14 August 2014

Commonwealth Regulatory Burden Measure

The Regulatory Burden Measure (https://rbm.obpr.gov.au/) has been published by the Office of Best Practice Regulation.

Under the Australian Government Guide to Regulation, all regulatory costs, whether arising from new regulations or changes to existing regulation, and associated offsetting regulatory savings must be quantified using the Regulatory Burden Measure, consistent with the Regulatory Burden Measurement framework.

Agencies are required to use the Regulatory Burden Measure to quantify costs and cost offsets, unless an alternative is agreed with the Office of Best Practice Regulation. Any alternative must be consistent with the Regulatory Burden Measurement framework.

The Regulatory Burden Measure supersedes the Business Cost Calculator and should be used from now on, unless continuing work on an existing Business Cost Calculator costing. Note, the Regulatory Burden Measure cannot read Business Cost Calculator save files, so the old Business Cost Calculator remains available to provide support for agencies that need access to regulatory costings created using the Business Cost Calculator (https://old-bcc.obpr.gov.au).


13 August 2014

Sunsetting legislative instruments guidance note

The Office of Best Practice Regulation (OBPR) has published a range of guidance material associated with the Australian Government Guide to Regulation.

Starting from 1 April 2015, thousands of instruments will begin to sunset in the absence of any intervention under the Legislative Instruments Act 2003. Some of those instruments have significant impacts on businesses, community organisations or individuals. Under the Australian Government’s regulatory impact analysis rules, the decision to continue such instruments would normally require the completion of a Regulation Impact Statement (RIS). Because of the large number of sunsetting instruments, an alternative process will apply in cases where the sunsetting instrument is being remade without significant change.

This guidance note provides information about the RIS requirements as they apply to sunsetting instruments that have a regulatory impact on businesses, community organisations or individuals.


13 August 2014

Commonwealth programmes guidance note

The Office of Best Practice Regulation (OBPR) has published a range of guidance material associated with the Australian Government Guide to Regulation.

This guidance note supplements the Guide to Regulation by providing additional information to help policy makers understand whether a Regulation Impact Statement is required for proposed changes to a programme (including government benefits, grants, procurement, and cost recovery arrangements). This note provides information on how to quantify the regulatory costs of such proposals in line with the Regulatory Burden Measurement framework.


13 August 2014

Competition and regulation guidance note

The Office of Best Practice Regulation (OBPR) has published a range of guidance material associated with the Australian Government Guide to Regulation.

The way businesses compete against each other greatly affects the welfare of consumers. In the absence of competition, consumers are likely to be worse off. Competition can also be a driver of efficiency and innovation, both of which lead to enhanced productivity. For that reason, the Guide to Regulation and the COAG Best Practice Regulation Guide, require that the competition impacts of new regulatory proposals be examined in a Regulation Impact Statement (RIS).

Furthermore, both the Guide to Regulation and the COAG Guide require additional ‘competition tests’ for a RIS that recommends a regulatory proposal that the OBPR has assessed as restricting competition.

The purpose of this guidance note is to assist policy makers to understand the RIS requirements associated with these additional tests.


13 August 2014

Environmental valuation and uncertainty research report

This research report has been produced by the Office of Best Practice Regulation (OBPR), a division of the Department of the Prime Minister and Cabinet, in consultation with the Department of Environment. It was prompted by a recognised need to improve the quality of guidance material relating to environmental valuation in regulatory impact analysis, and through discussions with community organisations.

Its aim is to enhance the capacity of Australian Government departments and agencies to undertake cost-benefit analysis of policies that are likely to have an environmental impact, or that are characterised by significant uncertainty. The particular emphasis in this report is on the preparation of Regulation Impact Statements. However, the relatively general nature of the document means it is likely to be of use to a broader audience, including policy officers in other jurisdictions working on initiatives that require environmental valuation.


13 August 2014

Post-implementation reviews guidance note

The Office of Best Practice Regulation (OBPR) has published a range of guidance material associated with the Australian Government Guide to Regulation.

