The Western Australian Government has announced plans to establish a WA Productivity Commission in 2026, merging the functions of Infrastructure WA (IWA) and the Economic Regulation Authority (ERA).
The new body is being pitched as a centre of excellence to boost jobs, streamline approvals, and strengthen WA’s position as the nation’s strongest economy. For builders, developers, and suppliers, the Commission could mark a turning point in how infrastructure, regulation, and productivity are managed in the state.
Why It Matters for Construction
Premier Roger Cook has made clear that productivity is not just an abstract measure, it’s about tackling real-world bottlenecks. At a June Economic Resilience Roundtable with industry stakeholders, top issues included:
- Energy pricing and the cost burden on projects
- Common user infrastructure to lower barriers for industry
- Timely regulatory approvals that can shave months off project timelines
- Workforce planning to ease skills shortages
By consolidating IWA’s long-term infrastructure planning with the ERA’s regulatory expertise, the Commission will be tasked with directly addressing these productivity drivers.
For the construction sector, the message is clear: the WA Government wants approvals faster, services more efficient, and infrastructure delivered with greater value.
Industry Alignment with Other States
Western Australia is following the lead of other jurisdictions. New South Wales and South Australia set up productivity commissions in 2018, while Queensland reinstated its commission in 2024.
In WA, legislation will be introduced in the first half of 2026 to formalise the Commission’s objectives and governance. Once established, it will provide continuous advice on how to lift productivity across both public and private sectors including construction.
Government Perspective
Premier Roger Cook said the Commission is part of his vision to make WA a global leader in investment attraction, industry facilitation, and regulation.
“By being the best place in the world to do business, we will maintain Western Australia as the strongest economy in the nation and the best place in the world to get a quality job,” Mr Cook said.
Treasurer Rita Saffioti reinforced the focus on value and efficiency:
“This is about streamlining approvals and ensuring we get the best value for every dollar spent, while still delivering the major economic infrastructure and essential services our communities rely on.”
Potential Benefits for Builders
If delivered effectively, the WA Productivity Commission could:
- Accelerate project approvals – reducing uncertainty for builders and developers.
- Create clearer pathways for infrastructure investment – improving visibility on government priorities.
- Enhance public sector service delivery – especially in housing and health, sectors where construction capacity is critical.
- Strengthen workforce planning – potentially shaping future training and skills programs aligned with demand.
The TGB Take
For builders, this reform could mean less red tape, faster approvals, and more certainty on major projects. But much will depend on how the new Commission balances independence with government priorities.
The construction industry should be watching closely as consultation begins. With input from industry peak bodies, unions, and builders themselves, this is a chance to ensure the Commission’s remit genuinely tackles the barriers that slow down building activity in WA.
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