The NSW government has decided to establish their own Productivity Commission to focus on key issues impacting both people and business.
Speaking to the NSW Business Chamber earlier this week, NSW Treasurer Dominic Perrottet said that the Commission will drive the development of the government’s productivity agenda with core themes including lowering the cost of living, improving housing affordability, enabling ease of doing business as well as making NSW the easiest place to move to for both businesses and individuals.
To be modelled on the federal Productivity Commission, the NSW version will be led by a dedicated Productivity Commissioner who will be supported by an advisory body to address multiple challenges including regulatory reforms.
For instance, even a 20 percent reduction in regulatory compliance costs could boost NSW’s gross state product by $6 billion in the long run, according to the federal Productivity Commission.
Underlining the need for regulations to be ‘necessary, simple, effective, relevant and targeted’, Perrottet says the NSW government has already achieved success in this area by reducing paperwork and simplifying processes.
Calling for the heavy burden of regulatory compliance to be cast off, he says the new commission would help drive the ‘next frontier in reform’ by providing the momentum to change NSW for the better.
While NSW has a massive infrastructure program in place with a $80 billion spend over four years, the gains from the building boom, which is attracting business investment in the state, will not last forever.
Faced with challenges such as an ageing population, slow wage growth and the rising cost of living, the government, according to Perrottet, is focussed on securing the long-term fortunes of the state’s economy and ensuring everyone enjoys the benefits of continued growth.
A review of payroll tax administration, which the Business Chamber estimates can cost an individual business up to $10,000 every year, is expected to be taken up by the NSW Productivity Commission on priority.
Professor Gary Banks, former chairman of the Commonwealth Productivity Commission will advise the government on establishing the Commission.