5 Pillars Productivity Inquiries

Australia’s productivity growth has halved over the last two decades - the average annual productivity growth rate has fallen from 1.8% in 2003-04 to just 0.9% in 2022-23 (Australian Bureau of Statistics 2023). Given that high productivity is associated with higher wages, lower prices and stronger economic growth (Reserve Bank of Australia n.d.), the decline in productivity over the last two decades poses a clear risk to Australia’s future economic prosperity. Technology and innovation are core drivers of productivity growth, with widespread adoption of new technologies and techniques leading to improved efficiency and higher growth. Australia’s comparative advantages, including sovereign datasets and abundant clean energy, can be leveraged to enhance productivity growth across the economy.

ATSE’s submission responds to three of the five consultation opportunities below: 

1. Building a skilled and adaptable workforce: ATSE’s submission argues that high quality, specialised resources are needed to support teachers to improve their capacity. It also argues for greater support for students currently left behind by the education systems, including regional students and neurodiverse students. ATSE also highlights the need for greater integration between vocational education and the university sector to better support upskilling and reskilling. 
2. Harnessing data and digital technology: ATSE argues that the development of AI in Australia will help boost productivity and that a domestic AI industry is needed to ensure growth while managing ethical concerns. Data sovereignty is needed, with AI systems trained on Australian data, to ensure that these systems work in Australian contexts. This would need to include investments in shared data infrastructure and national coordination to standardise metadata. 
3. Investing in cheaper, cleaner energy and the net zero transformation: The submission notes the importance of policy certainty and long-term bipartisan buy-in for energy policy. It advocates for the speeding up of energy project approvals and better support to educate the community about the benefits of projects. ATSE also argues for measures to improve the efficiency of the energy system, including demand side management, energy storage technologies and societal changes. 

Recommendations from ATSE’s submission:

Recommendation 1: Establish an evidence-based, high-quality, and centralised directory of STEM learning resources accessible to teachers, learners, and organisations.  

Recommendation 2: Increase equity by better supporting regional schools and improving training and support for teachers to achieve the best possible outcomes for students, including neurodiverse students.  

Recommendation 3: Support greater integration between universities and vocational education for a system responsive to workforce needs. 

Recommendation 4: Invest in increasing Australia’s sovereign AI capability, including through infrastructure and skilled workforce development.  

Recommendation 5: Encourage domestic AI technology development and collaboration through government procurement processes.  

Recommendation 6: Develop coordinated national infrastructure for storing Australian datasets.  

Recommendation 7: Embed data governance and sovereignty principles in the management and application of nationally significant datasets.  

Recommendation 8: Expand digital access and literacy for regional, rural and remote Australia.  

Recommendation 9: Reduce perceived investment risks through a clear, long-term vision for Australia’s clean energy future.  

Recommendation 10: Accelerate new energy projects through streamlined approvals processes, while engaging with communities to develop social licence.  

Recommendation 11: Increase adoption of technologies and policies that allow for energy supply and demand to be better managed, improving energy system efficiency.