Free market think tank the Institute of Public Affairs welcomes the latest Productivity Commission report urging governments to ease red tape barriers against new digital platforms and technologies.

“New innovative business models relying on digital platforms, such as Uber and Airbnb, are increasingly becoming a regular part of everyday Australians’ daily lives,” said IPA Senior Fellow Dr Mikayla Novak.

“As more Australians embrace the efficiency and convenience of digital technology, it is vital that governments don’t regulate to prevent the efficient and rapid adoption of new ways of doing business or serving customers.”

“But worrying the Productivity Commission has found that government red tape is already hampering technological take‑up, preventing this country being more economically agile.”

“The IPA wholeheartedly supports the Commission’s recommendations for ‘light touch’ regulation approaches, including grace periods from more onerous red tape, to drive our economic transition to a better future.”

IPA analysis shows that the economic cost of red tape to the Australian economy is a staggering $176 billion, or 11 per cent of GDP, with almost 497 federal government bodies involved in the regulatory system.

“The IPA calls on both major parties during this 2016 election campaign to endorse the Commission’s approach for cutting red tape to unleash productivity‑enhancing digital disruption.”