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Productivity Commission inquiry into barriers to business entries and exits



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THE HON. J.B. HOCKEY MP Treasurer

THE HON. BRUCE BILLSON MP Minister for Small Business

Wednesday, 19 November 2014

Productivity Commission Inquiry Into Barriers To Business Entries And Exits

The Treasurer, Joe Hockey, and the Minister for Small Business, Bruce Billson, are pleased to announce a Productivity Commission inquiry into barriers to business entries and exits.

Mr Hockey released the Terms of Reference for the review today.

Mr Hockey said this review would identify ways to improve Australia’s productivity performance by encouraging entrepreneurship, innovation and increased efficiency in Australian businesses.

This review is about increasing competition, improving Australia’s productivity and building a more flexible and resilient economy.

Business entry and exit provides a mechanism to drive improvements in efficiency and productivity.

Minister for Small Business, Bruce Billson, said the inquiry is vital to improving Australian living standards by giving small businesses every opportunity to build upon their role as the engine-room of the Australian economy.

The Abbott Government is committed to unleashing Australia’s entrepreneurial endeavour because the nation suffers for every great idea that isn’t turned into an exciting new business venture. Small business often pioneers new technologies or work practices before they spread more broadly through an industry and we need to take advantage of that fact, Mr Billson said.

The ability to start new businesses is not just important for the great new products and services that entrepreneurs will bring to the market, it is also a way to innovate and improve existing competitors. This is one of the key ways in which the Australian economy becomes more efficient and it is therefore crucial to improving our long-term productivity concerns.

The Productivity Commission is due to report back to the Government by mid-August next year. The recommendations will be considered in the context of the Government’s ongoing competitiveness agenda.

Public consultation will be undertaken as part of the inquiry, with information available at

www.pc.gov.au/projects/inquiry/business

The Terms of Reference for the inquiry are attached.