Summary of COAG’s Regulatory Impact Analysis Process
- Summary of COAG’s regulatory impact analysis process
- 1. Consult the OBPR early
- 2. Consultation RIS assessed as adequate by OBPR
- 3. Consultation RIS made public
- 4. RIS for decision maker assessed as adequate by OBPR
- 5. RIS presented to decision maker
- 6. RIS made public
- 7. Compliance information published
A stylised representation of the Council of Australian Governments (COAG) regulatory impact analysis process is shown in figure 1. This process applies to regulatory proposals being developed for COAG, a ministerial council, a national standard-setting body or a related body. The COAG best practice regulation guide provides more information.
Consult the Office of Best Practice Regulation (OBPR) early to seek advice about whether a Regulatory Impact Statement (RIS) should be prepared.
- The COAG best practice regulation principles [ - 364 KB] and assessment requirements apply to agreements or decisions to be given effect, whether at the Commonwealth or State/Territory level, or both, through principal and delegated legislation, administrative directions or other measures which, when implemented, would encourage or force businesses or individuals to pursue their interests in ways they would not otherwise have done. This does not include purchasing policy or industry assistance schemes.
- The principles and assessment requirements do not apply to agreements or decisions that result in regulation that is minor or machinery in nature and do not substantially alter existing arrangements. Nor do the principles apply to early ‘brainstorming’ discussions of ministerial councils which are not supported by written submissions outlining regulatory options or recommendations regarding regulatory action.
Figure 1: COAG’s regulatory impact analysis cycle a
a Where a regulatory proposal involves the Australian Government the Best Practice Regulation Handbook should be followed.
Send the draft RIS (also known as the ‘Consultation RIS’) to the OBPR for advice as soon as practicable and before the draft RIS is made available for public comment.
- The level of analysis in a Consultation RIS may be lower than the level of analysis expected in the final RIS for the decision maker. This is because the impacts of options are sometimes unclear. The community consultation process is designed to allow interested parties and stakeholders to help identify such impacts.
- Where a trans-Tasman (such as Trans-Tasman Mutual Recognition Arrangement (TTMRA)) issue is involved, the OBPR will refer it to the Regulatory Impact Analysis Team of the New Zealand Treasury for comment (see the OBPR/RIAT protocol for more information).
Consult with affected stakeholders by placing advertisements in all jurisdictions to give notice of the intention to adopt regulatory measures, to advise that the Consultation RIS is available on request and invite submissions.
The RIS should be developed further following its public release, taking into account outcomes from the consultation process and incorporating a list of stakeholders consulted and a summary of their views.
The final RIS for decision makers should be forwarded to the OBPR prior to a decision being made by COAG, a ministerial council, standard-setting body or related body. The OBPR will assess the RIS within two weeks of receipt. The assessment will focus on whether the RIS meets the requirements set out in the COAG best practice regulation guide, including:
- whether the COAG RIS guidelines have been followed;
- whether the type and level of analysis are adequate and commensurate with the potential economic and social impacts of the proposal; and
- whether the RIS demonstrates that the preferred option results in a clear net benefit to the community.
Where the preferred option restricts competition, the benefits to the community of the restriction should outweigh the costs and it should be demonstrated that the objectives of the regulation can only be achieved by restricting competition.
The OBPR will advise the ministerial council or standard setting body of its assessment, incorporating any comments from New Zealand relating to a trans-Tasman issue.
The adequate RIS is presented to the decision maker which might be COAG, a ministerial council, a national standard-setting body or another related body. The aim of the COAG regulatory impact analysis process is to ensure that the impacts of a regulatory proposal are made fully transparent to decision makers in advance of decisions being made.
After the decision, the adequate RIS is made public usually on the internet. This is to ensure that the impacts of the regulation are made fully transparent to the public as soon as possible.
The OBPR reports publicly on compliance with the COAG best practice regulation requirements. The Best Practice Regulation Report is published around November each year.
Contact for information on this page: OBPR contacts page