Sexism, harassment and bullying have been exposed inside a powerful federal agency, triggering a major overhaul.
The Productivity Commission will undergo significant reforms after an independent investigation found serious problems among staff.
Treasury commissioned the inquiry after receiving a complaint about workplace culture at the economic advisory body.
The review found a small number of Productivity Commission staff engaged in sexism, harassment, bullying and discrimination.
A lack of diversity, power imbalances and poor accountability were identified as driving factors behind inappropriate behaviour at the organisation.
"Any allegations like bullying and sexual harassment, management just want it to go away, and the way they make it go away is by ignoring it," one respondent told investigators.
Another participant reported being subjected to repeated sexism, belittling, humiliation, and verbal abuse.
The review identified a small group of men "set and dominated the culture within the Canberra office", where inappropriate behaviour was most prevalent.
It heard women from the Melbourne office were warned to watch out for predatory behaviour by certain individuals at the Canberra office when travelling there for work.
"The accumulation of inappropriate workplace behaviour incidents over a number of years has escalated and resulted in a workplace culture that was psychologically unsafe for a number of staff, particularly women and those from minority groups," the report found.
A number of culturally diverse women described their experience as being "unseen and unheard".
In several instances, people with disability were not afforded reasonable adjustments to enable them to carry out their work, as required by law.
"Everyone has the right to a safe and respectful workplace," Treasurer Jim Chalmers said on Friday.
"I thank current and former staff for participating in the review."
The review primarily focused on events prior to 2022 and Dr Chalmers said employees who behaved inappropriately were no longer with the agency.
The report found the Productivity Commission's policies and processes had improved in recent years.
"But more needs to be done," the treasurer said.
The review made 23 recommendations focused on improving leadership, workplace culture and staff supports, better identifying risks and improving the handling of complaints.
The commission has agreed to implement all recommendations and provide a progress report after 12 months.
"The commission leadership has an opportunity to reset the culture to ensure that it is actively inclusive of people from minority groups, and that incidents of inappropriate behaviour are dealt with swiftly, effectively, and utilising best practice," the review said.
"This reset will require leadership commitment and ongoing efforts to rebuild trust in management practice and complaint mechanisms."
