Annual Review of Regulatory Burdens on Business: Social and Economic Infrastructure Services
Report
Annual review of regulatory burdens on business: Social and economic infrastructure services (PDF - 1612 Kb)
Annual review of regulatory burdens on business: Social and economic infrastructure services (Word/Zip - 720 Kb)- Regulation of the social and economic infrastructure services sector is particularly heavy. This resort to a heavy regulatory presence arises because:
- regulation is used to promote competitive behaviour where natural monopolies exist, for example, telecommunications and energy
- of considerable government funding of service delivery, for example, aged care
- there is information asymmetry with service users, for example, medical services
- some service recipients, for example, the frail and aged and young children, are seen as vulnerable and requiring protection
- many businesses in the sector operate across jurisdictions, for example, transport and energy retailers.
- Many industries in this sector are subject to review or reform activity, for example, transport, energy, higher education, telecommunications, aged care and child care. It is important to ensure that the reforms are implemented in a timely fashion and in a way that minimises the regulatory burdens. Much of the reform agenda relies on co operation between governments. Reforms need to move beyond high level agreement on guiding principles to genuinely reduce the regulatory burden at the individual business level.
- This review has identified seven main areas - aged care, child care, information media, telecommunications, energy, air transport and education - where regulations can be made less burdensome.
- Regulation in aged care
- without tackling the underlying policy framework that constrains the supply of aged care services, it is unlikely that the regulatory burden in the industry can be substantially reduced. To reduce the burden associated with regulation and price controls, and to improve the quality and diversity of aged care services, the government should explore options for: relaxing supply constraints in the provision of aged care services; providing better information to older people and their families so they can make more meaningful comparisons in choosing an aged care service; and removing the restriction on bonds as a source of funding
- the aged care regulatory framework is fragmented due to regulation by numerous government agencies. This should be addressed by the current reviews of the accreditation process and standards in consultation with state and territory agencies. There also needs to be more effective communication with the industry on the delineation of responsibilities between the Department of Health and Ageing and the Aged Care Standards and Accreditation Agency regarding monitoring of provider compliance with these standards.
- Regulation in child care
- clarify regulations to ensure a provider can have its Child Care Benefit approval removed if it is not accredited by the National Childcare Accreditation Council
- streamlining of the accreditation arrangements should take place now, prior to the implementation of the proposed COAG reforms.
- Regulation in information media
- the anti-siphoning regime imposes regulatory burdens because of the protracted commercial negotiations required for listed events. This burden should be reduced by substantially reducing the anti-siphoning list
- radio local content rules and disclosure standard should both be made more flexible and associated reporting requirements reduced
- additional local presence and content requirements triggered by ownership changes of radio stations should be abolished
- the Australian Communications and Media Authority should have broader discretion to not investigate some code complaints.
- Regulation in telecommunications
- the telecommunications consumer information obligations should be streamlined
- the identity check requirements for prepaid mobile phones should be revised to lower costs to business while achieving their policy objective of allowing law enforcement agencies to identify mobile phone owners.
- Regulation in the energy sector
- the Ministerial Council on Energy should commission work to consider the practicalities of implementation of the recently agreed pass-through to consumers of cost increases associated with the Carbon Pollution Reduction Scheme
- governments should amend the Australian Energy Market Agreement to ensure clearer commitments to competition reviews by the Australian Energy Market Commission and ongoing price monitoring by the Australian Energy Regulator
- all levels of government need to work cooperatively to reduce the burden associated with excessive reporting obligations, including through the adoption of a methodology consistent with Standard Business Reporting (SBR).
- Regulation in air transport
- shift from a 'one size fits all' approach in aviation security regulation and develop arrangements that satisfy regulatory requirements at lower compliance cost.
- Regulation in education and training
- reforms to streamline reporting obligations in the education sector, including in response to recommendations from the Bradley Report and the anticipated changes to reporting by schools, should be undertaken consistent with the methodology of the SBR initiative. Electronic reporting and secure on-line sign-on to the agencies involved should be introduced.
- Many industries complained of overly burdensome, duplicative and redundant reporting requirements. Extending the SBR principles and methodology to many of the sectors covered in this review could substantially reduce the reporting burden.
- The best practice regulation requirements should be strengthened by increasing transparency and providing greater scope for consultation with business.
