Leigh Defends Productivity Inquiry Scope

Assistant Productivity Minister Andrew Leigh says the government excluded its tax and workplace relations policies from a Productivity Commission inquiry.

Updated on Nov. 6, 2026 in Economic Policy

Leigh Defends Productivity Inquiry Scope

Live Poll

Do you trust the government's tax changes to improve business productivity?

Assistant Productivity Minister Andrew Leigh defended the government's decision to exclude its tax and workplace relations policies from a Productivity Commission inquiry. The commission reported that labour productivity fell 0.2 per cent in the year to the June quarter.

Why it matters

Business groups have criticised the inquiry's narrow terms of reference, arguing it leaves key policy areas unexamined. The government said it would not make sense to ask the commission to assess policies not yet implemented.

Labour productivity fell 0.2 per cent in the year to the June quarter, according to the Productivity Commission. The government's productivity package is expected to lift economic activity by $13bn, but the commission did not assess the impact of its tax and workplace policies.

The players

Andrew Leigh

Assistant Productivity Minister in the Australian government, who defended the exclusion of tax and workplace relations policies from the inquiry.

Productivity Commission

Australia's independent federal research and advisory body, which conducted the inquiry and reported the fall in labour productivity.

The details

The inquiry's stated focus includes business dynamism, management quality and the adoption of AI, and it recommended cutting regulatory complexity and improving access to government guidance. Mr Leigh also blamed the Iran war for fuelling global inflation.

Year to the June quarter: labour productivity fell 0.2 per cent.
Upcoming budget: expected to include further savings.

Policy Context

The inquiry's narrow terms of reference mean its findings do not cover the government's own tax and workplace relations changes. Business groups argue this leaves major productivity levers outside the review.

Businesses and workers face uncertainty about how tax and workplace changes will affect productivity until the policies take effect. The upcoming budget is expected to include further savings that could affect household and business finances.

The takeaway

Productivity reviews that exclude key policies may leave the biggest drivers of business performance unexamined. Readers should watch the upcoming budget for how the government plans to address productivity.