knowledge creation.

The Australian economy is unusual, in both what it produces and its policy settings. Policymakers cannot borrow blindly from overseas. Researchers need to do their part by providing careful analysis of Australian circumstances. In that vein, this report sketches five unusual features of Australia’s economic structure.

Has the increased use of non-compete clauses (NCCs) by Australian firms reduced workers’ ability to switch jobs and bargain for higher wages? This paper examines the use of NCCs and other post-employment restraints and finds workers at firms that use NCCs extensively are paid 4 per cent less on average than similar workers at similar...