How would a government go about closing down CASA and outsourcing the function to, say, CAA (NZ)?
That’s easy.
But that won’t help unless the regulatory Frankenstein that is the Australian regulations is also destroyed. CAA NZ would simply find itself captive of the same Frankenstein.
Australia needs a new regulatory regime, first. Who runs the regulatory authority in that new regime is step 2.
The fundamental, chronic problem in Australia is that governments continue to leave it to the regulatory authority to drive the development of the regulatory regime the regulator administers, including the regulator’s own role in that regime. Surprise, surprise: The regulator’s response to any and every perceived problem is more regulation and more expensive interactions with the regulator.
The fact that the opportunity cost of 'safer' skies may be to expose people to greater risk elsewhere is not CASA's 'problem'. Community Service Flight regulation: QED. Die through lack of medical treatment or in a long road trip trying to get it? Not CASA's problem.