The Productivity Commission warns Australia's high living standards may not appear under threat from a collapse in productivity, but the nation shouldn't wait for a crisis before it acts.
In a discussion paper as part of its review aimed at increasing Australia's future prosperity, the commission says a decade of commodity price growth and recent house price inflation have combined to make Australians feel wealthier, even if the reality of low wage growth and falling investment suggests a weak income outlook.
"If we were waiting for a crisis to indicate that government should act, there is none - just an inexorable slowing towards reduced opportunity, greater dispute over shares of a smaller-than-expected pie and selective protection," it said on Monday, while calling for submissions by early December.
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