Australian Businesses Spent $160 billion Annually on Regulatory Compliance

The AICD report, titled “$160bn and Counting: The Cost of Commonwealth Regulatory Complexity,” found that compliance with federal regulation now costs Australian businesses $160 billion annually—nearly 6% of GDP, up from $65 billion in 2013. Board time spent on compliance has doubled from 24% to 55% in just 10 years, while external legal spending has jumped from $6 billion to $16 billion since 2010. The research confirms that Australia’s regulatory system is redirecting resources away from growth, innovation, and market expansion.

While the report focuses on larger companies with boards and compliance teams, the burden is even more acute for small business owners who are navigating the same complex regulatory framework without internal legal advisers, compliance officers, or dedicated administrative staff. When you’re the owner, manager, and compliance officer all rolled into one, regulatory complexity doesn’t just eat into board time—it directly cuts into your capacity to serve customers, develop products, and grow your business. While countries like the UK, EU, Canada, New Zealand, and the US are simplifying regulation to drive economic growth, Australian small businesses are left drowning in red tape with limited resources to manage it.

Understanding your compliance obligations is critical to managing costs and risk. Read the full AICD report on regulatory complexity here.

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