Regulation Impact Analysis
Consultation is crucial to the analysis of regulatory proposals. The views of interested parties enhances our understanding of what the problem is, include suggestions of alternative options to address the problem, provide feedback on how the regulatory proposal will work in practice and comment on the costs and benefits of the various options. Information from interested parties improves the rigor and depth of regulation impact analysis by the ABCB.
What is it?
Regulation impact analysis is the methodical assessment of regulatory proposals. There is an internationally recognised framework to assess regulatory proposals, including proposals to amend the NCC, this framework is reflected in the Council of Australian Governments (COAG) Principles of Best Practice Regulation – A Guide for Ministerial Councils and National Standard Setting Bodies. The ABCB has also published a Regulation Impact Analysis Protocol that describes how we undertake regulation impact analysis.
The key steps in regulation impact analysis involve describing the nature and extent of the problem; stating the intended outcomes of proposed action; identifying a range of feasible policy options that are capable of addressing the problem; undertaking cost benefit analysis of these options to identify the option that would deliver the greatest net benefits to society; and consultation to incorporate the views of parties affected by the proposal.
Why it is done?
The Inter-Government Agreement that supports the continuing operation of the ABCB requires us to comply with the COAG Principles of Best Practice Regulation. The ABCB conduct regulation impact analysis to determine whether government intervention is necessary or desirable, prepare Regulation Impact Statements (RIS) where required and consult with the Office of Best Practice Regulation.
Consultation and Final RIS
Each major proposal to amend the NCC is assessed in the form of a RIS. The ABCB prepares Consultation RIS’ for comment by interested parties, with the information gathered during consultation then incorporated into a Final RIS for decision.