Jim Chalmers announces Chris Barrett as the new Chair of the Productivity Commission

The opposition has promised to "extensively" scrutinise the appointment of former Labor staffer and current Deputy Secretary of the Economic Division in the Victorian Department of Treasury and Finance Chris Barrett to the five-year term.

Treasurer Jim Chalmers, who succeeded Mr Barrett at Mr Swan's chief of staff, announced the recommendation to the Governor-General on Monday.

Despite Mr Barrett's former Labor roles, Dr Chalmers said the economist was very well qualified for the role.

"His appointment comes after a rigorous merit-based process which involved interviews with two departmental secretaries and the Australian Public Service Commissioner as well," Dr Chalmers told reporters in Canberra.

"His experience, whether it's from key senior roles in important international institutions to practical experience delivering reforms in both state and federal governments, will be absolutely invaluable to our thinking, as we renew and refocus and revitalise the Productivity Commission for the future."

Dr Barrett's appointment is the second major recruitment to a key economic institution made by the government this month following the announcement that Philip Lowe will be replaced as head of the Reserve Bank of Australia by his deputy Michele Bullock.

The appointments are part of Dr Chalmers' agenda to drive change.

The government recently endorsed the recommendations of a far-reaching review of the central bank and the treasurer said Mr Barrett would oversee reforms to the commission following "months of consultation on the best ways to take the PC forward".

Treasury has been leading "quite a detailed and comprehensive consultation process", Dr Chalmers said.

"I'm certainly looking to revitalise and renew and refocus the Productivity Commission," the treasurer said.

"Clearly ... a more modern approach to data. Clearly, an approach which recognises the vast industrial and productivity opportunities of the energy transformation. Clearly, the way we think about human capital. All of these sorts of things will be central to the way that we recast the Productivity Commission.

"We see the PC as a really crucial institution as we try and get productivity growth going again in our economy as we try and reform and renew our institutions. Chris's appointment will be an important part of that effort."

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Shadow Treasurer Angus Taylor has described as Mr Barrett as a "friendly face" and Dr Chalmers' old boss.

Mr Taylor said it was "crucial" the Productivity Commission remained independent under the new leadership.

"The opposition was not consulted on this appointment and will scrutinise it extensively at Senate estimates," he said in a statement.

"The test of Mr Barrett's performance will be in whether he pursues genuine productivity reform or rubber stamps Labor's union-led agenda that business is warning will take productivity further backwards."

Dr Chalmers rejected suggestions Mr Barrett's appointment would politicise the PC or undermine its independence.

"My intention is to strengthen the Productivity Commission and its independence is an important part of that," he said.

"What we're talking about here is the appointment of someone who has been a highly regarded and very experienced public policy practitioner for three decades.

"When it comes to productivity, we have a range of priorities. It may be that the PC has other priorities under Chris's leadership, and that's fine as well. I want to strengthen the PC, not diminish it, and I see this appointment in that light."

Employers organisations the Australian Chamber of Commerce and Industry and the Ai Group welcomed Mr Barrett's appointment.

ACCI chief executive Andrew McKellar said the economist was a "strong choice" to lead the commission while Ai Group head Innes Willox praised Mr Barrett's "considerable experience".

Former Department of Prime Minister and Cabinet and Treasury head Martin Parkinson said Mr Barrett was an "outstanding appointment".

Mr Barrett, who was also Australia's Ambassador to the OECD and executive director of the European Climate Foundation, is due to take up the role in September.

Mr Barrett has a Master of Public Policy from Princeton University where he graduated first in his class, a Master of Arts from the University of Melbourne, and a Bachelor of Commerce from the University of Melbourne.

Dr Chalmers thanked outgoing chair Michael Brennan for the significant contribution he has made to the commission's work.

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