A deteriorating policy environment for resources sector development has resulted in $688 billion in forgone private business investment between 2015 and 2025, according to a new report from the Institute of Public Affairs.

The report from the conservative think tank, titled Losing Its Lustre: 11 Reasons Why Investment in the Australian Resources Sector is in Decline, outlines reforms it deems necessary to restore Australia’s investment reputation.

“We have world-class resources, but without the right rules and approvals processes we are unattractive to highly mobile global investment,” IPA executive director Scott Hargreaves said.

“Mainstream Australians have been robbed of the prosperity and higher living standards that would otherwise follow if governments did not put up so many barriers to investment.”

The report points to energy costs, red tape, industrial relations issues and the pursuit of net zero as among the drivers making the country increasingly hostile to investors and outlines suggested remedies. (See full table below)

Report modelling found forgone investment over the past decade had cost each Australian household an average of $4900 per year.

“Investors are responding to the madness of net zero and bad energy policies, ever-higher taxes, and slow approvals processes that can be challenged through vexatious lawfare even years after approvals are granted,” Mr Hargreaves said.

“It’s no wonder that big investors are exploring opportunities in jurisdictions that are more welcoming to projects and resources investment.

“Australia’s political elites have made us a less attractive investment destination. We cannot set the prices we receive for our exports, but we can choose how costly it is to receive approval, build, and operate major projects in Australia.

“We are becoming increasingly reliant on investments made in years gone by and we have failed to renew the pipeline of new investment because our project approvals environment is so difficult to navigate.

“Over decades, politicians have added to the regulatory burden, often without a proper analysis of the impacts on Australians’ lives, and often with little or no actual benefit.

“The result is an extraordinary loss of investment that has deprived the nation of jobs, wages, and tax revenues. Without urgent and significant reform, Australians stand to lose even more.”

• Click HERE to read the full Losing Its Lustre report from the IPA.