Free market think tank the Institute of Public Affairs welcomes the Morrison Government’s economic reform agenda to cut red tape, reform industrial relations, and reduce taxes.
Today the Prime Minister Scott Morrison outlined his government’s plan to reduce red tape, reform industrial relations, and reduce income taxes in a speech to the Western Australia Chamber of Commerce and Industry.
“The comments from Prime Minister Morrison and Treasurer Frydenberg on boosting productivity by cutting red tape and reforming industrial relations is an example of economic leadership and ambition that Australia needs,” said Daniel Wild, Director of Research with the free market think tank the Institute of Public Affairs.
“The Morrison government’s plan to cut red tape will boost business investment, increase wages, and remove bureaucratic constraints on Australians reaching their potential.”
“Red tape costs Australian businesses, families, and individuals $176 billion each year, which makes red tape Australia’s biggest industry. This cost represents all of the businesses which are never started, the jobs never created, and the dreams never fulfilled due to red tape.”
“Cutting red tape will boost business investment, which is currently just 11.8 per cent of GDP which is lower than it was during the anti-business Whitlam years.”
“The Trump Administration in the United States has slashed red tape, reduced taxes, and liberalised the domestic resources sector which has led to the lowest unemployment rate since the 1960s.”
“Cutting red tape will reduce the cost of living. The sectors with the fastest growing prices are those with the most government regulation, such as housing, education, and child care,” said Mr Wild.
To cut red tape the government should: implement a one-in-two-out approach where two regulations are removed for every new regulation introduced, abolish Section 487 of the Environment Protection and Biodiversity Conservation Act which allows green groups to launch frivolous and vexatious lawsuits against projects in the resources sector, and remove the need for government approval of major projects.
Research by the Institute of Public Affairs found that the use of Section 487 has resulted in major projects, such as the Adani Carmichael coal mine, being held up in legal proceedings brought on by green groups for 7,500 cumulative days, or 20 years.