The Australian government is set to introduce a substantial $900 million National Competition Policy fund aimed at reducing red tape and lowering prices for both consumers and businesses.

This initiative will be part of a broader National Productivity Fund designed to enhance competition and stimulate economic activity across the country.

Federal Treasurer Jim Chalmers will highlight in his upcoming speech that productivity growth in Australia has plummeted to its lowest level in 60 years, particularly following the pandemic.

Chalmers asserts that fostering enhanced competition is crucial for creating a more productive economy, which in turn offers better job opportunities, greater choices, and fairer prices for consumers.

Key areas targeted for reform include streamlining commercial planning and zoning processes to expedite construction, as well as removing barriers to modern construction methods like modular housing.

The initiative is structured to reward states that successfully implement effective economic reforms with increased revenue.

Chalmers will announce this initiative on November 13, 2024, during a speech to the Australian Business Economists in Sydney, emphasizing that households could save around $5,000 annually if the plan is successful.

A report from the Productivity Commission estimates that these proposed reforms could potentially boost Australia's GDP by $45 billion annually and reduce prices by nearly 1.5 percentage points.

Additionally, a new 'right-to-repair' rule is being introduced to address consumer concerns about high repair costs, particularly in the automotive sector, by promoting competition in repair services.

The government also plans to fast-track product safety legislation, which could save businesses up to $5 billion over the next decade by easing the importation of compliant products without requiring additional testing.

Reserve Bank governor Michele Bullock has criticized the slow pace of productivity growth in Australia, linking it to stagnating living standards and wage growth.

Chalmers emphasizes that increasing competition remains a key priority, with ongoing reforms to the National Competition Policy that were initiated earlier in November 2024.