“The productive sectors of our economy are getting absolutely smashed by an avalanche of red tape and bureaucracy which is making it almost impossible to expand, invest, and get ahead,” said Saxon Davidson, Research Fellow at the Institute of Public Affairs.
New research released by the IPA today uncovers the rapid growth in the number of federal government employees involved in the creation and enforcement of rules and regulations. The research shows:
- By the end of the 2027 financial year, the total number of staff employed by the federal government in regulatory roles will be more than 110,000.
- This represents an overall increase of more than 19,000, or 21 per cent, from the 2023 financial year.
- The cost to taxpayers to employ red tape enforcers alone will be approximately $16 billion by the end of the 2027 financial year.
- This is an increase of $527 million from the 2026 financial year and an increase of $4.2 billion, or 34 per cent, from the 2023 financial year.
- The Climate Change, Energy, the Environment and Water portfolio is projected to have the greatest growth between the 2026 and 2027 financial years (+14.6 per cent) and is set to have 107 per cent growth from 2023.
“At the very time as living standards are going backwards at the fastest rate since the 1970s, the federal government has unleashed its massive red tape army onto the economy which is demolishing productivity,” said Mr Davidson.
“Every minute individuals and businesses spend filling out endless red tape requirements is a minute they are not able to dedicate to growing their businesses. These costs are passed on to Australians through higher prices and fewer employment opportunities.”
“With more than half the total federal government workforce engaged in regulatory activity, the potential of Australia is being diminished as Australians are faced with the unnecessary cost and delays of paperwork over getting on with the job.”
Previous IPA research shows red tape has soared in Australia to record levels, with red tape at the federal level having increased by 88 per cent between 2005 and 2023. In fact, red tape has grown at a rate two-thirds greater than the overall growth in the national economy in the same period.
“The Albanese government is defined by two things: Big Government through more bureaucrats and Big Australia through record migrant numbers, both of which are crushing mainstream Australians,” said Mr Davidson.
“Rolling back the massive expansion of the bureaucracy is critical to boosting investment and securing a thriving private sector that improves living standards at the individual level.”
Click here to read the research
