The Australian Government Impact Analysis Framework (the framework) is designed to support decision‑makers to understand the wider impacts, including the intended and potentially unintended effects of a policy proposal and make evidence‑based decisions considering trade‑offs.
The framework outlines the best practice approaches and requirements for conducting impact analysis (IA) and developing IA products to inform decision‑making.
Objectives of the framework
The government is committed to evidence‑based policy development and decision‑making. Analysis of policy options and their likely effects is critical to support government deliberative processes.
Australia has a strong tradition of using impact analysis to assess policy impacts. Since first introduced in 1986, the government has updated impact analysis frameworks to better support the use of evidence-based analysis in the policy process.
Under this revised framework, regulatory policy proposals and proposals with material competition impacts must be subject to an appropriate level of analysis. The depth of analysis should be proportionate to the expected impacts of the policy proposal.
Agencies are responsible for the development of an IA and identifying the costs and benefits of policy changes — including the regulatory burden, economic, social and competition impacts — and to consider how stakeholders are likely to be impacted. Agencies also need to consider viable non-regulatory policy approaches and their likely impacts.
The framework supports the Cabinet and other government decision‑making by providing evidence-based assessment of the likely impacts of regulatory and competition related proposals, as outlined in the Cabinet Handbook and Budget Process Operational Rules (BPORs) requirements.
The government is committed to providing stakeholders and the community with timely analysis on the expected impacts of significant decisions that change how markets operate and impose new or updated rules. IAs are published following the announcement of the policy.
Practical guidance
For agencies responsible for drafting IAs, this document should be read together with the Practical Guide for Agencies, located on the Office of Impact Analysis (OIA) website.
The practical guide provides more detailed guidance on how to navigate the IA process and how to develop robust analysis and evidence on the intended and potentially unintended effects of a policy proposal.
The OIA website also includes supplementary resources which provide further information.
The framework also operates alongside the government’s broader regulatory policy architecture, including the Regulatory Policy, Practice and Performance framework led by the Department of Finance.
The Office of Impact Analysis
Located in the Department of the Prime Minister and Cabinet, the OIA administers the framework and assists agencies to use the framework to support policy decisions. The OIA provides expert guidance to agencies on technical issues related to the framework’s use and conducts training to assist policy officers in preparing IAs.
The OIA also administers the Regulatory Impact Analysis Guide for Ministers’ Meetings and National Standard Setting Bodies for decision‑making between the Australian Government and state and territory and local governments in specific policy areas.
The OIA can be contacted at helpdesk-OIA@pmc.gov.au.
