Economics

Wood Urges Government to Adopt ‘Growth Mindset’ Reforms

The Productivity Commission urges the federal government to take on a reform agenda to address productivity during this week’s economic roundtable, despite objections from industry.

Published

8 months ago

August 19, 2025

Dominic Wexler

The Productivity Commission is encouraging the federal government to adopt a “growth mindset” in upcoming economic reforms, to assuage concerns about future generations.

As part of the new approach, Danielle Wood, Chair of the Productivity Commission, has recommended that politicians embrace a new reform program to assuage fears that young people “won’t live better lives than their parents”, although some of the Commission’s proposals have been met with blowback.

In the lead up to an economic reform roundtable, the Productivity Commission is raising proposals to solve flagging productivity. (Source: Pixabay)

“Productivity reform 2020s style is less about a single iconic reform and more about making improvements all over.” (Danielle Wood)

Ms Wood blamed recent governments for poor policy decisions disproportionately affecting the lives of younger Australians. She has advised the government to implement reforms that will raise the country’s flagging productivity. This includes better skills training and improved access to education, enabling workers to switch jobs more easily, or start and run their own business.

The Productivity Commission has also raised the problem of regulation creep. Excessive red tape and compliance testing are believed to be reducing business efficiency and slowing residential construction. With house prices rising faster than incomes, and the looming implications of climate change, the Commission has been setting out proposals for the government to review so as to counter the current economic crisis.

However, some of the Commission’s suggestions have been criticised.

Its proposal that would allow technology companies to train their AI models on Australian copyrighted content—including music, literature, and art—was met with hostility by industry professionals. Despite the potential $116 billion boost to the Australian economy over the next decade, Lucy Hayward, CEO of the Australian Society of Authors (ASA), described the idea as “an entirely absurd proposition”.

“Why should we create a situation where billion dollar tech companies can profit off authors’ work, but not the creators who made the work?” (ABC News, 2025)

Screenshot 2025 08 19 130159 — *The Australian Society of Authors (ASA) is objecting to policies that favour tech companies over creators. (Source: Pixabay)*

Debates over productivity will take place this week, with the federal government hosting a 3-day economic reform roundtable at Parliament House from the 19^th to the 21^st of August. The roundtable will consult submissions from experts and industry leaders, in addition to forums that Ministers around Australia have held. It will bring together leaders from the business community, the union movement, and civil society. Ms Wood is set to hold one of the seats.

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