Red-tape barriers cost us $176bn a year

Red-tape barriers cost us $176bn a year, by Mikayla Novak at the IPA.

These costs typically come in the form of paperwork, labour retraining and other compliance burdens, the costs of delaying production, and the diversion away from more entrepreneurial and innovative activities.

The Commonwealth government … has estimated the annual compliance costs of its red tape to be in the order of $65 billion per annum. … the costs presented by the government are likely to be understated by a wide margin … because the costs of red tape compliance and management not only exerts direct costs upon individuals and businesses, but also has an adverse impact on broader economic activity.

Based on international econometric studies of red tape costs it is estimated the economic costs of red tape in Australia is at least in the order of $176 billion per annum (11 per cent of GDP)… [or] about $19,300 per Australian household.