Published Impact Analyses

On 7 March 2013, the Office of Best Practice Regulation (OBPR) received correspondence from Senator the Hon Eric Abetz expressing concerns that the Building Code 2013 would have significant impacts on the construction sector and that a Regulation Impact Statement (RIS) should have been prepared. Based on information provided by the Department of Education, Employment and Workplace Relations, OBPR advised that a RIS was not required for the proposal. This assessment was based on information from the department that the new Building Code 2013 was likely to have a minor impact on business as it would merely codify the existing Australian Government Implementation Guidelines for the National Code of Practice for the Construction Industry and it would not impose any new policy or obligations on industry. Further information is included in the attached letter responding to Senator Abetz.

On 11 April 2013, the National Environment Protection Council (NEPC) approved an amendment to the National Environment Protection (Assessment of Site Contamination) Measure (‘the NEPM’). The amendment incorporates updated methodologies for assessing human and ecological risks and site assessment methods in line with advances in Australia and overseas. The NEPM is a risk based framework used by regulators, site assessors, consultants, environmental auditors, landowners, developers and industry to assess whether site contamination requires further investigation or remediation. A statutory review in 2005-06 found that the NEPM may not be effectively protecting health and environment outcomes due to the use of outdated methodologies.

On 26 April 2013, the Minister for Financial Services and Superannuation announced that the Government will strengthen the professional indemnity insurance requirements for Australian Financial Services Licensees (‘Licensees’). These changes were announced as part of the Australian Government’s response to the report, Compensation arrangements for consumers of financial services (‘the St John Report’). Currently, licensees are only required to provide information on the adequacy of their indemnity insurance when applying for a license. Guidance from the Australian Securities and Investments Commission (ASIC) recommends that licensees undertake their own assessment of their indemnity insurance on an ongoing basis to ensure it reflects their business needs, including risk exposure.

On 23 April 2013, the Australian Fisheries Management Authority (AFMA) announced a 2 year continuation of closures in the Southern and Eastern Scalefish and Shark Fishery that have been in place since May 2011. The closures aim to protect Australian Sea Lions, which are listed as vulnerable under the Environmental Protection and Biodiversity Conservation Act 1999. The closures also include two additional areas around Australian Sea Lion colonies recently identified as being at high risk of localised extinction. These closures are in response to commercial gillnet fishing being identified as the main cause of a lack of recovery in populations of Australian Sea Lions in South Australia.

On 11 April 2013 the Council of Australian Governments (COAG) Standing Council on Environment and Water (the Council) released a consultation Regulation Impact Statement (RIS) on the regulation of water market intermediaries. Some stakeholders in the water sector have expressed concerns about the potential for misconduct and inappropriate practices of water market intermediaries to impact on irrigators and other water market participants. For example, there are some concerns about inappropriate use of client funds or conflicts of interest amongst some intermediaries. However, the best available evidence sourced from previous investigations into the sector suggests that any problems relating to intermediary misconduct is limited and isolated.

On 11 April 2013 the Council of Australian Governments (COAG) Standing Council on Environment and Water (the Council) released a Consultation Regulation Impact Statement (RIS) which seeks stakeholder feedback on options to reduce emissions from wood heaters. The Consultation RIS suggests that particulate emissions (small pieces of solid matter) from wood heaters are a significant contributor to ‘ambient’, or outside, levels of particle pollution. Some studies show a strong association between exposure to increased particulate levels and adverse health impacts, including respiratory and cardiovascular effects which can increase morbidity and mortality. Some people with certain pre-existing conditions may be more acutely affected. Owners of wood heaters do not face the full cost resulting from particulate emissions from their heaters.

In October 2012, the National Marine Safety Committee published the National Standard for General Safety Requirements for Vessels, as approved by the Standing Council on Transport and Infrastructure. The standard applies to domestic commercial vessels not required to be in survey (ie not required to undergo regular mandated inspection). These are low-risk operations involving vessels less than 7.5 metres in sheltered waters. The National Standard addresses three main problems associated with the current approach to regulating such vessels. Firstly, it creates national consistency in regulatory requirements, which reduces confusion and costs across states & territories. Secondly, it reduces regulatory complexity as the current requirements rely on varying layers of regulation.

On 17 April 2013 the Council of Australian Governments (COAG) Standing Council on Environment and Water (the Council) released a Consultation Regulation Impact Statement (RIS) on the management of chemical environmental risks. The Consultation RIS suggests that the regulatory framework surrounding the management of chemical environmental risks in Australia is incomplete and needs improvement to address unmanaged risks to the environment. In some circumstances, a realisation of these risks could result in loss of ecosystem function, contamination of water or soil, effects on human health, loss of amenity and costly remediation. In general, responsibilities for regulation are shared between jurisdictions. The Commonwealth undertakes most hazard and risk assessment at a national scale and the states and territories typically deal with on-ground risk management and control of use.

On 21 March 2013, the Minister for Climate Change, Industry and Innovation announced the Australian Government’s response to the Climate Change Authority (CCA) review of the Renewable Energy Target (RET) scheme. The CCA is required by statute to review the RET scheme every two years having regard to a number of broad principles including economic efficiency, environmental effectiveness, equity and consistency. The final report from the first such review was released on 19 December 2012. The review considered the current operating environment for the RET scheme, which now includes the Carbon Pricing Mechanism. The review found that the RET scheme is complementary to the carbon price as a transitional measure while a carbon price is being established.

On 28 July 2009 the Minister for Finance and Deregulation announced reforms to the Australian Government Procurement Statement which included the requirement for all Government contractors in the textile, clothing and footwear industry to be accredited or be seeking accreditation with the Homeworker’s Code of Practice. A Regulation Impact Statement was not prepared for the joint proposal by the Department of Education, Employment and Workplace Relations and the Department of Finance and Deregulation for that decision. Consequently, a Post-implementation Review (PIR) was required to be undertaken in line with the Government’s best practice regulation process.