News
2 December, 2024
Queensland Productivity Commission to review construction costs
The Crisafulli Government has introduced legislation to establish the Queensland Productivity Commission, which will investigate economic challenges and provide policy recommendations.
The Crisafulli Government has introduced legislation to establish the Queensland Productivity Commission, which will investigate economic challenges and provide policy recommendations.
The commission’s first task will be a review of the state’s construction sector, following reports that Best Practice Industry Conditions (BPIC) have increased the cost of major projects by up to 30 per cent. Treasury modelling has also indicated that productivity losses account for the majority of cost increases.
The former Productivity Commission was abolished in 2021, leaving Queensland without an independent body to assess economic efficiency. The government says its re-establishment will help address cost-of-living pressures and improve economic management.
Queensland Treasurer David Janetzki said the commission’s role is to identify opportunities to strengthen the state’s economy.
“Productivity underwrites prosperity, and we must return it to Queensland to drive down costs across industry and around the kitchen table,” he said.
“If we don’t reverse the productivity purge, businesses and families will pay the price.”
The government has paused BPIC while the commission conducts its review, with a report expected by mid-2025.
The commission will also produce Queensland’s first Intergenerational Equity Report, examining long-term economic challenges and policy solutions.
