RMG-128 is currently under review. Please note that updates have been made to the Regulator Performance Reporting section to clarify regulator performance reporting requirements. If you have any feedback on our RMG, or require any further information on these updates or content, please contact us at APS Regulatory Reform.
Audience
This guidance will assist Commonwealth entities that perform regulatory functions, including both standalone regulators and those located within policy departments.
This guidance does not apply where:
Officials should consider the information in this guidance and determine the applicability of the principles as part of their performance reporting under the Public Governance, Performance and Accountability Act 2013 (PGPA Act). |
Key points
This guidance:
What are regulatory functions?Regulatory functions may include administering (for example, providing approvals, making operational rules about, handling complaints on), monitoring, promoting compliance with and enforcing regulation. The Australian Government Guide to Regulatory Impact Analysis defines regulation as, any rule endorsed by government where there is an expectation of compliance. Regulatory functions are exercised across a range of governance arrangements and structures. They may be located within Commonwealth entities not publicly identifiable in their own right as a regulator, and may also hold responsibility for other, non-regulatory functions. This guidance will use the term regulator to refer to identifiable regulators and to entities with regulatory functions. |
Resources
Best Practice Principles
Principles of regulator best practice
Regulators are required to report against 3 principles of regulator best practice through their corporate plans and annual reports.
How to use the principles
Regulators should demonstrate in their performance reporting how they are meeting the Australian Government’s expectations as set out in this guidance.
Regulation is not a one-size-fits-all activity, and regulatory functions, resourcing and capabilities vary across Commonwealth entities. Regulators should draw on the principles to develop tailored performance monitoring and reporting processes and performance measures in consultation with their stakeholders that are appropriately scaled to their role, regulatory posture, specific legislative objectives, functions and environment.
Regulators are encouraged to develop performance measures to allow reporting against each principle, but with the flexibility to determine the extent to which the examples of best practice under each principle are relevant to their own performance.
Regulators are encouraged to adopt outcomes focused performance measures for reporting. Where reasonably practicable, comprise a mix of qualitative and quantitative performance measures should be used.
It is recommended that Commonwealth entities who perform regulatory functions include in their corporate plans recognition of the three principles of regulator best practice and their Statements of Expectations set out by responsible Minister(s) and their responding Statements of Intent set out by the Accountable Authority of the entity.
Where do I report performance?
The PGPA Act and the Public Governance, Performance and Accountability Rule 2014 (PGPA Rule) set out the Australian Government’s governance and accountability arrangements for Commonwealth entities.
As better practice, regulator performance reporting can be incorporated into an entity’s non-financial corporate reporting to provide transparency and accountability. Where there are established performance measures set out in the corporate plan that relate to regulatory activities, these are reported on in the annual performance statements.
This supports transparency and accountability of regulator performance by requiring the inclusion of this information in a consistent location for all regulators, and in reports subject to the scrutiny of the Parliament and the Auditor General. It also reduces duplication in regulator performance reporting.
Examples of different approaches to integrating these expectations in corporate plans are provided under the Better practice examples tile in RMG-132 Corporate plans for Commonwealth entities.
Entities that perform regulatory functions should consider developing performance measures for these functions if they are appropriate indicators of the entity's performance. Refer to RMG-131 Developing performance measures for information on the concepts for developing performance measures and the specific requirements.
Related resources including related RMGs, links, glossary terms and relevant sections of the PGPA Act and Rule are located in the right-hand menu.
While regulators are often operationally independent of government, this does not mean independent of expectations or guidance about how they fulfil their statutory roles. Commonwealth regulators are typically accountable to the Parliament, including through Senate Estimates and Australian National Audit Office scrutiny.
The Executive Government will also set out its guidance through Ministerial Statements of Expectations. These Statements are issued by the responsible Minister to a regulator or an entity with regulatory functions, to provide greater clarity about government policies and objectives relevant to the regulator’s statutory objectives and how it conducts its operations. The regulator responds to a Ministerial Statement of Expectations with a Regulator Statement of Intent that, in turn, identifies how it will deliver on the Government’s expectations.
Ministerial Statements of Expectations should be issued or refreshed every two years for all Commonwealth entities with regulatory functions, or earlier if there is a change in Minister, change in regulator leadership, or significant change in Commonwealth policy. As best practice, Ministers should work closely with their Secretaries and heads of Regulators in developing these Statements as part of an ongoing productive and close partnership. Regulators should integrate these Statements into performance reporting through their corporate plan and annual report. These Statements should be made publicly available on regulator websites or on transparency.gov.au as part of a corporate plan and/or annual report. Further advice on developing Ministerial Statements of Expectations and Regulator Statements of Intent are provided in the guidance note.
