The release of Department of Foreign Affairs and Trade (DFAT) review into red tape shows how government is affected by onerous and unnecessary regulation but the bigger issue is the effects of this red tape on outside businesses and individuals.

The Institute of Public Affairs (IPA), Australia’s leading free market think tank, is already undertaking a project designed to reduce the impact of red tape on Australia.

Recent research by the IPA estimates that red tape costs the Australian economy $176 billion in foregone economic output.

The DFAT review found that unnecessary procedures, duplicated processes and the length of time required were not only impacting on the Department’s budget but were also leading to cultural problems within the Department, such as staff feeling as though they were not trusted by the senior management.

These are exactly the same problems that Australia’s businesses and individuals face when dealing with Government.

While it is promising that the Government is taking red tape seriously, it is time for them to examine the impact of red tape on the wider Australian community and put reduction efforts into place to unleash Australia’s prosperity.