To conserve resources, departments are encouraged to integrate the evaluation process into existing processes where this is possible and does not diminish the quality of evaluation reports. Furthermore, evaluations should be kept proportionate so that they can be done by VPS staff, without the need for consultants. Once evaluation reports have been prepared, the Commissioner for Better Regulation will review each of evaluation reports. These reviews will focus on the rigour of analysis and presentation of the evaluation (rather than the findings of the evaluation). The Commissioner will identify and highlight the best characteristics of these reports at the Commissioner’s regulator performance improvement forum each year. The elements of good regulatory practice This section outlines the elements of good regulatory practice using a governance and performance matrix. Mandatory elements of good regulatory practice For the SOE Framework, three elements of good regulatory practice have been identified as mandatory for all regulators. These three elements are: (1) timeliness, (2) risk-based regulation, and (3) compliance related assistance and advice (particularly as it relates to small business). This approach will afford a degree of commonality and consistency between regulators. The matrix outlines minimum standards expected for all regulators for each mandatory element of good regulatory practice, and suggested best practice stretch targets for highervolume and higherimpact regulators. Elements of good regulatory practice Minimum standards Characteristics of best practice Performance objectives Timeliness Regulatory costs can often result from issues around the timeliness of approval processes, unanticipated delays and coordination problems in administrative decisions, rather than from regulatory design. Processes/systems are in place to make it as easy as possible for businesses to complete forms. Regulator provides clarity about the timing and scope of regulatory processes. Timetables for completing forms take into account all requests for information that a regulated party is dealing with, including requests from other regulators. Processes/systems are in to make it easy for businesses to submit required data and to check on the status of any applications. Regulator strives for improved ecapability.
Riskbased strategies Riskbased strategies can improve regulatory outcomes by more strategically focusing on activities the risks are the greatest. Enforcement approaches that are not targeted at or proportionate to risk may be too onerous on compliant businesses and result in insufficient enforcement activity being focused on high-risk businesses. Failure to apply riskbased regulation may result in inappropriate priority setting and inefficient allocation of scarce resources. Regulator has collected relevant data to inform a riskbased approach to regulation, and to evaluate outcomes. Regulator has an established approach to risk assessment. Requests for data from regulated parties are proportionate to risk. Riskbased approaches to compliance and enforcement are considered and adopted where appropriate (for example, regulator tailors sanctions so that they are proportionate and meaningful). Risk assessment is consistently applied across all activities. Knowledge of risk informs inspection targeting. Risk assessment processes and methodologies are transparent. Resources are concentrated in areas of greatest risk to the achievement of outcomes. Compliance related assistance and advice Effective assistance and advice reduces the risk of noncompliance. Poor or inaccessible advice may increase the time spent by regulated parties to understand regulatory requirements. Regulated parties should be able to access advice without fear of enforcement action. Regulator provides assistance and advice in order to secure compliance. Advice is: easily available (for example, accessible in appropriate formats); accurate; easy to understand (i.e. written in English); comprehensive (e.g. include illustrative examples); timely (e.g. provided in time for individuals and businesses to adjust to changes in regulation); and, regularly reviewed and updated in light of feedback. Administration and enforcement is accompanied by ongoing advice. Regulator judges the effectiveness of its assistance and advice by monitoring regulated parties’ awareness and understanding of the services. Regulator provides clarity about the status and objectives of advice (i.e. whether it is statutory or nonstatutory). Assistance and advice services cover the full range of regulated activities and are tailored where appropriate to different groupings of regulated parties. Recommended element of good regulatory practice Incentive-based regulation is an extension beyond risk-based regulation, and requires an understanding of regulated entities’ behaviour and motivations. Developing this understanding can take time.
