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1370.0 - Measures of Australia's Progress, 2010  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 15/09/2010   
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Productivity is an important source of output growth, and contributes to growth in national income. During a period of productivity growth, it is possible to raise real wages and other incomes without increasing inflationary pressures. Also, industries that experience higher rates of productivity growth can enhance their competitiveness.

Education is important as it both disseminates existing knowledge among the Australian population and enhances the probability that Australians will generate or adopt new technologies and other innovations.

Knowledge and innovation can contribute to Australia's productivity growth (and hence to improvements in national income and competitiveness) because they enhance the prospects of technological advances and of improvements to management and work practices and other aspects of economic production. Knowledge and innovation can also result in improved approaches to satisfying the needs of Australians (for example, through better health services) and to protecting Australia's environmental resources.

Natural assets (such as soil, minerals, water and timber) are used in production. If Australian industry can use such assets more efficiently, economic growth will, for a given volume of output, require less draw-down of these resources and so have a smaller impact on the environment.

Unmitigated climate change would have a negative impact on productivity growth. If left unabated, it is estimated that agricultural productivity could decline in Australia by as much as 17% by 2050 as a direct result of climate change (Treasury 2010).


  • National income
  • Education and training
  • Competitiveness and openness
  • Work
  • Household economic wellbeing
  • Inflation
  • Atmosphere
  • Health

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