New research reveals a solution for Australia’s productivity slump

Australia’s GDP could be boosted by up to $50 billion a year if supply chain data standards were improved, according to a new report.

A new research report from the Centre for International Economics and commissioned by GS1 Australia, the body responsible for the common retail barcode, reveals that industry use of supply chain data standards is quietly driving a significant share of Australia’s economic output, contributing up to $27.3 billion annually to Gross Domestic Product (GDP), and could play an increasingly important role in reversing the nation’s lagging productivity.
 
The report also found that expanding the use of GS1 data standards could unlock as much as $50 billion in annual GDP within the next decade which is equivalent to $1,838 per person every year. These standards, best recognised as barcodes, are embedded in the everyday operations of industries such as retail, healthcare, logistics and food production.
 
‘This research shows the humble barcode is not just important for retail. It is part of an invisible infrastructure linking every point in the supply chain. GS1 data standards help identify, capture, and share data, making sure the right information reaches the right people at the right time,’ said Maria Palazzolo, CEO of GS1 Australia.
 
‘These guiding standards should not be overlooked; they should be seen as an asset that boosts national productivity and cross-organisation communication. However, supply chain standards, including barcodes, only work when businesses and their partners are working together, and with strong government leadership.’
The research also highlights the broader economic benefits of GS1 standards. Their current use is helping to permanently reduce consumer prices by up to 0.6%, offering a meaningful buffer against inflation. At the same time, they are contributing an estimated $3.5 billion to $5.2 billion in annual tax revenue. With broader adoption, these figures could rise significantly, with prices permanently 0.9% lower, and tax revenue increasing by as much as $9.5 billion annually within a decade. 

‘Broader adoption of GS1 standards means lower prices for consumers through cost savings all along the supply chain. That is how you lift productivity, not just in one business but across the entire economy,’ said Mrs. Palazzolo.

‘If Australia does not actively promote GS1 standards, our supply chains will remain fragmented. Productivity is about working smarter, and that starts with systems that can talk to each other. If we want to stay competitive and grow, we need to treat data standards as national infrastructure.’

The report was launched to coincide with World Barcodes Day, which marks the anniversary of the first barcode scan on June 26, 1974.