The High Cost Of Doing Business In Australia

We have been consistently saying that our government's overtaxation, and over-regulation is strangling businesses by driving cost up, killing jobs economic growth in the process.

As such, this report in today's Australian should come as no surprise:
Landmark research to be released today finds that, compared with the US, airports are 90 per cent more expensive to deliver, hospitals 62 per cent, shopping centres 43 per cent and schools 26 per cent.

The Business Council of Australia study finds iron ore and coal projects cost 38 per more compared with those on the US Gulf Coast, while offshore oil and gas platforms cost 200 per cent more - making the projects among the most expensive in the world and more than three times the cost of offshore oil projects in Thailand or the Gulf of Mexico.

Moreover, productivity is so poor work that takes one hour in the US takes 1.35 hours in Australia - meaning labour is 35 per cent less productive.

In Australia's remote areas, where workers are scarce and mega-projects are under way, this productivity gap is more acute, at 60 per cent and forecast to rise further. The research concludes that massive productivity problems, labour shortages and green tape are all contributing to the surge in costs.

And things are only set to get worse...

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