This document provides an overview of Australia's regulatory impact analysis system and the role of the Office of Best Practice Regulation. Key points include: - Australia has a federal system of government with law-making powers shared between the Commonwealth and states/territories. - The Office of Best Practice Regulation assesses Regulation Impact Statements and provides guidance to ensure regulatory proposals are supported by evidence and cost-benefit analysis. - Developing a Regulation Impact Statement involves identifying the problem, policy options, costs and benefits of each option, and stakeholders to consult to determine the best option.

1. 1
Department of the Prime Minister and Cabinet
BACKGROUND
Australia’s regulatory impact analysis system
Key aspects of Australia’s regulatory policy and governance arrangements
OECD Conference on Measuring Regulatory Performance
16 June, Sydney, Australia
Regulatory Reform Division
Department of the Prime Minister and Cabinet
Australia
www.dpmc.gov.au/regulation

2. 2
Department of the Prime Minister and Cabinet
Australia’s regulatory context
Federal system of government:
• Westminster-like parliamentary system
with Prime Minister
• Common Law legal system
• Law-making powers shared between the
Commonwealth and the
States/Territories
• Local government authorities (e.g.
town/city/regional level) are established
under the laws of each State/Territory
jurisdiction
Source image: http://www.aph.gov.au/About_Parliament/Work_of_the_Parliament/Forming_and_Governing_a_Nation/parl

3. 3
Department of the Prime Minister and Cabinet
Federal level: Executive Government
http://www.aph.gov.au/About_Parliament/House_of_Representatives/Powers_practice_and_procedure/00_-_Infosheets/Infosheet_20_-
_The_Australian_system_of_government
Prime Minister
Head of the Government; elected leader of the party in government (in the case of a
coalition government, the major party).
Cabinet
Federal Government’s pre-eminent policy-making body. It decides major policy and legislative
proposals and is presided over by the Prime Minister. Consisting of about 19 or so senior
Ministers, members are selected by the Prime Minister.
Ministers: Up to 30 Ministers are selected by the Prime Minister. They are responsible for particular
areas of administration within a major department, or may be in charge of a small department. Ministers
are appointed from both Houses of Parliament, although most are Members of the House of
Representatives.
Parliamentary Secretaries/Assistant Ministers: Up to 12 Members and Senators are appointed by the
Prime Minister as Parliamentary Secretaries to assist or represent Ministers in their administrative
responsibilities.

4. 4
Department of the Prime Minister and Cabinet
http://www.pc.gov.au/inquiries/completed/regulatory-impact-analysis-benchmarking
There was widespread
acceptance that deliberate
effort is required by
governments to ensure
regulatory frameworks
deliver high quality
outcomes.
In 2012, the Australian Productivity Commission found that RIA
requirements in all Australian jurisdictions consistent with OECD
and COAG guiding principles

5. 5
Department of the Prime Minister and Cabinet
Australia’s Productivity Commission plays an important role in
enhancing regulatory policy coherence within Australia.
Available from www.pc.gov.au
Some examples of relevant work:
2011 Identifying and Evaluating Regulation Reforms Research
report
2012 Impacts of COAG Reforms: Business Regulation and VET
Commissioned study
2012 Regulatory Impact Analysis: Benchmarking Commissioned
study (COAG)
2015 Business Set-up, Transfer and Closure
Public inquiry
2016 Disruptive Technologies: What do governments need to
do? Commission research project (due June 2016).
Core functions
• Public inquiries and research
studies requested by government
• Self-initiated research and annual
reporting on productivity, industry
assistance and regulation
• Performance monitoring and
benchmarking and other services
to government bodies
• Reviewing competitive neutrality
of government businesses

6. 6
Department of the Prime Minister and Cabinet
Broadening the Australian
Government’s regulatory
reform priorities in 2016
November 2015 announcement:
• Increased focus on productivity
and growth while maintaining
efforts to minimise unnecessary
regulatory burden
February 2016, announcement:
• Annual reports that assess
regulatory performance to date
and set a course of reform over the
year ahead will replace days
dedicated to repealing legislation
in Parliament
Some Australian Government reforms to drive economic
growth, productivity and innovation include:
• Committed $5.6 million over the next three years for
Treasury-led work to ensure Commonwealth regulations
remain fit-for-purpose
• Introducing a regulatory sandbox# exemption to
facilitate the testing of new financial technology
products and services
• Australia’s trade deals to reduce costs and red tape and
other trade barriers as well as improve the trade and
investment environment and facilitate participation in
regional supply chains
• The Government’s Increasing Choice in Home Care
initiative is scheduled to deregulate supply of home
care places in early 2017 and simplify the way services
are delivered in mid-2018
# a ‘safe space’ in which businesses can test innovative products, services, business models and delivery mechanisms without incurring
normal regulatory consequences.

