Best Practice Regulation Report 2006-07

The first 'report card' on the operation of the Commonwealth's enhanced processes for making and reviewing regulation, was released today by the Productivity Commission. The Best Practice Regulation Report 2006-07 found that significant progress had been made in the transition year, with relatively high rates of compliance by most government departments and regulatory bodies.

The new arrangements came into effect on a transitional basis in November 2006, in response to recommendations by the Regulation Taskforce chaired by Gary Banks. Key features include more rigorous requirements for assessing business compliance costs, a whole-of-government policy on consultation and strengthened gate-keeping arrangements. Agencies are being assisted, and their compliance monitored, by the Office of Best Practice Regulation (OBPR), which replaced the Office of Regulation Review and has been given a wider remit.

Implementation of the arrangements was overseen by a group of senior officials from key agencies, who signed off on a new Handbook detailing and explaining the best practice requirements.

In the early part of 2006-2007, the rate of compliance with the previous Regulation Impact Statement requirements was 86 per cent, slightly up on the previous year.

Under the new arrangements, the formal compliance rate recorded was 94 per cent, with a Regulation Impact Statement not prepared for one significant regulatory proposal. In addition, two regulatory proposals were granted exceptional circumstances status. Under the new rules all three regulations are required to undergo post-implementation reviews within one to two years.

For regulations made by ministerial councils and national standard-setting bodies, the rate of compliance with similar COAG requirements in 2006-07 was 94 per cent, well up on the 76 per cent rate achieved the year before.