Identifying and Evaluating Regulation Reform

The Australian Government now has institutions and arrangements in place to identify areas of regulation that are unduly burdensome or ineffective and to develop appropriate reforms. However, the Productivity Commission research report, released 15 December 2011, indicated there was a need to improve how these operated in practice. The Commission was asked by the Australian Government to assess current 'frameworks and approaches' for identifying areas for further regulation reform and methods for evaluating reform outcomes. The Commission found that a range of approaches is required to ensure that the stock of regulation is fit for purpose and to deliver net benefits to the community. They range from 'good housekeeping' measures to in-depth reviews. For most of these, good governance and consultation are crucial to their cost-effectiveness. Areas for wider systemic improvement include prioritising and sequencing reviews and reforms; providing more information on progress in implementing recommendations; the provision of advance information to achieve better focused consultations; incentives and mechanisms for good practice by regulators; and building up skills within government in evaluation and review.