Productivity Commission Peter Harris Chairman, Productivity Commission 29 May 2014

Productivity Commission2 Contributions to growth in average incomes – same LP growth as last ‘decade’ Note: 1.3 per cent labour productivity growth and no contribution from foreign income flows assumed to 2022 Source: ABS cat. no , unpublished ABS data, Treasury calculations and PC calculations Same growth as

Productivity Commission3 Contributions to growth in average incomes – needed for long run GNI growth Note: No contribution from foreign income flows assumed to Long-run GNI growth of 2.3 per cent a year. Source: ABS cat. no , unpublished ABS data, Treasury calculations and PC calculations. Needed to preserve long-run GNI per capita growth

Productivity Commission4 Productivity in different sectors to , index =100 Manufacturing Financial and insurance services Utilities Mining Source: ABS (Estimates of Industry Multifactor Productivity, , Dec 2013).

Productivity Commission5 Multifactor productivity growth in selected countries and regions Average annual growth rates, per cent Data source: The Conference Board Total Economy Database™, January 2014.

Productivity Commission6

7 Labour productivity and real wages: Australia and G20

Productivity Commission8 Ageing will reduce economy wide participation rates

Productivity Commission9 Current expenditures are weighted towards older Australians

Productivity Commission10 Mismatch between life expectancy and retirement policy People are living longer, but not increasing the time spent in the workforce

Productivity Commission11 Growth of the oldest old is set to soar