7. 7
Department of the Prime Minister and Cabinet
Australia’s regulatory impact analysis system and the role of the
Office of Best Practice Regulation– a quick overview
The 2014 Australian Government Guide to Regulation:
• Sets out 10 principles for policymakers that highlight expectations about
regulatory quality, stakeholder consultation and transparency.
• Provides guidance to policymakers on how to develop a Regulation Impact
Statement and Post-Implementation reviews
• PIRs must also be prepared when regulation has been introduced, removed, or
significantly changed without an adequate regulation impact statement (RIS).
• Based on the information submitted in a preliminary RIS assessment form,
OBPR can provide advice on whether a RIS is required for a policy proposal
• OBPR helps to:
• progress the proposal through decision making forums, such as Cabinet, in a timely
manner
• ensure full compliance with the Government’s requirements.
24/06/2016

8. 8
Department of the Prime Minister and Cabinet
RIA: Principles for
Australian Government policy makers
1. Regulation should not be the default option for
policy makers: the policy option offering the
greatest net benefit should always be the
recommended option.
2. Regulation should be imposed only when it can be
shown to offer an overall net benefit.
3. The cost burden of new regulation must be fully
offset by reductions in existing regulatory burden.
4. Every substantive regulatory policy change must be
the subject of a Regulation Impact Statement.
5. Policy makers should consult in a genuine and
timely way with affected businesses, community
organisations and individuals.
6. Policy makers must consult with each other to
avoid creating cumulative or overlapping
regulatory burdens.
7. The information upon which policy makers base
their decisions must be published at the earliest
opportunity.
8. Regulators must implement regulation with
common sense, empathy and respect.
9. All regulation must be periodically reviewed to test
its continuing relevance.
10. Portfolio Policy makers must work closely with
their regulatory policy areas throughout the policy
making process.

9. 9
Department of the Prime Minister and Cabinet
Regulation Impact Statement Assessment
Developing a Regulation Impact Statement (RIS)
What policymakers should consider when developing a RIS:
What is the problem you are trying to solve?
Why is government action needed?
What policy options are you considering?
What is the likely net benefit of each option?
Who will you consult about these options and how will you consult them?
What is the best option from those you have considered?
How will you implement and evaluate your chosen option?
Two pass
assessment
process
OBPR
formal
assessment
Preliminary form –
do you need a RIS?
Developing
a RIS
RIS
publication
on website
Office of Best Practice Regulation (OBPR)
• Assesses RISs and Post-Implementation
Reviews
• Provides advice and guidance to assist
agencies to prepare RISs
• Publishes RISs and regular reports on
compliance with the Australian
Government RIA requirements
(http://ris.dpmc.gov.au/)
• Conducts training on Australia’s RIS
process

10. 10
Department of the Prime Minister and Cabinet
24/06/2016

11. 11
Department of the Prime Minister and Cabinet
Massive Open Online Course on Regulatory Impact Analysis
riamooc.com

12. 12
Department of the Prime Minister and Cabinet
Regulatory training from the Australian Public Service
Commission (APSC)
The APSC has two learning and development programmes
specifically relating to regulation:
• Introduction to Better Practice Regulation
– targeted at staff who are new to regulatory implementation or policy
roles.
– aims to develop regulatory skills on how to implement regulation with
common sense, empathy and respect.
– uses a combination of e-learning, a two day face-to-face workshop and
on-the-job training.
• Regulation for Regulators
– will focus on regulatory practitioner skills and is currently being developed by subject
matter experts in consultation with relevant government agencies.
– The programme is expected to be available from late 2016.
24/06/2016

13. 13
Department of the Prime Minister and Cabinet
Australia’s RIA: Guidance for policymakers
available from http://www.dpmc.gov.au/regulation
• The Australian Government Guide to Regulation
• User Guide to the Australian Government Guide to
Regulation
• Is a RIS required?’ preliminary assessment form
• COAG RIS preliminary assessment form
• Regulatory Burden Measurement Framework guidance
note
• Post-implementation reviews guidance note
• Best Practice Consultation guidance note
• Short form and Interim Regulation Impact Statements
guidance note
• Regulation Impact Statement Policy Options guidance
note
• Carve-outs guidance note
• Independent Reviews, RIS-like Processes and the Regulation
Impact Statement Requirements guidance note
• Risk Analysis in Regulation Impact Statements guidance
note
• Individuals guidance note
• Community Organisations guidance note
• Commonwealth Programmes guidance note
• Small Business guidance note
• Sunsetting legislative instruments guidance note
• Cost-benefit analysis guidance note
• Competition and Regulation guidance note
• Environmental Valuation and Uncertainty guidance
• Trade Impact Assessments guidance note
24/06/2016