Half the Federal bureaucracy are regulators – IPA
The number of federal government employees engaged in regulatory roles will have grown to 106,000 people by the end of the 2025 financial year, according to the Institute of Public Affairs (IPA).
The IPA has released a research update saying that this106,000 figure represents an increase of more than 5,000 people from the 2024 financial year and an overall increase of 15,000 or 17% from the 2023 financial year.
“Annual staffing costs to employ red tape enforcers alone will be approximately $14.7 billion by the end of the 2025 financial year. This is an increase of $797 million (+5.7%) from the 2024 financial year,” the IPA analysis said,
The IPA research pointed to the highest rate of increase in regulatory staffing numbers being the Climate Change, Energy, Environment and Water portfolio which will have grown 76% over two financial year, but it also noted costs with respect to the financial services regulators, the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority.
According to the IPA table of findings, ASIC’s regulatory staffing numbers increased by 14% to 1,948 between 2023-24 and 2024.25 for a 14.6% increase in staffing costs to $329 million.
It said that the Australian Prudential Regulation Authority had grown from 857 to 893 for an increase of 4.2% in staffing numbers, with an associated increase in staffing costs of 11%.
The IPA analysis also pointed to the fact that the Department of Treasury itself had grown 6.7% from 1,487 to 1,586 with a 10.3% increase in regulatory staffing costs to $256 million.
The analysis said that by 2025, the average staffing level across the Federal Government (excluding military and reserves) is forecast to reach 209,150.
“This means that over half the Federal Government workforce will be engaged in regulatory activity,” it said.
The only 2 things Canberra produce are Lies & Red Tape.
And we need far less of both, not more.
all based on the assumption Australia remains prosperous, it doesn’t take long to see small business everywhere is struggling under red tape. No wonder politics globally is volatile and decisions suit their interests not the tax payer, where is the economic value here.
In spite of increased staff numbers at ASIC, consumers are being harmed by scams and unlicensed advice in record numbers. It seems that every extra resource ASIC gets is devoted to the persecution of honest, professional, licensed advisers, rather than to genuine consumer protection.
Well just look at the lunacy of recent legislation. Financial Advisers need to be registered now, and also licensed, and the licensee needs to authorize them and inform and pay a fee to ASIC as well. So that’s 3 different divisions within ASIC. From 2025 they’ll be the new registration fee coming into effect too. So we will need yet another team to process those fees. Now of course all these new teams within ASIC will need their websites too and hold weekly if not daily team meetings within themselves and with other teams.
Heaven help any Licensee that notifies ASIC that an Adviser left but overlooks telling just one of these other departments. However, larger licensees love this duplication and complexity as a means of providing services to Advisers. So they sit there silently when talking to ASIC and nod their heads in appreciation, their jobs are more secure.
Yet contact ASIC about a scam and they’re out in a team meeting….or culling Advisers.
Or on stage dressed as Sherlock Holmes.