Stronger economic growth, greater investment, more innovation and higher productivity can be generated if Australia changes the way it addresses regulation.
All modern economies need regulation, but excessive regulation creates greater costs than benefits and discourages investment and the willingness to ‘have-a-go’.
Australia has been caught in the vice of over-regulation.
Excessive regulation stifles our economic prospects and impedes the work of Australia’s community organisations.
Since 2008, the Rudd-Gillard Government has introduced an additional 20,900 regulations and repealed a paltry 104 regulations, despite having promised to cap the growth of regulation with a ‘one-in, one-out’ policy. Instead, of ‘one-in, one-out’ this government has added 200 regulations for every regulation it removed.
As part of the Coalition’s Deregulation Agenda, the Coalition will take immediate action to reduce the red tape burden and lift productivity. These measures include:
– An annual $1 billion reduction in red tape;
– Repealing Labor’s carbon tax;
– Repealing the Minerals Resource Rent Tax;
– Dedicated Parliamentary sitting days for the repeal of legislation;
– Establishing a one-stop shop for environmental approvals;
– Auditing all environmental legislation; and
– Introducing mandatory Regulatory Impact Statements for Cabinet consideration
The Australian Chamber of Commerce and Industry National Red Tape Survey found that 73 per cent of businesses are reporting an increase in regulation compliance costs over the past two years.
The Productivity Commission has estimated that reducing the burden of unnecessary red tape could generate as much as $12 billion in extra GDP per year and the World Economic Forum has ranked Australia’s performance on regulation as 96th in the world, down 28 places since 2007-08.
Since November last year, the Coalition’s Red Tape Reduction Taskforce, Chaired by Senator Arthur Sinodinos AO and Deputy Chairs Ms Kelly O’Dwyer MHR and Senator David Bushby have consulted widely with business, not-for-profits and the community about further steps that can be taken to reduce the red-tape burden on the economy.
The Taskforce has undertaken consultations around Australia and the Coalition is now seeking community and industry comment on the Coalition’s Deregulation Reform Discussion Paper. Proposals for consideration include:
– Requiring departments and agencies to reduce red tape every year and recording the reduction in annual reports.
– Creating a dedicated unit within each department and agency that is charged with driving red tape reduction.
– Requiring departments and agencies to quantify the cost to business and individuals of complying with the regulations administered by them.
– Linking the remuneration of senior public servants to quantified and proven reductions in red tape.
– Including annual red tape reduction targets in the performance criteria to be considered in determining the re-appointment of departmental Secretaries.
– Transferring the Office of Best Practice Regulation to the Department of Prime Minister and Cabinet so it can more effectively tackle red tape across the whole of government.
– Requiring Cabinet submissions to detail any new regulations and, where relevant, to quantify the financial impact on businesses, individuals and society of complying with those regulations.
– Establishment of a national benchmark scheme for local councils to measure approval processing times and promote efficient administration and regulatory management practices.
– Establishment of a single, rationalised Commonwealth procurement panel that would administer a centralised register of service providers.
– The Deregulation Reform Discussion Paper can be downloaded from www.tonyabbott.com.au
Submissions on the discussion paper are invited from business, community groups, state, territory and local governments and from the wider community. The Coalition will release a Deregulation Reform Policy before the next election which will set out our Deregulation Agenda for government.
Deregulation reform is part of the Coalition’s plan to free up Australia’s businesses so that they can create more jobs and opportunities for all Australians. It is also part of our plan to help reduce the administrative burden on Australian community and not-for-profit organisations and allow them to focus more on their important work of strengthening local communities.
The Coalition will cut the regulatory burden on business and community groups by $1 billion a year and curtail the growth of regulation that is impeding the capacity of Australia to grow and succeed.
Our plans will deliver a strong and prosperous economy and a safe and secure Australia.
Click here to download this statement
Click here to read Strengthening Australia's Productivity
Click here to read the Coalition's Deregulation Reform Discussion Paper
Click here to read Tony Abbott's Address to the Economic and Social Outlook Conference, Melbourne