Best Practice Regulation

1. Best Practice Regulation Regulatory Impact Analysis Darrell Porter Office of Best Practice Regulation

2. 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

3. Productivity 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.

4. Increasing regulatory burden We want to avoid: • unnecessarily complex regulations • excessive costs of compliance • adverse and unintended effects • inefficient use of substantial taxpayer resources

5. Regulatory governance • Efficiency • Transparency • Accountability • Adaptability • Coherence

6. Regulatory 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

7. Trigger 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

8. Basic elements of a RIS • Problem • Objective(s) • Options • Impact analysis • Consultation • Conclusion and recommended option • Implementation and review

9. 1. 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?

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

11. 3. 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

12. 3. Options • Regulation of spinal manipulation based on risk • Self regulation • Minimum qualifications • Regulate upper spinal manipulation (preferred option)

13. 4. 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

14. 5. 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

15. 6. Conclusion • Clearly state preferred option • Summarise the costs and benefits for the range of groups affected

16. 7. Implementation and review • How will the preferred option be implemented? • How will compliance costs be minimised? • When will it be reviewed? • Evaluation criteria

17. Australian Skills Recognition Information

18. 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