Accountability and transparency Administration of regulation should be subject to public scrutiny. Performance reporting can provide regulators, their stakeholders, the community and the government with a clearer picture of the strengths of Victorian regulators’ existing practices and processes, and where effort is needed to improve performance. However, unless the right things are measured and reported clearly, it is difficult to know how effective a regulator is in achieving its regulatory outcomes. Regulator is transparent about how they administer and, where appropriate, how they enforce regulation (for example, transparent complaints and disputes mechanisms and transparency about the reasons for enforcement decisions). Regulator collects and publishes data that enables it to measure its operational performance. Government priorities are addressed as part of regulator performance reporting. Regulator regularly reviews the efficiency and effectiveness of their regulatory practices and complaint handling processes in order to determine whether regulatory outcomes are being realised. Regulator publishes outcomefocused data on operational performance. Performance objective Clear and consistent regulatory activities Inefficient practices represent a regulatory burden to regulated parties and the community. Ineffective enforcement practices can distort regulatory outcomes. Regulator has documented key administrative and compliance processes and activities. There is a clear purpose for all information that is collected. Regulator is responsive to lessons learned. Regulator undertakes appropriate planning and resource management. Regulator strives to continuously improve administrative and compliance processes and activities. Enforcement activities are carried out in a way that minimises the impact on business (for example, joint inspections with other regulators, businesses are notified in advance of inspections where appropriate). This can be assisted through greater cooperation with other regulators (see above). Good regulatory practice selfassessment This selfassessment table has been designed to help regulators assess their current practices against good practice. It is recommended to serve as the basis for the regulator to consider what can be done to improve current practices and move towards best practice. For each element of good regulatory practice outlined in the governance and performance matrix under section four of the SOE Framework, the following questions can be used as a guide to help the regulator assess current regulatory practices. Based on the
Develop or document coordination of regulatory activities. Establish or document a clear chain of accountability between regulators and departments involved in the regulatory regime. Develop or review monitoring and assurance regimes to ensure that regulatory objectives are being met. Up to date arrangements on regulator’s website and in annual report. Cooperation among regulators Develop strategies to enhance information exchange and capability development between regulators. Report against participation in relevant portfoliobased forums or communities of practice. Provide examples of datasharing initiatives. Stakeholder consultation and engagement Establish and publish stakeholder consultation and engagement strategies. Strategies may include developing websites, newsletters with sector specific or personalised information, onsite visits and ‘on the ground’ learning networks and seminars. Conduct interviews and focus groups with representatives from regulated parties. Document communication activity undertaken by: business category; communication tool used; list consultation documents and stakeholder surveys undertaken by the regulator. Accountability and transparency Establish or improve operational performance reporting systems and processes. Expectations around the publication of targets, results and outcomes of regulator operational performance. Clear and consistent regulatory activities Review of quality control in regulatory practice development and improvement processes. Review administrative processes associated with regulation and develop process performance indicators to use in conjunction with efficiency and effectiveness performance indicators. The SOE letter SOEs under the SOE Framework will be developed by departments, taking into account the key opportunities identified in Good Regulatory Practice Plans (where these have been undertaken), and will be issued by Ministers to regulators. A pro forma SOE letter is provided at Attachment 2. To the maximum extent possible, performance improvements and targets contained in the SOE should be quantified and expressed in of outcomes rather than inputs or activities. Where applicable, performance improvements or targets can include data collection to inform future SOEs. As a guide, it is recommended that an SOE contain between five and 10 improvement measures and performance targets.
DHHS – Communicable Disease Section DHHS – And Poisons Regulation DHHS – Environmental Health Regulation and Compliance – Legionella Team DHHS – Environmental Health Regulation and Compliance – Pest Control Team DHHS – Environmental Health Regulation and Compliance – Radiation Team DHHS – Food Safety Unit DHHS – Private Hospitals Unit DHHS – Tobacco Control Section DHHS – Water Unit Victorian Assisted Reproductive Treatment Authority Victorian Pharmacy Authority Minister for Health Health and Human Services DHHS – Supported Residential Services Minister for Housing, Disability and Ageing Health and Human Services DHHS Standards and Regulation Unit Minister for Families and Children Minister for Housing, Disability and Ageing Health and Human Services Professional Boxing and Combat Sports Board of Victoria Minister for Sport Health and Human Services Services Board and Legal Services Commissioner Victorian Legal Admission Board Working with Children Check Unit Attorney-General Justice and Regulation Business Licensing Authority Consumer Affairs Victoria Victorian Commission for Gambling and Liquor Regulation Minister for Consumer Affairs, Gaming and Liquor Regulation Justice and Regulation Victoria Police – Licensing and Regulation Division Minister for Police Justice and Regulation Greyhound Racing Victoria Harness Racing Victoria Minister for Racing Justice and Regulation Aboriginal Victoria Minister for Aboriginal Affairs Premier and Cabinet Essential Services Commission Housing Registrar WorkSafe Victoria Minister for Finance Treasury and Finance State Revenue Office Treasurer Treasury and Finance