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Impact Assessment of all Regulatory Proposals
Regulation is an important tool for delivering Australia’s social and economic goals. However, over-regulation is a major concern to industry, the community and government. Robust impact assessment of new or amended regulation is a vital part of getting the balance right.
The Council of Australian Government (COAG)’s Best Practice Regulation Guide provides guidance to Ministerial Councils and other national standard-setting bodies such as the ABCB, on best-practice regulation making. The Guide outlines the principles for best-practice regulation agreed by COAG (such as ensuring that regulation is effective and proportional to the issue being addressed) and states that only regulatory proposals that can demonstrate a ‘net benefit’ for the community should be adopted. This principle is supported in the ABCB's Inter-government Agreement.
The ABCB consults regularly with the Office of Best Practice Regulation (OBPR) to ensure that our processes are consistent with our COAG obligations. Since reporting in this area began, The ABCB has been consistently assesed as being fully compliant and we seek to continuously improve our impact assessment processes to ensure ongoing alignment with the COAG National Reform Agenda.
The COAG Best Practice Regulation Guide can be found on the OBPR website by clicking here or on the COAG website by clicking here.
ABCB Impact Assessment Toolkit
The ABCB has developed an Impact Assessment Toolkit to help assess and analyse the costs and benefits of regulatory proposals. The information contained in this Toolkit will increase understanding of the impact assessment process and improve the quality of analysis on proposals to amend the Building Code of Australia.
Based on COAG’s regulatory principles, the ABCB’s Impact Assessment Toolkit consists of the following components:
Impact Assessment Protocol
-The Impact Assessment Protocol outlines the various processes we undertake when analysing and considering proposals to change the Building Code of Australia (BCA). It describes the key components involved in undertaking a RIS and includes flowcharts detailing the impact assessment and consultation mechanisms used in our BCA amendment process. The Protocol has been reviewed by the OBPR and confirmed as being consistent with COAG regulatory principles.
Click here to view the ABCB's Impact Assessment Protocol
Economic Analysis Manual
A vital component of any impact assessment is a rigorous Cost Benefit Analysis. According to the COAG Best Practice Regulation Guide, “Cost Benefit Analysis is an analytical tool that can be used to measure the economic and social impact of government action by reference to the ‘net social benefits’ that action might produce. As such, it can be a valuable aid to decision making”.
The ABCB has developed an Economic Analysis Manual in order to give detailed guidance on how to undertake a major Cost Benefit Analysis on proposals to change the BCA. The Manual serves as a standard methodological text for assessing the impacts of policy proposals on the built environment in a current, streamlined and practical document. The Manual has been approved by the OBPR as being consistent with COAG guidelines and is available to interested parties by request.
Contact the ABCB Office at 1300 134 631 if you would like a copy of the ABCB's Economic Analysis Manual
Proposal for Change Template and Guideline
In accordance with COAG regulatory principles, all regulatory changes must be subjected to a rigorous analysis to ensure there is a sound rationale for the regulation. Proponents of changes to the BCA are required to provide justification to support their proposal, including an assessment of the impacts of the proposed changes.
The Proposal for Change (PFC) Template and Guideline explains a proponent’s impact assessment obligations when proposing a change to the BCA. This includes an explanation of how the proposal is expected to solve an established problem and a demonstrated consideration of the impacts of the proposal. The Guide also provides assistance to the proponent through a series of questions to be answered, and suggestions for meeting the requirements.
Click here to view the ABCB's Proposal for Change Template and Guideline.
Good Practice Guide for Preliminary Impact Assessments
A Preliminary Impact Assessment (PIA) is an early-stage analysis of the costs and benefits associated with a proposal to alter the BCA and its referenced documents. If the preliminary analysis finds substantial impacts, the ABCB will consult with the OBPR to determine whether a full RIS is necessary.
The Good Practice Guide for PIAs explains the importance of early-stage assessments and gives detailed guidance on how to undertake a preliminary assessment. It was developed primarily for use by standards-writing bodies such as Standards Australia, to assist them in meeting the ABCB’s requirements for BCA-referenced documents.
Similar in concept to the PFC process though larger in scope, the PIA process requires that the ‘problem’ be identified, options to solve the problem are considered, the impacts of all options assessed, stakeholders consulted, and a recommendation put forward for decision.
Click here to view the ABCB's Good Practice Guide for Preliminary Impact Assessments.
Consultation Protocol
Industry and community stakeholders can provide first-hand knowledge of the impacts associated with regulatory proposals. So, to ensure that the ABCB continues to deliver a contemporary and relevant building code that delivers good societal outcomes in the built environment, we have developed a protocol for ensuring we undertake best practice consultation with our stakeholders.
This Consultation Protocol explains the ABCB’s philosophy of engaging constructively with the community and industry in key issues affecting buildings. The Protocol also describes the various practical consultation mechanisms and forums that are available to ABCB stakeholders.
Click here to view the ABCB's Consultation Protocol.