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Australia's Regulatory Impact Analysis (RIA) Framework key changes over time

Australia has refined and improved its Regulatory Impact Analysis (RIA) settings since first establishing our RIA framework in 1986.

Our framework provides decision makers with the best available information on the net benefit of a policy proposal. It does this by supporting government agencies to analyse policy impacts on individuals, businesses, and community groups. Australia’s approach to RIA is recognised by The Organisation for Economic Co-operation and Development (OECD) as a global benchmark for best practice.

The Office of Impact Analysis (OIA) administers Australia’s RIA requirements from within the Department of the Prime Minister and Cabinet (PM&C).

  • 1985

    The Australian Government establishes the Business Regulation Review Unit (BRRU) in the then Department of Industry, Technology and Commerce.

  • 1986

    RIA requirements are introduced for Cabinet proposals affecting business and are set out in a circular to departments and in the Cabinet Handbook.

  • 1989

    The BRRU is moved to the then Industry Commission and renamed the Office of Regulation Review (ORR).

  • 1996

    The Industry Commission recommends enhanced quality controls on new or amended regulations, and recognises the need for further improvements to ensure RIA requirements are being met.

  • 1997
    • New RIA requirements are implemented to provide the ORR with a stronger gatekeeper role, and increase incentives and sanctions for non-compliance. Decision Regulation Impact Statements and tabling requirements are introduced. 
    • A Regulation Impact Statement (RIS) must address 7 questions: problem definition, objectives, options, impacts, consultation, conclusion, and implementation and review.
  • 1998

    The scope of application of RIA requirements is widened to capture the impacts of ‘quasi-regulation’.

  • 2006
    • A Government review recommends changes to strengthen RIA requirements.
    • Updated guidance on RIA requirements highlights need for departments to quantify compliance costs and undertake consultation.
    • Departments are enabled to self-assess whether a RIS is required.
  • 2007
    • Guidance is further updated as per the 2006 review recommendations. A RIS is required if there are likely to be significant impacts on business and individuals or the economy.
    • The ORR is renamed the Office of Best Practice Regulation (OBPR) and moves to the then Department of Finance and Deregulation.
  • 2010
    • RISs are published on the OBPR website following the announcement of a regulatory decision, with non-compliance also reported.
    • Departments are no longer permitted to self-assess if a RIS is required. Senior public servants are required to certify that a RIS answers the 7 RIS questions before submitting to OBPR for final assessment.
  • 2012
    • An independent review recommends a range of improvements to the Commonwealth’s RIA process. 
    • The Productivity Commission makes recommendations to improve the efficiency and quality of Australia’s RIA processes, including at the state and territory level.
  • 2013

    Guidance is updated to reflect the findings of the 2012 reviews. RIA requirements now apply to regulatory proposals with more than minor impacts on business and the not-for-profit sector. A two-stage process applies including: 

    • An options-stage RIS setting out the problem, objectives and options, used by the decision maker for an initial decision; and 
    • A details-stage RIS which answers all 7 RIS questions.
  • 2014
    • A RIS is now required for all Australian Government decisions on regulatory matters which are more than minor in nature. 
    • An Interim RIS is used for a Cabinet decision where a Standard or Long Form RIS has been recommended by OBPR but the agency does not provide one in the time available. 
    • A Post Implementation Review (PIR) is required to commence within 2 years if the analysis in a RIS sufficiently diverges from best practice.
  • 2020
    • Multiple types of RIS are replaced by a single RIS that is proportionate to the stage of the process, the problem being addressed, and the recommended option.
    • Regulatory costs must still be included in RISs, but no longer need to be agreed with OBPR.
    • Where independent reviews used in lieu of a RIS were previously not assessed for adequacy, they are now assessed by the OBPR for relevancy.
  • 2022

    The OBPR is renamed the Office of Impact Analysis (OIA). The terms RIA and RIS are collapsed into ‘Impact Analysis’ (IA).

  • 2023

    Revised guidance emphasises the role of IA in supporting government decision making and more accurately reflects the scope of IA. Changes include:

    • A Cabinet submission or non-Cabinet decision assessed by the OIA to have a no-more-than-minor impact no longer requires a minor IA.
    • Independent reviews are now termed as ‘IA equivalent’ and can only be used after first seeking OIA’s agreement. OIA now comments on the quality of the analysis when addressing the 7 questions.
    • Deputy secretaries or equivalents are no longer able to delegate the certification of an IA, increasing the level of accountability for quality analysis.