Office of Best Practice Regulation

Best Practice Regulation

Regulatory Impact AnalysisDarrell Porter

Office of Best Practice Regulation

Office of Best Practice Regulation

Productivity agenda

Productivity is a key Australian Government priority Reducing the level of unnecessary or poorly

designed regulation will contribute to improved productivity and future living standards for all Australians

Minimum effective regulation

Office of Best Practice RegulationProductivity connection

Almost all regulations can impact on productivity, either through: incentives which they provide to businesses to

change operating and investment decisions; or their impacts on compliance costs.

Office of Best Practice RegulationIncreasing regulatory burden

We want to avoid: unnecessarily complex regulations excessive costs of compliance adverse and unintended effects inefficient use of substantial taxpayer

resources

Office of Best Practice RegulationRegulatory governance

Efficiency Transparency Accountability Adaptability Coherence

Office of Best Practice RegulationRegulatory principles

Establish a case for action Examine alternatives to regulation Adopt option with greatest net benefit Promote effective guidance to regulators Revisit regulation regularly Consult effectively with stakeholders

Office of Best Practice RegulationTrigger point

A Regulation Impact Statement is required for all proposals likely to have a regulatory impact on business or the not-for-profit sector, unless that impact is of a minor or machinery nature and does not substantially alter existing arrangements.

Presented to decision maker at the time of the decision

Office of Best Practice RegulationBasic elements of a RIS

Problem Objective(s) Options Impact analysis Consultation Conclusion and recommended option Implementation and review

Office of Best Practice Regulation1. Identify the problem

What is the problem to be addressed? Why should Government intervene?

‘market failure’ regulatory failure social goal unacceptable risk

Is there existing regulation? If there is, why is further action needed?

Office of Best Practice Regulation2. Objectives of government

What are the objectives of government action? Identify outcomes, goals, targets Link to identified problem Error to preclude reasonable options

Office of Best Practice Regulation3. Range of options

Non-regulatory options Information and education

Self regulation Codes of practice designed and enforced by

industry Quasi-regulation

Industry/government agreements Explicit government regulation

Office of Best Practice Regulation3. Options

Regulation of spinal manipulation based on risk Self regulation Minimum qualifications Regulate upper spinal

manipulation (preferred option)

Office of Best Practice Regulation4. Impact analysis

For each option Identify who is affected Analyse costs and benefits Quantify compliance costs Assess impacts on competition Quantify other impacts where possible Level of analysis must be commensurate with

the level of impacts

Office of Best Practice Regulation5. Consultation

Consultation statement includes Who has been consulted How was consultation conducted What are their views (highlight dissenting views) How did their views affect the outcome If their views were not addressed, explain why If consultation was limited or not undertaken,

explain why

Office of Best Practice Regulation6. Conclusion

Clearly state preferred option Summarise the costs and benefits for the

range of groups affected

Office of Best Practice Regulation7. Implementation and review

How will the preferred option be implemented?

How will compliance costs be minimised? When will it be reviewed?

Evaluation criteria

Office of Best Practice Regulation

Australian Skills Recognition Information

Office of Best Practice Regulation

Gatekeeping arrangements

A regulatory proposal cannot proceed to Cabinet or other decision maker unless it has complied with the Government’s RIA requirements.

Prime Minister may grant exemption Online ‘live’ RIS register at www.obpr.gov.au OBPR independently oversees process and

provides training