States and territories will be offered up to $900 million to streamline building approvals and enact other pro-productivity reforms, under an incentive fund to be established by federal Treasurer Jim Chalmers.

As Australia’s labour productivity languishes at 2016 levels, Dr Chalmers said a new Productivity Commission report, yet to be publicly released, showed “substantial, if not staggering” benefits from a revitalised national competition policy agenda with the states.