Introduction: A call for decisive Treasury-led reform
A fresh policy voice is urging Canberra to reimagine how Australia’s economy grows. The Policy Institute Australia (PIA) argues that the Department of the Treasury should assume a more proactive role in steering a national program aimed at rebuilding productivity, competition, and resilience. The proposal centers on using the Treasury as a catalyst to address the structural dominance of a few large players in key sectors, which critics say suppresses competition, innovation, and living standards.
Why oligopolies matter for Australia’s growth
Oligopolies—markets dominated by a small number of firms—are a focal point of the PIA’s argument. In sectors such as telecommunications, energy, retail, and some professional services, concentration can limit price competition, slow innovation, and raise barriers for new entrants. The think tank contends that without targeted policy action, Australia risks slower productivity growth, higher business costs, and reduced consumer choice over the long term.
Economic rationale
Expansive share of market power can hinder efficient investment and dampen the gains from global economic shifts. By giving Treasury a more central role, Australia could design and fund programs that encourage entry for new firms, support competitive procurement practices, and modernize regulation to reduce red tape that disproportionately affects smaller players. In turn, stronger competition can translate into better prices, improved services, and more dynamic job creation.
A Treasury-led national program: What it could look like
The PIA’s proposal envisions a coordinated, multi-year plan that sits at the heart of Australia’s macroeconomic strategy. Key components would include:
- Competition and incentives reform: targeted measures to reduce barriers for new entrants and to curb anti-competitive practices in sensitive sectors.
- Public procurement reforms: preferences and procurement rules designed to diversify suppliers and foster innovation, while ensuring value for taxpayers.
- Industry and regional development: programs that support regional growth and diversification away from single-industry dependence.
- Productivity and skills: investments in technology adoption, workforce upskilling, and research collaboration.
- Regulatory simplification: a rolling review of rules affecting small and medium enterprises to reduce unnecessary compliance costs.
Crucially, the think tank argues that these initiatives would be funded and guided by a central Treasury-led framework, with independent oversight to ensure transparency and effectiveness. This approach, the authors say, would align fiscal policy with structural reforms that have long been promised but rarely executed at scale.
Financial discipline and accountability
Any major expansion of Treasury’s remit must be paired with robust governance. The PIA calls for:
- Clear objectives and milestones: measurable targets for competition, productivity, and wage growth.
- Sunset clauses and periodic reviews: built-in evaluation points to assess impact and reallocate resources if necessary.
- Independence with accountability: expert advisory bodies and parliamentary scrutiny to balance policy ambition with spending discipline.
What this means for Australia’s economy and voters
<pSupporters say a Treasury-centric reform agenda could unlock higher living standards by boosting competition and productivity. Critics, however, warn of potential risks, including excessive state intervention in markets or misalignment with industry dynamics. The debate highlights a broader question: how not just to grow the economy, but to grow it in a way that broadens opportunity, reduces prices, and strengthens resilience against future shocks.
Next steps
Whether policymakers embrace this vision remains to be seen. The PIA’s proposal invites a national conversation about the role of Treasury, the design of competition policies, and the careful balance between regulation, innovation, and fiscal prudence. For now, the message is clear: to reboot Australia’s growth trajectory, a more assertive, Treasury-led program may be the reform lever voters and businesses are seeking.
