This media release and key points were issued with the annual report series, Regulation and its Review 2002-03, on 7 November 2003.

Compliance with the Australian Government’s regulatory best practice requirements was lower in the past year, according to a Productivity Commission report Regulation and its Review 2002-03.

The report provides detailed compliance information for individual departments and agencies. Over 1800 regulations were introduced by the Australian Government in 2002-03, with 139 regulatory proposals requiring preparation of a Regulation Impact Statement. Adequate Regulation Impact Statements were prepared for decision makers for 81 per cent of these proposals (compared to 88 per cent in 2001-02). As in previous years, compliance with the Government’s Regulation Impact Statement requirements varied considerably among regulators.

Productivity Commission Chairman, Gary Banks, said ‘The potential for the Regulation Impact Statement process to contribute to policy development has yet to be fully realised. Better compliance is needed for regulations with significant impacts on business and the community.’

The report also provides information on trends in compliance for individual regulators since 1998 and highlights the importance of effectively implementing well designed regulation.

The report meets the Productivity Commission’s obligation to report annually on compliance with the Australian Government’s requirements for the review and reform of regulations. Regulation Impact Statements are intended to help inform decision makers about the consequences of proposed regulatory actions, so that resulting regulation can achieve intended goals without placing undue burdens on business and the community.

The Commission’s Office of Regulation Review is responsible for advising departments and agencies about the Government’s regulatory best practice requirements.