Published Impact Analyses

Under the Australian Government’s best practice regulation requirements, the preparation of a Regulation Impact Statement (RIS) can be triggered by proposed regulation that is likely to have a significant impact on the not-for-profit (NFP) sector. The purpose of this guidance note is to raise awareness and provide guidance to policy officers in dealing with proposals that impact on the NFP sector.

On 21 December 2012, the Minister for Financial Services and Superannuation released for public consultation draft legislation to address perceived gaps in existing credit regulation and enforcement.  In recent investment collapses, high levels of losses to individual consumers were exacerbated in some situations by the use of credit to invest.  Some activity by market participants can distort the risk-return relationship. Misconduct that results in the distortion can take a number of forms, with the effect of these distortions amplified where people have borrowed to invest. The proposed changes would only implement responsible lending obligations on lenders in situations where there is the highest risk of detriment to consumers.

On 21 December 2012, the Minister for Financial Services and Superannuation released for public consultation draft legislation to address perceived gaps in existing credit regulation and enforcement.  A review of the provision of credit to small business has shown that, while the majority of small business lenders and brokers provide a valuable service, some practices exist that result in high financial losses to small business borrowers. The draft legislation seeks to strengthen protections for small business borrowers, particular where the loan in secured against the family home, including by extending the Australian Securities and Investments Commission’s supervision and enforcement ability. While difficult to quantify the costs and benefits, some lenders will incur additional one-off implementation costs.

On 21 December 2012, the Minister for Financial Services and Superannuation released for public consultation draft legislation to address perceived gaps in existing credit regulation and enforcement.  The draft legislation seeks to address avoidance by prohibiting ‘credit-like’ transactions arranged for the purpose of avoiding the National Credit Code.  While the costs have not been fully quantified, the Regulation Impact Statement (RIS) suggests that the proposed changes may expand the number of credit providers which need to comply with industry obligations (and therefore raise compliance costs for these providers) while reducing the availability of credit to some consumers. However, consumers would have better access to the range of protections provided by the National Credit Code.

On 3 January 2013, the Australian Communications and Media Authority (ACMA) announced a number of decisions in relation to the auction for the sale of spectrum in the 700 megahertz (MHz) and 2.5 gigahertz (GHz) bands, including lot configuration for the spectrum auction.  The lot configuration decisions had earlier been published on Comlaw on 19 December 2012 in the respective Radiocommunications Spectrum Marketing Plans for the 700MHz and 2.5GHz bands. The main problem being addressed in the Regulation Impact Statement (RIS) is how to configure the spectrum to promote its efficient allocation and use.

On 21 December 2012, the Minister for Agriculture, Fisheries and Forestry announced changes to the regulation of horticultural exports.  Regulations relating to the export of apples, pears and dried grapes will be removed from 31 January 2013.   The single importer arrangement for the export of citrus to the United States of America, which currently operates, will be replaced on 31 January 2013 by a new Citrus to US Marketing Program (similar to the Citrus to China program), both of which will be phased out on 31 January 2015. The Horticulture Marketing and Research and Development Services Act 2000 (HMRDS Act) and subordinate Regulations and Orders) allow horticultural industries, acting through Horticulture Australia Limited (HAL), to place conditions on horticultural produce exported from Australia.

On 9 February 2012, the Minister for Broadband, Communications and the Digital Economy announced that competition limits would be imposed on the upcoming auction of spectrum in the 700 megahertz (MHz) and the 2.5 gigahertz (GHz) bands (see web post 22 February 2012). This part of the spectrum is seen as very important for the future growth of mobile communications services in Australia. On 14 December 2012, the Minister announced that further consideration had been given to the competition limits to accommodate potential changes in market conditions. The quantum of the competition limits for the 700 MHz band has been amended from 2 x 20 MHz to 2 x 25 MHz. The amended limits will ensure that all of the available 700 MHz spectrum can be acquired in a wider range of scenarios.

The Office of Best Practice Regulation (OBPR) has undertaken a screening process to identify regulation due to be reviewed in 2012 as a result of Recommendation 7.28 of Rethinking Regulation - Report of the Taskforce on Reducing Regulatory Burdens on Business (the Banks Review). The screening process revealed that most regulation was subject to the sunsetting under the Legislative Instruments Act 2003 (LIA).  The majority of the remaining regulation either contained an internal review mechanism or had already been reviewed by some other mechanism, such as broad ranging reviews, statutory reviews or inquiries.  This left only a handful of regulations introduced in 2007 and 2008 that would be subject to a five-yearly review and none of these could be considered priority areas for review by the administering agencies.  The note on the screening process is provided below.

On 20 December 2012, the Assistant Treasurer announced that the Government will introduce legislative amendments to provide consumers with protection against unfair terms in insurance contracts. Currently, remedies for unfair terms in consumer contracts do not apply to insurance contracts. Estimates based on limited, mostly anecdotal, evidence suggest that in a year a small number of consumers (between 75 and 150) may be suffering a small aggregate financial detriment (between $5-10 million) due to unfair terms in insurance contracts. The Regulation Impact Statement (RIS) recommends amending the Insurance Contracts Act 1984 to provide remedies for unfair terms in insurance contracts.

On 20 April 2012 the Prime Minister and the Minister for Mental Health and Ageing announced a package of significant reforms to the way in which aged care is provided and funded in Australia. A Regulation Impact Statement (RIS) was prepared by the Department of Health and Ageing and assessed as adequate by the Office of Best Practice Regulation for the proposed package. One element of this package was a requirement for approved aged care providers to seek pre-approval from the Government of proposed accommodation charges from 1 July 2014.