On 19 July 2013, the Equipment Energy Efficiency Committee released a Consultation Regulation Impact Statement (RIS) which explores options for improving the energy efficiency of air source heat pump water heaters in Australia and New Zealand. Potential problems in the water heater market include lack of information as well as split incentives, in which there is conflict between the interests of householders and intermediaries such as builders and plumbers. Such market failures can result in sub-optimal purchasing decisions in some instances. The proposal is part of a broader strategy for making the market for hot water appliances more energy efficient, as outlined in the National Strategy on Energy Efficiency. The four options examined in the RIS are:
Published Impact Analyses
Official website for Published Impact Analyses for decisions announced by the Australian Government, Ministerial Forums and National Standard Setting Bodies.
On 25 July 2013, the Minister for Education made the Australian Education Regulation 2013 to prescribe a range of matters relating to Commonwealth financial assistance for schools, including the conditions placed on that financial assistance. The reforms include requirements to prepare implementation plans and school improvement plans, as well as to put in place processes and procedures for enhancing principal and teacher performance and professional development. A Regulation Impact Statement was required to be prepared for final decision on the regulation but was not completed and assessed as adequate by the Office of Best Practice Regulation (OBPR). The OBPR has therefore assessed DEEWR as non-compliant with the Australian Government’s best practice regulation requirements.
Australia’s gas market is experiencing structural change in terms of domestic production, consumption and trade. These changes are being driven by factors including expansion of liquefied natural gas (LNG) export capacity, growth of the east coast coal seam gas (CSG) industry and the expected increase in the use of gas as a low-carbon fuel. The development of large CSG-LNG reserves in Queensland is likely to involve significant expansion in production capacity.
The Australian Government’s new Best Practice Regulation Handbook gives effect to the revised regulatory impact analysis arrangements announced on 5 December 2012. Associated with the Handbook, the OIA has issued a guidance note on best practice consultation. Effective stakeholder consultation is a key element of regulatory impact analysis. A details-stage regulation impact statement is required to provide details of consultation, including the parties with whom consultation has been undertaken, any concerns raised and how these concerns have been reflected in the final proposal. The consultation should give affected stakeholders adequate opportunity to consider the proposal and comment, and should be commensurate with the magnitude of the problem and the size of the potential impact of the proposal.
The Australian Government’s new Best Practice Regulation Handbook gives effect to the revised regulatory impact analysis arrangements announced on 5 December 2012. To coincide with the release of the new Handbook, the OBPR has updated its guidance material on cost-benefit analysis. We’ve issued this guidance note to help agencies looking to conduct cost-benefit analysis. A details-stage regulation impact statement should contain a comprehensive assessment of the expected costs and benefits of each identified option. The level of detail required must be commensurate with the impacts of the proposal. Where the impacts of a proposal are likely to be highly significant, a formal cost-benefit analysis will be required.
The Australian Government announced its response to the Independent Review of the Australian Government’s Regulatory Impact Analysis (RIA) Process in December 2012. As a consequence of this announcement, some changes have been made to the RIA arrangements. The new RIA process applies from July 2013 and is detailed in the revised Best Practice Regulation Handbook. However a transition period will apply in the near term for regulatory proposals already being considered, especially those for which agencies have started to prepare a regulation impact statement (RIS) under the old system. During the transition period, the OBPR will allow for some flexibility regarding the application of the current and new RIA processes.
On 24 July 2013, the Minister for Small Business announced the Australian Government’s response to the Review of the Franchising Code of Conduct. Franchising is a way of doing business, where the franchisor licenses to another business (the franchisee) the right to sell goods or services using the franchisor’s intellectual property and business reputation. The Franchising Code of Conduct regulates the ongoing relationship between franchisors and franchisees, typically to address concerns over the imbalance of power between franchisors and franchisees. The announcement stated the intention to make several changes to the Franchising Code of Conduct, including:
On 11 July 2013 the Australian Securities and Investments Commission (ASIC) released final rules which set out the over-the-counter (OTC) derivatives trade reporting obligations of financial institutions and the regulation of derivative trade repositories. The reporting rules follow a Ministerial determination made by the Treasurer that established the classes of derivatives for which ASIC could make reporting rules.
On 28 June 2013, the Australian Securities and Investments Commission (ASIC) released new guidance on the minimum financial requirements for custodial or depository service providers under the Corporations Act 2001. Providers can be categorised into three groups: custodians; incidental providers; and asset holders for Investor Directed Portfolio Services (IDPS). A custodian is responsible for the holding of property for another person who is the beneficial owner. ‘Incidental providers’ are authorised to provide custodial or depository services but do so in a manner that is ‘incidental’ to other financial services they provide. An IDPS is a scheme for acquiring and holding investments that involves custody arrangements and consolidated reporting to investors.
On 16 July 2013 the Minister for Climate Change announced that the commencement of the Emissions Trading Scheme (ETS) will be brought forward by one year to 1 July 2014. Previously the Government had outlined that the carbon price would be fixed for three years before transitioning to an ETS in 2015. Under an ETS the Government sets the emissions level cap for Australia; polluting entities are able to trade carbon units; and a price for these units prevails in the market. This price can vary over time.