Published Impact Analyses

Independent Review – Australian Prudential Regulation Authority

On 10 November 2016, the Australian Prudential Regulation Authority (APRA) released its final revised standard on securitisation.

Securitisation involves selling a ‘pool’ of assets (typically loans) to a special purpose vehicle, which then obtains funding for these assets from the capital markets. As with loans and other exposures, Authorised Deposit-taking Institutions (ADIs) that choose to hold exposures to securitisation vehicles must hold regulatory capital against these exposures. However, ADIs may be able to reduce the amount of regulatory capital APRA requires them to hold against securitised loans by removing them from their balance sheets.

Independent Review – Australian Accounting Standards Board

On 9 December 2016, the Australian Accounting Standards Board (AASB) released AASB Standard 1058 Income of Not-for-Profit Entities.

The new Standard, which will come into effect on 30 June 2020, makes two major changes to improve the accuracy of not-for-profits’ reporting of their financial position.

Currently, not-for-profits report revenue as income when it is received and expenses when they are incurred. But some grants or donations have performance obligations attached to them. AASB 1058 will allow not-for-profits to recognise such grants or donations as income when the performance obligation has been fulfilled, and not when the revenue is received.

Regulation Impact Statement – Department of Employment

The Government announced the Youth Employment Package in the 2016-2017 Budget.

The core of the package is a new Youth Jobs PaTH (Prepare – Trial – Hire) programme comprising employability skills training; work experience through an Australian Government supported internship; and a Youth Bonus wage subsidy providing an incentive to employers to hire eligible work ready young people. The Government introduced the Social Security Legislation Amendment (Youth Jobs Path: Prepare, Trial, Hire) Bill 2016 into Parliament in October 2016.

The Department of Employment prepared a Regulation Impact Statement (RIS) for the Youth Employment Package. The OBPR assessed the RIS as compliant and consistent with best practice.

The RIS estimates the average annual regulatory cost saving at $3.7 million per annum. The OBPR has agreed to the regulatory cost saving.

Regulation Impact Statement – Department of Health

On 20 December 2016, the Therapeutic Goods Administration (TGA) within the Department of Health announced that products containing codeine will be available by prescription only. The change will commence on 1 February 2018.

The change in scheduling of products containing codeine from over-the-counter medicines (Schedule 2 and Schedule 3) to prescription medicines (Schedule 4) will mean that people who wish to use painkiller medicines or cough and cold products containing codeine will have to obtain a prescription from their health care provider or use an alternative over-the-counter product. The TGA notes that there are a number of alternative over-the-counter medicines available.

Post-implementation Review – Treasury

In the 2012-13 Budget, the then Treasurer announced a reduction in the inbound duty-free allowance for cigarettes and tobacco from 250 cigarettes or 250 grams of tobacco to 50 cigarettes or 50 grams of other tobacco products, effective from 1 September 2012.

A Regulation Impact Statement was required at the time the decision was made, but exceptional circumstances were granted by the then Prime Minister. Consequently a post-implementation review (PIR) was required.

COAG Decision Regulation Impact Statement

On 17 January 2017, Safe Work Australia announced the majority of state, territory and Commonwealth Ministers responsible for work health and safety supported the implementation of the preferred option in the Decision Regulation Impact Statement (RIS) through model work health and safety legislation.

This Decision RIS is the result of Safe Work Australia’s review of the current toxicological information and overseas trends in the regulation of lead in the workplace. It examines options to reduce the adverse health outcomes caused by exposure to lead in the workplace.

In line with international standards and current Australian research, this Decision RIS presents a preferred option of lowering the blood lead removal levels and maximum permissible airborne concentration of lead to afford greater protection to workers who may be exposed to lead at the workplace.

Regulation Impact Statement for consultation – Department of Infrastructure and Regional Development

On 20 December 2016, the Minister for Urban Infrastructure and the Minister for the Environment and Energy announced proposals to implement new vehicle fuel efficiency standards for light vehicles and higher air pollution standards for cars, trucks and buses.

The proposals have been assessed by the Office of Best Practice Regulation (OBPR) as likely to have substantial impacts on the economy with significant impacts on competition.

Post-Implementation Review – Department of Employment

In February 2013 and March 2013, the then Government announced a number of changes to the Fair Work Act 2009. A Regulation Impact Statement (RIS) was required for the changes, but the then Prime Minister granted an exemption to the Department from the RIS requirements on the basis of exceptional circumstances. As a result, under the Government’s best practice requirements, the Department of Employment was required to complete a Post-Implementation Review (PIR).

A PIR has been prepared for the changes included in the Fair Work Amendment Act 2013 that came into effect on 1 January 2014.

The PIR contains two chapters. The first chapter examines provisions on:

• establishing new rules for consultation about changes to regular rosters or working hours;

Regulation Impact Statement – Department of the Treasury

On 24 November 2016, the Government introduced the Corporations Amendment (Crowd-sourced Funding) Bill 2016. The Bill establishes a regulatory framework to facilitate crowd-sourced funding by small, unlisted public companies. The crowd-sourced funding (CSF) regime includes:

• eligibility requirements for a company to fundraise via CSF, including disclosure requirements for CSF offers;

• obligations of a CSF intermediary in facilitating CSF offers;

• the process for making CSF offers;

• rules relating to defective disclosure as part of a CSF offer;

• investor protection provisions; and

Regulation Impact Statement for consultation – Department of Communications and the Arts

On 12 December 2016, the Department of Communications and the Arts released draft legislation for a package of reforms for the telecommunications industry. One part of the package proposes to implement a funding arrangement, the Regional Broadband Scheme (the Scheme), to provide ongoing funding for NBN Co Ltd’s (nbn’s) fixed wireless and satellite services (the non-commercial services) in regional areas.