The Queensland government will examine the state's justice system in a bid to reduce soaring reoffending and imprisonment rates.
The inquiry follows a 52 per cent increase in the rate of imprisonment over the past five years, around five times the population growth for the same period.
"More than half of prisoners re-offend and are given a new sentence within two years of release," Queensland Productivity Commission principal commissioner Kim Wood said.
Incarceration cost Queensland taxpayers more than $950 million last year - $107,000 for each prisoner.
In the past two decades, the state's crime rate has fallen by almost a third while the imprisonment rate has soared.
The government has tasked the commission with finding out how resources and policies can be better used to lower Queensland's imprisonment and recidivism rates.
Investigators will analyse the benefits and costs of imprisonment, along with options to reduce reoffending and imprisonment rates.
Imprisonment trends and causes, including those for young people, women and Aboriginal and Torres Strait Islander people, will also be examined.
The commission will also look at international programs aimed at reducing imprisonment rates through early intervention.
Deputy Premier Jackie Trad said the ultimate aim of the commission was improving community safety.
The commission to report back in 2019 after consulting with experts, government agencies and other key stakeholders.