Investment in future Government efficiency Despite continued net reductions in the cost of complying with Commonwealth regulations, the pace of reductions has started to slow (Figure 2). The slowdown in net progress reflects a number of developments, including a shift in the focus of the Agenda as it has matured towards regulatory reforms that require greater investment of effort and more coordination across agencies to deliver substantial change. Some of these investments are already underway and the successful implementation of these reforms should give rise to important benefits. As part of the Government’s Digital Transformation Agenda, the Digital Transformation Agency is working across Government to make it simpler and faster for businesses and individuals to interact with Government and comply with regulations. Efforts to streamline and improve access to Government services will increase the speed at which businesses and individuals access these services, further reducing the administrative burden of complying with Government regulations. The National Business Simplification Initiative (NBSI) is based on an agreement between the Commonwealth Government and all jurisdictions to work together to make it simpler to do business in Australia. The goal of the NBSI is to provide real savings to businesses so they can focus on growing their business, creating more jobs, developing new products, and exploring new market opportunities. Figure 2: Cumulative net compliance cost savings from September 2013 to 30 June 2017
Figure 4: The RPF process The Government has received positive feedback on the RPF from a range of stakeholders. This highlights the importance of holding regulators to account and promoting constructive relationships between Australian government regulators and their stakeholders. 2015-16 self-assessments As in the 2015 Annual Red Tape Reduction Report, the first period for regulators to self-assess their performance against the RPF commenced on 1 July 2015 and concluded on 30 June 2016. Following the conclusion of the 2015-16 financial year, regulators then had a further six months to conduct, externally validate, and publish their first self-assessment reports for the period. As of 30 June 2017, over 90 per cent of Commonwealth regulators covered by the RPF had completed and published their self-assessment reports, which can be found online, usually on the regulator’s or their parent agency’s website. “The Regulator Performance Framework offers an excellent opportunity for Federal regulatory agencies to reflect on their processes” Financial Planning Association of Australia The published reports demonstrate the breadth of regulatory activity undertaken by regulators – for example, the Australian Maritime Safety Authority (AMSA)’s approved stakeholder engagement body, the AMSA Advisory Committee, is comprised of senior representatives from 15 organisations which are touched by AMSA’s regulatory footprint, including Ports Australia, the Royal Australian Navy, the Australian Antarctic Division and Yachting Australia. Reports also outlined how regulators engage with their regulated populations. In some cases, regulators’ stakeholder engagement processes had not been captured elsewhere in annual reporting processes and so the RPF helped to paint a more complete picture of regulators’ stakeholder engagement activities. The reports also identified areas for improvement and allowed regulators to respond to negative feedback, particularly where their activities are dictated by their governing legislation. For example, AMSA’s self-assessment report noted stakeholder concerns that simple communication of complex legislative rules was sometimes a challenge. However, the report noted that it has provided numerous consultative mechanisms to formal advisory groups, ‘pushed’ information, and dedicated liaison officers for regions to assist with providing wide-ranging and simple communication strategies.
This included 13 independent reviews certified by agencies as undertaking review and analysis equivalent to a RIS. Table 3: Australian Government RIS compliance at the final decision-making stage 1 January 2016 – 30 June 2017 Stage Number RISs required 58 Compliant RISs prepared 57 Best practice RISs 43 Exceptional circumstances exemptions 1 Of the 57 Commonwealth RISs reported as compliant by the OBPR, 43 were judged to represent RIA best practice. Best practice is the judgement that the RIS is consistent with the principles contained in the Government’s RIA framework and reflecting a level of rigour, consultation and analysis commensurate with the problem being addressed. The remaining 14 RISs achieved compliance with RIS requirements, but to meet best practice have required one or more of the following: greater definition of the policy problem addressed; a greater level of analysis commensurate with the likely impacts; a higher level of consultation or representation of stakeholder views on the options and likely impacts on regulated stakeholders and the economy; or meeting transparency and publishing milestones. All but one significant regulatory proposal was supported by a RIS or a certified independent review at the time it went to assessment by a decision maker. The exception was a decision granted by the Prime Minister to exempt the Competition and Consumer (Industry Code—Sugar) Regulations 2017 (Cth) from the RIS requirements due to urgent and unforeseen events. A RIS explaining the introduction of a prescribed mandatory industry code under the Regulations could not be prepared before the decision was taken. The Treasury reported the regulatory costs to the OBPR within three months of the decision in accordance with Government requirements for a Prime Minister’s exemption. A PIR of the operation of the Code must be completed within two years of implementation. Australian Government RIS compliance by portfolio is shown in Appendix C. Summaries of agencies’ Australian Government RIS status by financial year is available on the on the Department of the Prime Minister and Cabinet website. Post-Implementation Reviews Under the Australian Government’s RIS process, agencies must complete a PIR: within five years of implementing a regulatory change which has a substantial or widespread impact on the economy; or within two years where an adequate RIS was required but not prepared or where a Prime Minister’s exemption was granted.
Attorney-General's 3.7 17 42.8 5 39.0 Communications and the Arts 2.2 7 7.1 3 4.8 Defence (incl. Veterans' Affairs) 9.9 5 10.0 2 0.0 Education and Training 5.4 4 10.0 6 4.6 Employment 496.1 15 510.5 7 14.4 Environment and Energy -1.6 7 4.5 6 6.1 Finance 0.0 0 0.0 0 0.0 Foreign Affairs and Trade 10.0 3 14.8 2 4.7 Health 78.9 19 103.8 10 24.8 Human Services 70.0 14 70.0 0 0.0 Immigration and Border Protection 69.5 10 69.6 1 0.1 Industry, Innovation and Science 68.4 8 69.3 4 0.9 Infrastructure and Regional Development 22.2 15 33.0 3 10.8 Prime Minister and Cabinet 0.8 2 0.9 1 0.0 Social Services 27.0 12 28.5 7 1.5 Treasury 25.2 68 425.2 23 400.0 Total 925.5 219 1,437.2 82 511.8 Table A. 3: Net regulatory savings by portfolio for the period 1 January 2017 to 30 June 2017 Portfolio Net Savings ($ millions) Number of Regulatory Savings Gross Savings ($ millions) Number of Regulatory Increases Gross Increases ($ millions) Agriculture and Water Resources -3.5 2 0.0 7 3.5 Attorney-General's 4.0 5 4.0 0 0.0 Communications and the Arts 2.0 4 2.0 0 0.0 Defence (incl. Veterans' Affairs) 0.0 1 0.0 1 0.0 Education and Training -1.6 0 0.0 2 1.6 Employment 3.9 11 7.7 3 3.8