Page Research Centre, Media Release, 30 January 2025
The Page Research Centre, in collaboration with Adept Economics, has released a comprehensive new report shedding light on the severe economic and social consequences of regulatory inefficiencies in Australia. This landmark study highlights the urgent need for reform to address overlapping regulations, rising costs, and delayed investment projects that are undermining Australia’s economic competitiveness.
Key findings from the report:
1. Overlapping regulatory frameworks:
Australian businesses, particularly those in regional areas, must navigate an overwhelming maze of regulations, with up to 90 state and 37 federal rules in some cases. Environmental regulations alone account for millions of words, with Queensland’s regulations totaling 2.73 million words, Victoria’s 2.21 million, and NSW’s 1.49 million.
2. Economic costs of delayed projects:
The McPhillamys Gold Project, valued at $492 million in annual turnover and capable of creating 788 jobs, has been delayed for over two years due to environmental and Indigenous heritage concerns, with potential delays stretching to 10 years.
The Santos Barossa gas project faced delays costing $1 million per day during litigation, revealing the severe economic impact of prolonged project approvals.
3. Taxation pressures:
Australia’s Wine Equalisation Tax (WET), at 29 per cent of wholesale value plus GST, makes it the highest-taxed wine-producing country globally.
Queensland’s 2022 coal royalty hike led Glencore to cancel its $2 billion Valeria coal project, costing 1,250 operational jobs and raising concerns about global investment competitiveness.
4. The cost of “Green Lawfare”:
Legal activism has put $65 billion of investment at risk annually, with significant delays to major projects like Santos’ Barossa gas project.
5. ESG mandate inefficiencies:
Fragmented ESG regulations are stifling funding opportunities for key industries. For instance, 89 per cent of NSW thermal coal production has been excluded from funding by major banks such as ANZ, Westpac, and NAB due to stringent ESG criteria.
6. Small business challenges:
Almost 97.5 per cent of regional businesses are small enterprises, struggling under the weight of complex planning, zoning, and administrative requirements that hinder productivity and growth.
7. Revenue and job losses:
The live sheep export ban threatens a $77 million industry, disproportionately affecting Western Australian farmers and associated jobs.
Impact on everyday Australians:
The findings underscore how regulatory inefficiencies translate directly into higher prices for consumers, reduced local job opportunities, and long-term economic risks for industries critical to Australia’s prosperity, such as agriculture, mining, and tourism.
Call for action:
The Page Research Centre is calling on policymakers to undertake a comprehensive review of Australia’s regulatory framework, streamline processes, and reduce inefficiencies to safeguard economic growth and ensure a fair and competitive environment for businesses.
This must include:
- Remove public funding for Environmental Defenders Offices (EDOs) engaged in “green lawfare” that unreasonably delays or disrupts critical projects.
- Align Australia’s Environmental, Social, and Governance (ESG) policies with emerging global trends that are moving away from strict mandates to avoid making the country uncompetitive.
- Abolish the additional tiers of coal royalties introduced in Queensland in 2022 to restore competitiveness in the coal industry.
Quotes from CEO Gerard Holland:
“Our report makes it clear: judicial and environmental activism combined with overlapping and inefficient regulations are costing Australia billions in lost opportunities. Confronting this challenge isn’t just a bureaucratic exercise—it’s essential for the future of our regions- and our national prosperity.”
“Nearly 98 per cent of regional businesses are small enterprises, yet they face a maze of administrative red tape. We must prioritize reforms that empower these businesses to thrive and drive regional growth.”
About Page Research Centre
The Page Research Centre seeks to inform and influence policy that delivers positive outcomes for rural and regional Australia. With Australia’s economy uniquely reliant on our regional communities that form the foundation of our national prosperity, when we think locally, we bless not only our regions, but the nation.
Find out more about the Page Research Centre team here.
About Adept Economics
Adept Economics, the co-author of this report, is an independent economic consultancy based in Brisbane. Led by economist Gene Tunny, Adept Economics provides high-quality economic analysis and policy advice to support informed decision-making. Their clients have included national, state and local government agencies, industry peak bodies, private sector companies and one of Australia’s largest unions.
Find out more about the Adept Economics team here.
