Australia launches Productivity Commission review of Closing the Gap

The Australian Government has released the Terms of Reference for the second Productivity Commission review of the National Agreement on Closing the Gap. The review aims to assess the effectiveness, outcomes, and impact of measures taken by federal, state, territory, and local governments, as well as the Coalition of Peaks, to meet established targets for Aboriginal and Torres Strait Islander people.

A significant component of the review will be an explicit examination of funding and investment practices. The Productivity Commission is tasked with investigating whether government expenditure and resourcing for the community-controlled sector align with the National Agreement’s Priority Reforms. These reforms are designed to enhance community-controlled services and increase First Nations involvement in decision-making processes.

Treasurer Jim Chalmers noted that improving the lives and prospects of First Nations people is a key focus for economic portfolios. Minister for Indigenous Australians Senator Malarndirri McCarthy emphasized the government's commitment to working in partnership with the Coalition of Peaks and various levels of government to build upon existing progress.