PC calls on government to 'redouble' efforts to close the gap

The Productivity Commission's (PC) 2026 Annual Data Compilation Report (ADCR), which tracks Australia's performance towards the targets and indicators in the National Agreement on Closing the Gap, shows that of the 19 targets, one has been met, three are on track to be met, five are improving but are not on track to be met and four are worsening.

"The deadline for meeting most of the targets is 2031 so we are already past the halfway point. Governments will need to redouble their efforts for the promise of the National Agreement on Closing the Gap to become a reality," PC commissioner Selwyn Button said.

"The Agreement makes it clear that the best way to make progress is through governments acting on the four priority reforms: sharing decision making, building the community controlled-sector, transforming government organisations and sharing access to local data.

"Where governments have started sharing power with communities, progress has followed."

The ADCR incorporates the latest data from the Closing the Gap Dashboard, which the PC said has also been updated. The 2026 ADCR includes new data for nine socio-economic targets and 34 supporting indicators, with a further 12 supporting indicators reported for the first time.

Of the nine targets with a new year of data, the assessment of progress has changed for two: preschool enrolment has gone from 'improving and on track' to 'met' (as the target year for this indicator is 2025) and healthy birthweight has gone from 'improving but not on track' to 'no change from the baseline'.

"We can't look at any of the outcomes in isolation. For example, while the target for enrolment in preschools has been met, the target for children assessed as developmentally on track is worsening nationally, with uneven progress across places and groups," Button said.

"Programs that put communities in control of providing culturally safe early childhood education and care services, like the Connected Beginnings program, are showing the way forward."

The PC said for the first time the ADCR has been able to incorporate Aboriginal and Torres Strait Islander community-governed data.

"Communities gaining greater control of their data is a bedrock ambition of the Agreement. This is a meaningful step in the right direction," Button said.

The ADCR highlights that significant gaps remain in the data that's available to assess progress.

"We're now past the halfway point for all the targets in the Agreement and we still lack the data we need to fully evaluate progress," Button said.

"Governments are still developing ways to measure progress towards the four Priority Reforms which are at the heart of the Agreement.

"We will be looking at these issues and more in our second inquiry into the government's progress towards the Agreement, which we are due to commence this year."