“The Productivity Commission is a key driver of Australia’s productivity performance,” Universities Australia Chief Executive Catriona Jackson said.

“We support the Treasurer’s focus on ensuring the Productivity Commission is set up to deliver on its mission of lifting productivity in a rapidly evolving economic environment.

“Australia’s universities have long worked closely with the Productivity Commission, reflecting our central role in spurring productivity and economic growth in partnership with government.

“Universities are already playing a major role in helping Australia respond to the major forces impacting our economy – from digital transformation and the energy transition to an ageing population and geopolitical risks.

“We do this by educating the skilled workers and undertaking the research and development needed to rise to these challenges and opportunities.

“With productivity flatlining, we need to be doing everything we can to lift Australia’s productivity and move towards a more modern and faster growing economy.

“Lifting investment in higher education research and development by just one per cent would raise productivity and increase the size of Australia’s economy by $24 billion over 10 years.

“This would help underpin a higher standard of living for all Australians.

“Universities look forward to continuing to work closely with the Productivity Commission and government to help Australia overcome the economic challenges we are facing.”