Sport Lessons: Boosting Productivity and Fair Play

Australian Treasury

Australia is a nation obsessed with performance. We admire grit, teamwork and ingenuity on the field, and we take pride in our reputation for punching above our weight in international sport. From the pool to the pitch, our athletes regularly outperform much bigger nations. Not because we're richer, but because we've built systems that work: talent is spotted early, coaching is world‑class, infrastructure is prioritised, and everything is measured. What gets measured gets improved.

But while our athletes keep breaking records, productivity has been limping. When our government came to office, labour productivity - the engine of long‑term prosperity - had suffered its worst drop in nearly half a century. The 2010s were the slowest decade for productivity growth since the war. Australians are switching jobs and starting businesses less often. In too many markets, incumbents dominate. If these markets were sporting leagues, they would have one team, one trophy and one very bored mascot.

This matters. A sluggish economy means fewer chances for the aspiring entrepreneur, fewer pathways for the ambitious worker and a lower ceiling on our collective ambition. We would never accept a sporting competition in which the results bore no relationship to effort, where newcomers could never crack the starting lineup or where legacy players always won regardless of merit. Yet that is exactly what is happening in parts of our economy. The lesson from sport is clear: if you want fair play and high performance, you need the right systems.

Sport teaches us that potential only becomes performance when talent is nurtured. Megan Still had never sat in a rowing boat until the Australian Institute of Sport tested her in 1988. She was so strong she tipped the scull each time she pulled the oars. The coaches took notice, and 8 years later she won Olympic gold. Evonne Goolagong Cawley, watching tennis from behind the fence in Barellan, was invited in for a hit: a gesture that launched a career at the top of world tennis.

Cathy Freeman's speed was matched by the scholarships and training that allowed her to develop it. None of them would have reached those heights without systems that identified and supported their ability. The same principle applies in the economy. The next champion might not be holding an oar or a racquet. She might be writing code or sketching a business plan. Our challenge is to make sure she gets the chance to succeed.

Rules matter too. Before football had a common rulebook, different English schools played their own different versions. It worked within the gates, but made organised competition impossible. Once rules were codified, the modern game was born. In the economy, competition policy plays the same role. It ensures no firm can buy the umpire and no incumbent wins simply because they are the biggest. That's why our government has modernised merger laws and revitalised National Competition Policy. When markets aren't competitive, innovation slows, workers have fewer options and inequality grows. Just as no one wants to watch a match where the outcome is a foregone conclusion, we shouldn't tolerate an economy in which a handful of giants dominate while newcomers are locked out.

Another lesson from sport is the value of relentless measurement. Athletes analyse heart rates, sleep cycles and GPS traces. Marginal gains add up. In some events, first and second place are separated by less than a second, so knowing what works is vital. The same culture of curiosity and testing is essential in public policy. Our government has established the Australian Centre for Evaluation to build the capacity to test programs rigorously and learn from results.

And then there is inclusion. For too long, women's sport was treated as a sideshow. Paying players properly and investing in visibility has lifted standards and grown crowds. The Matildas and AFLW have shown what happens when barriers fall: talent shines, participation rises and the whole system benefits. The same is true in the economy. When women, migrants, First Nations Australians and people with disability face systemic barriers, we all lose. Productivity suffers when talent is sidelined.

That's why we've strengthened gender pay gap reporting, expanded childcare access, and invested in programs that open doors to those who have too often been excluded. Fair play doesn't mean equal outcomes, but it does mean equal respect and real opportunity. A system that benches part of its talent will always underperform.

Australians admire sport not just for the victories, but for the values it embodies: grit, fairness, discipline and teamwork. Sport shows us that fairness and excellence are not opposites - they reinforce one another. In the best competitions, champions must keep proving themselves and outsiders always have a shot. That is what keeps systems vibrant and forward‑looking.

The lesson from the field, the pool and the track is simple: clear goals matter, good systems matter and fair play brings out our best.

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