Its not so much the working part of the guvnuts that keep the wheels turning . Its this part that is dragging the econmy backwards .
Government bureaucracy – the one area of the Australian economy that never fails to grow. Adam Creighton in The Australian on Wednesday reported that the expansion of the public sector in Victoria and Queensland alone has cost taxpayers an additional $14.5 billion over the last 5 years.
Rules eat up $250 billion a year in profit and productivity
As a result, there are already more ‘compliance workers’ across Australia than there are people working in construction, manufacturing or education roles. In fact, one in every 11 employed Australians now works in the compliance sector.
Is an interesting read as this is both private and public sector costs . Most people out there no they are being swamped with this while working or just going to do something that was once easy in days gone by .
67 billion a year to comply with the rules that cost 27 billion a year to administer in government alone !
However, a decade of prosperity has seen Australia’s policymakers ‘reach for a rule’, often without weighing the costs and benefits of doing so, and the cost of government rules has risen since the last time the Productivity Commission added them up.”
Deloitte Access Economics estimates that Federal, State and local government rules and regulations now cost $27 billion a year to administer, plus a huge $67 billion a year to comply with.
Yet at least the public sector is aware that it can do better. Indeed, today marks this year’s second regulation repeal day at the federal level, following the first in March.
The crushing impacts of dumb rules like these on Australia’s productivity include:
$250 billion – annual burden on the national economy of administering and complying with the rules set by both governments and businesses
$155 billion – annual cost to administer and comply with rules the private sector imposes on itself
8 weeks – time spent each year by the average employee just to pay for the cost of administering and complying with rules
1 million people – employed in ‘the compliance sector’ – the fastest growing sector in Australia.
If you think its slowed down the growth of this sector since 2014 then some one is dreaming as its a very powerful sector that drags on productivity and feeds itself on your time and money while growing astronomically in size each year .
