Published Impact Analyses

On 11 October 2013, ABARES published a Consultation Regulation Impact Statement (RIS) on potential changes to improve the National Livestock Identification System (NLIS) for sheep and goats. The consultation RIS notes that NLIS for sheep and goats currently does not enable tracing of animals to the standards required under the National Livestock Traceability Performance Standards. Accurate and timely livestock traceability is important for managing biosecurity, food safety, and animal welfare risks. The consultation RIS seeks feedback on the identified options for improving the NLIS, the proposed method for economic analysis and other aspects of the document.

On 4 September 2013, the Australian Communications and Media Authority (ACMA) tabled (see also here) legislation altering the formula behind the annual numbering charge (ANC) – a per number levy which telecommunications firms that hold phone numbers are required to pay. The changes exempt four types of short-digit access codes from the ANC. The Regulation Impact Statement (RIS) notes that the previous charges levied on the specific short-digit access codes acted as a potential barrier to entry. Exempting these access codes from the ANC may allow greater opportunities for new and smaller firms to enter and fully participate in the telecommunications market, which is likely to benefit consumers.

On 6 September 2013, the Private Health Insurance Administration Council (PHIAC) made changes to the Capital Adequacy and Solvency Standards for private health insurers. The Capital Adequacy and Solvency Standards ensure that as far as practicable, the financial position of a health benefits fund conducted by a private health insurer is such that the private health insurer will be able to meet its liabilities, and carry enough capital for the conduct of the fund in the accordance with the Private Health Insurance Act 2007 (Cth), and in the interests of the policy holders of the health benefits fund.

On 18 September 2013, the Australian Fisheries Management Authority (AFMA) registered a continuation of an area closure, aimed at protecting dolphins in the Southern and Eastern Scalefish and Shark Fishery. The closure prohibits fishing by gillnets, in an area of the fishery off the South Australian coast, for a period of one year. Other measures will also be put in place, most notably 100 per cent monitoring requirements in areas adjacent to the closure, and allowing the use the hook fishing. The proposal has been assessed by the Office of Best Practice Regulation (OBPR) as likely to have relatively minor impacts on the broader economy and has therefore given this a ‘D’ rating (on a scale of A to D) in relation to the level of analysis required. The Regulation Impact Statement (RIS) looked at three options, and recommended the regulatory option.

On 18 September 2013, the Government issued its Administrative Arrangement Orders (AAOs), which took effect immediately. As part of the AAOs, portfolio responsibility for deregulation matters and the OBPR moved from the Department of Finance and Deregulation to the Department of the Prime Minister and Cabinet. The OBPR in due course will provide information on our new email and website addresses. In the meantime, please continue to use http://ris.finance.gov.au.

On 13 August 2013, the former Minister for Road Safety tabled new legislation requiring the installation of ABS in new heavy commercial vehicles. ABS is a technology that prevents wheels from locking when a vehicle is overbraked and increases the safety of a vehicle. It is an advanced technology that is already used by a significant portion of the commercial heavy vehicle fleet. The Regulation Impact Statement (RIS) notes the considerable cost of road crashes on Australian society. It considers four options: the status quo; deleting the relevant Australian Design Rules; non-regulatory options; and the preferred option of mandating ABS installation. Overall, the RIS concludes that, due to the advanced nature of the technology, there is effectively a small positive net benefit to the community for each additional heavy vehicle fitted with ABS even as the voluntary fitment rate approaches 100 per cent.

On 1 August 2013, the Treasurer announced that the tobacco excise will be increased by 50 per cent over a four year period – a 12.5 per cent increase each year. The options-stage Regulation Impact Statement (RIS) prepared by Treasury notes that smoking tobacco may provide a number of benefits to consumers, including immediate pleasure, control of stress, improved self image and avoidance of withdrawal symptoms. However, it is also considered that there are costs to smoking tobacco which include: serious illness, such as cancer and premature death; deferral of expenditure away from necessities by lower income households; and diversion of health related resources, such as hospital beds. It is considered that social and economic costs of tobacco use are $31.5 billion each year.

On 2 August 2013, the Treasurer and Minister for Finance and Deregulation announced the establishment of a Financial Stability Fund. The Fund collects money through imposing a levy on Authorised Deposit-Taking Institutions (ADIs), which is to be used to meet the costs of a failure of an ADI. The levy will start on 1 January, 2016 and will be set at 0.05 per cent on deposits of up to $250,000. Under the Financial Claims Scheme (FCS) the Australian Government is required to fund payments to protected depositors (up to a cap of $250,000 per depositor per ADI) in the event that an ADI is placed into liquidation. However, the options-stage Regulation Impact Statement (RIS) prepared by Treasury notes that the Australian Government does not have a dedicated and readily accessible pool of assets that could be used to fund resolution activities.

On 6 August 2013, the Northern Territory Government announced that it had obtained approval from relevant Ministers for a permanent exemption from requirements under the Mutual Recognition Agreement for its Container Deposit Scheme. The Mutual Recognition Agreement allows goods that can be lawfully sold in one jurisdiction to be sold in other jurisdictions without having to meet additional requirements. This prevents state and territory governments, for example, from unilaterally imposing requirements (such as labelling requirements) on suppliers to facilitate a deposit refund scheme for containers of beverages sold within their jurisdiction. The Decision Regulation Impact Statement (RIS) examines four options for addressing the identified problem of low rates of recovery and reuse of packaging waste, particularly beverage containers, in the Northern Territory:

On 9 August 2013, the Australian Communications and Media Authority (ACMA) announced that the Department of Broadband, Communications and the Digital Economy (DBCDE) made changes to the Radiocommunications Regulations 1993 to restrict the supply of mobile repeaters. A cellular mobile repeater is a wireless radiocommunications device that repeats mobile network signals. It can receive, amplify and retransmit these signals in order to improve mobile phone reception within a small area. Repeaters can be used to extend signal coverage into areas where coverage may not exist or is too low and their unauthorised use has the potential to cause interference. The new regulation prohibits the supply of cellular mobile repeaters to persons other than a licensee or a person authorised in writing by the licensee.