Published Impact Analyses

Australian Securities and Investments Commission

The Australian Securities and Investments Commission (ASIC) is remaking its Class Order [CO 03/217] Differential fees, which is scheduled to sunset on 1 April 2017, without significant amendments.

Under equal treatment requirements set out in Section 601FC(1)(d) of the Corporations Act 2001, responsible entities are prohibited from charging different fees to members of the same class. Subject to certain conditions, [CO 03/217] allows a responsible entity to discriminate between registered managed investment scheme members in relation to fees.

COAG Decision Regulation Impact Statement – COAG Disability Reform Council

On 9 December 2016, the Council of Australian Governments (COAG) endorsed a 2 September 2016 decision of the COAG Disability Reform Council to adopt a national quality and safeguarding framework to apply to providers of supports under the National Disability Insurance Scheme (NDIS).

The framework is intended to provide a level of consumer protection for participants in the NDIS and includes:

• an independent national complaints and serious incidents system

• worker screening requirements

• national registration and a Code of Conduct for providers

COAG Decision Regulation Impact Statement – COAG Education Council

In January 2017, the COAG Education Council endorsed changes to the National Quality Framework (NQF) for Early Childhood Education and Care (ECEC) arising from the 2014 National Quality Agenda Review.

The most significant changes proposed are:

• A simplified and more transparent assessment and rating process for all services, which includes a revised National Quality Standard.

• Measures to improve oversight of and support within Family Day Care (FDC) services, which are aimed at increasing the integrity and transparency of FDC delivery and helping to ensure quality outcomes for children.

• Streamlined documentation of assessments or evaluations of school age children in Outside School Hours Care (OSHC).

Implementing the Net Stable Funding Ratio – Regulation Impact Statement – Australian Prudential Regulation Authority

On 20 December 2016, the Australian Prudential Regulation Authority (APRA) released the final revised Prudential Standard APS 210 Liquidity (APS 210) and Prudential Practice Guide APG 210 Liquidity (APG 210) which incorporates, among other things, the Net Stable Funding Ratio (NSFR) requirements for some authorised deposit-taking institutions (ADIs).

The NSFR requires ADIs to fund their activities with more stable sources of funding on an ongoing basis, and thereby promotes greater balance sheet resilience. In particular, the NSFR should lead to reduced reliance on less-stable sources of funding, such as short-term wholesale funding, that proved problematic during the global financial crisis.

The final revised standard APS 210 will commence on 1 January 2018.

COAG Decision Regulation Impact Statement – Safe Work Australia

In October 2016, a majority of Work Health and Safety ministers agreed to progress the development of nationally consistent approaches to four areas within existing explosives regulation. These four areas are the definition of explosives, the licensing framework, notification processes, and the explosives authorisation process.

A Decision Regulation Impact Statement (RIS) was prepared by Safe Work Australia and assessed as adequate by the Office of Best Practice Regulation (OBPR).

Safe Work Australia prepared RISs at the consultation and decision-making stages consistent with the COAG best practice regulation requirements.

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.