Consultation is crucial to improving regulatory proposals because hearing your views enhances our understanding of the problem. Suggestions of alternative options to address the problem, feedback on how the regulatory proposal will work in practice, and comments on the costs and benefits of options improves the depth of regulation impact analysis.
What is it?
Regulation impact analysis is the methodical assessment of regulatory proposals. We use an internationally recognised framework to assess regulatory proposals. This includes proposals to amend the National Construction Code. The ABCB also publishes a Regulation Impact Analysis Protocol, which describes how we do regulation impact analysis.
The key steps in regulation impact analysis involve:
- describing the nature and extent of the problem;
- stating the intended objectives of proposed intervention;
- identifying a range of feasible policy options capable of addressing the problem;
- undertaking a cost-benefit analysis of these options to identify those that produce the greatest net benefit to society; and
- consultation to receive and incorporate the views of parties affected by the proposal.
Why it is done?
The ABCB conducts regulation impact analysis, as required by its Intergovernmental Agreement, to determine if government intervention is necessary or desirable. A formal Regulation Impact Statement (RIS) is prepared where required by the Office of Best Practice Regulation.
A RIS is prepared for two main audiences. One is the decision-makers, for whom a balanced assessment of the options and their effectiveness in solving the problem is critical. The other is stakeholders, who have a right to be consulted about regulations affecting them.
Consultation and Decision RIS
A RIS is developed in two stages. The first stage is for public consultation and the final stage, incorporating consultation feedback, is for decision making. RISs are developed in accordance with best practice regulation principles. They are described in the Regulatory impact analysis guide for ministers’ meetings and national standard setting bodies (May 2021). A RIS aims to identify the need for regulatory intervention and options to generate net benefit to society.