Article by Staff Reporter courtesy of the West Australian
Almost 400,000 additional businesses and 900,000 jobs would have been created in 2018-2019 if regulation and red tape were maintained at 2004 levels, with wages worth more than $26 billion lost as a result.
A report released by conservative think tank the Institute of Public Affairs found that while regulation was cut by 5 per cent under the Abbott government in 2013-15, it had since grown by 10 per cent.
The report How Red Tape Stops Business And Job Creation recommended that “all government fees and charges” incurred in establishing a business be abolished and corporate tax reduced.
“Australia’s entrepreneurial spirit has been crushed by red tape,” IPA research fellow Cian Hussey said.
“Fewer businesses are being created compared to 15 years ago and red tape is stopping those businesses that are created from growing and employing more Australians.”
It comes as The West Australian reported on Tuesday that 32,000 jobs could be created in the mining sector alone within five years if governments cut red tape and corporate taxes.
Mr Hussey said the destruction of small businesses caused by COVID-19 lockdown measures was “part of a long-term trend” of declining self-employment, business creation and entrepreneurship.