The Morning Edition Wasting billions: The government system hurting your hip pocket
Nov 16, 2025
Shane Wright, Senior Economics Correspondent for The Age and SMH, dives into Australia's convoluted federation system and its costly inefficiencies. He reveals how state-federal mismatches in health care and regulations lead to wasted billions each year. From inconsistent helmet standards to complex payroll taxes, Shane explains how these frictions hinder economic activity and burden taxpayers. He discusses the critical need for bipartisan reform and national standards to fix the broken system, emphasizing the realistic challenges ahead.
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Fragmented Responsibilities Raise Costs
- Australia's federation bundles responsibilities across governments creating costly mismatches.
- Shane Wright says states run hospitals while the federal government runs aged care, causing inefficient patient placements and higher costs.
Helmet Laws Differ Between States
- Shane Wright gives a concrete example of inconsistent rules between states.
- He explains a NSW-standard mountain bike helmet would be illegal in Tasmania due to divergent rules on helmets.
Tiny Frictions Add Up Economically
- Small regulatory frictions multiply into significant economic costs.
- Moving a battery interstate requires extra paperwork across states, adding needless cost and inefficiency.