Australian Government agencies must undertake a post-implementation review (PIR) for all regulatory changes that have major impacts on the economy. PIRs must also be prepared when regulation has been introduced, removed, or significantly changed without a regulation impact statement.

This guidance note provides more information on PIR requirements.


13 August 2014

Environmental valuation guidance note

The Office of Best Practice Regulation (OBPR) has published a range of guidance material associated with the Australian Government Guide to Regulation.

This guidance note provides advice on incorporating environmental impacts and uncertainty into regulatory impact analysis. It should be read in conjunction with the Guide to Regulation and the Council of Australian Governments best practice regulation: A guide for ministerial councils and national standard setting bodies.


13 August 2014

Regulatory Burden Measurement framework guidance note

The Office of Best Practice Regulation (OBPR) has published a range of guidance material associated with the Australian Government Guide to Regulation.

All regulatory costs, whether arising from new regulations or changes to existing regulation, must be quantified using the Regulatory Burden Measurement framework. The framework must also be used for quantifying offsetting regulatory savings, where applicable.

This guidance note provides advice on how to calculate regulatory costs using the Regulatory Burden Measurement framework.


13 August 2014

Australian Government Guide to Regulation – Guidance Notes

The Office of Best Practice Regulation has today published a range of guidance material associated with the Australian Government Guide to Regulation. The purpose of these guidance notes are to assist policy makers on particular aspects of preparing a Regulation Impact Statement (RIS) or Post-implementation review.

These documents will be updated from time to time as necessary to support the Guide to Regulation.

The full list of guidance notes is:

  1. User Guide to the Australian Government Guide to Regulation
  2. Best practice consultation guidance note
  3. ‘Is a RIS required?’ form
  4. Carve-outs guidance note
  5. Regulatory Burden Measurement framework guidance note
  6. Cost-benefit analysis guidance note
  7. Individuals guidance note
  8. Commonwealth programmes guidance note
  9. Short Form RIS templates guidance note
  10. Competition and regulation guidance note
  11. Risk analysis in regulation impact statements guidance note
  12. Environmental valuation guidance note
  13. Community organisations guidance note
  14. Trade impact assessments guidance note
  15. Independent reviews and the RIS process guidance note
  16. Sunsetting legislative instruments guidance note
  17. Post-implementation reviews guidance note

The Guidance notes can be downloaded from the DPMC website.


6 August 2014

Streamlining Disclosure and Liability Requirements– Details-stage Regulation Impact Statement – The Treasury

On 15 May 2014 legislation was introduced into Parliament to reduce disclosure requirements and company Directors’ risk in relation to the issuance of simple retail corporate bonds.

Previously, the Corporations Act required a corporation to prepare a full prospectus for the offer of corporate bonds to retail investors. Additionally, a Director had liability for any misstatement in, or omission from, the disclosure document irrespective of whether the Director was involved in the misstatement or omission.

The RIS considers that the relatively onerous disclosure and liability requirements have resulted in an unnecessarily low number of simple retail corporate bonds being issued. Consequently, the RIS proposes to limit the disclosure obligations by introducing a 2-part prospectus for certain bond issuances. The 2-part prospectus is structured accordingly into a base component and an offer-specific component:

  • Base: the base component can be used for three years and contains general information that is unlikely to change significantly over three years about the issuer and the bond issue.
  • Offer-specific: for each fund raising tranche, issuers will need to provide a second document outlining the key details of the offer, that being the offer-specific prospectus.

The changes also limit the application of the Directors’ liability requirements.

It is considered that these changes will reduce the costs of issuing simple retail corporate bonds, and consequently increase the number of these bonds that are issued.

The RIS estimates that the regulatory cost reductions will be zero. This is because no corporate entities intended to issue retail corporate bonds in the future under the previous regulatory regime.

Consistent with the best practice regulation requirements, a Details-stage RIS was prepared by the Treasury and assessed as adequate by the Office of Best Practice Regulation.