The 1963 Industrial Arbitration Act brought about a complete restructuring of the arbitration system in Western Australia. The repeal of Sects. 44 - 60 in the principal Act saw the abolition of the Court of Arbitration and the establishment of the Industrial Commission. The Commission consisted of a Chief Industrial Commissioner and three other Commissioners and had the power to inquire into any industrial matter or dispute within its jurisdiction and to make orders or awards in respect of these matters or disputes.

Previously the Western Australian Industrial Commission, the change of title reflects the Government's policy to emphasise industrial relations rather than arbitration. The Commission has authority to enquire into any industrial matter and to make an award, order or declaration in respect of the dispute.