Red tape should be priority: think tank

Research shows red tape costs the Australian economy $176 billion a year, far greater than the federal government's estimated $65 billion.

The Institute of Public Affairs says cutting red tape should be the top priority facing the next Australian government because it reduces entrepreneurship, is a handbrake on economic growth and hurts Australia's international competitiveness.

"Only by cutting red tape will the Turnbull government and Shorten opposition be able to deliver the economic growth and prosperity they are promising," Chris Berg, a senior fellow at the think tank says.