Red tape costs the Australian economy $176 billion, 11 per cent of GDP, each year in foregone economic output. Similarly, in the US red tape is estimated to cost $2 trillion annually, or 12 per cent of GDP.
On 30 January 2017, the Trump Administration released the Presidential Executive Order on Reducing Regulation and Controlling Regulatory Costs. The Order announced a “one-in-two out” approach to regulation, which it described as “for every one new regulation issued, at least two prior regulations be identified for elimination”.
This report outlines the effect of implementing a similar one-in-two-out rule on Australian regulation.