A key advisory body has been told to sharpen its focus on areas including climate change and an ageing population to boost Australia's productivity.
Technological transformation, geopolitical risks and the delivery of quality care are other priorities identified in the federal government's statement of expectations for the Productivity Commission.
Treasurer Jim Chalmers has outlined reforms to assist the organisation which delivers advice on economic, social and environmental policy issues.
The statement lays out the government's expectation for the commission to diversify its data capability and improve its communication and engagement with stakeholders.
There will be an expectation that the commission complements government policies with effective recommendations on how to translate them into practice.
States and territories will be given a bigger say in the advice handed to their federal counterparts, with the commission expected to consult when advising on issues that overlap with those jurisdictions.
Industry and non-government organisations will also have their ideas heard in order to deliver reforms that will boost working conditions for people, businesses and communities.
Incoming chair Danielle Wood will be tasked with leading the commission's transformation.
"The statement of expectations outlines a vision to ensure the Productivity Commission is relevant and impactful for years to come," she said.
The statement is the result of a nine-month consultation with stakeholders, economists and other experts.