A bold prescription for Australia’s economic revival
A new public policy think tank, Policy Institute Australia (PIA), argues that the time has come for the Department of Treasury in Canberra to assume a more assertive, strategic role in steering the nation’s economic future. In its latest policy brief, PIA outlines a plan to fund, coordinate, and accelerate a national program designed to reinvigorate growth, boost productivity, and improve competition across sectors that have historically been characterised by concentrated power and limited consumer choice.
Why Treasury should lead the effort
The authors contend that a centralized, policy-driven approach is necessary to unlock Australia’s potential after years of uneven growth and persistent productivity gaps. They propose strengthening Treasury’s mandate beyond traditional fiscal management to include macroeconomic coordination, industrial strategy, and robust competition policy. By positioning Treasury at the helm, the think tank argues, Australia can align budgeting with long-term structural reforms, ensuring every dollar spent advances clear national objectives.
Target areas for reform
PIA highlights several core areas where reform could deliver meaningful gains. First, it calls for a renewed, evidence-based competition policy aimed at reducing barriers created by oligopolies and market dominance in key sectors. Second, the think tank favours targeted investments in infrastructure, energy, and digital capabilities to raise total factor productivity and create a more dynamic economy. Third, it recommends upskilling the workforce and supporting research and development to translate innovation into widespread, scalable productivity improvements.
In its proposal, the group also stresses the importance of a transparent implementation framework. This would include clear milestones, performance metrics, and independent oversight to ensure the national program stays on track and delivers value for taxpayers.
Balancing ambition with fiscal responsibility
While pushing a stronger Treasury role, the policy brief acknowledges the need for prudent fiscal management. It suggests financing the program through a combination of re-prioritised existing programs, targeted leverage on high-return projects, and well-structured public-private partnerships. The overarching aim is to mobilise private capital for public benefit while maintaining debt sustainability and protecting vulnerable households during the transition.
Political and market reception
Observers note that this approach would require substantial cross-party support and buy-in from business, unions, and civil society. Proponents argue that a clearly communicated plan with measurable outcomes could restore confidence among investors and workers alike. Critics, however, may worry about government overreach or market distortions. The debate, as framed by PIA, centers on finding the right balance between strategic intervention and free-market dynamics.
What happens next?
If the idea gains momentum, policymakers would face questions about governance, funding pathways, and the sequencing of reforms. The think tank recommends establishing a dedicated cabinet committee, annual budgetary allocations aligned with strategic goals, and ongoing public reporting to maintain accountability. As Australia navigates global economic shifts, PIA’s proposal adds a provocative, practical framework for turning aspiration into action.
Bottom line
PIA’s call for Treasury to lead a national program reflects a broader desire to rethink how Australia competes, innovates, and sustains growth. Whether ministers embrace the plan will depend on the perceived feasibility of reforms, the strength of supporting evidence, and the ability to secure broad-based support for a more proactive, Treasury-driven approach to economic policy.
