The 7 Impact Analysis questions

Policy problem: what is the policy problem and what data are available?

• Clearly identify and define the problem you are trying to solve.
• Identify available data and limitations.

Policy objective: what are the policy objectives, why is government intervention needed to achieve them, and how will success be measured?

• Establish the policy rationale for government to intervene.
• Clearly identify the policy objectives and intended outcomes.

Policy options: what policy options are being considered?

• Identify genuine and viable alternative policy options, including the status quo and at least one non-regulatory alternative policy option (unless it can be demonstrated that a non-regulatory option is not viable).

Net benefit: what is the likely net benefit of the option?

• Provide an estimate of the net benefit of each policy option, including an assessment of the regulatory burden consistent with the Regulatory Burden Measurement Framework. Where the benefits and costs cannot be quantified, provide qualitative analysis of impacts.
• Identify who is likely to be affected by each policy option. Assess the economic, competition, social, environmental or other impacts and how those impacts are likely to be distributed.

Consultation: what consultation was undertaken and how was feedback incorporated into the policy design?

• Explain the purpose and objectives of consultation.
• Summarise stakeholder feedback and explain where the policy option(s) have been modified due to it.

Implementation: what is the best policy option and how will it be implemented?

• Identify the most appropriate policy option to achieve the policy objectives and provide the reason. Summarise supporting analysis and any caveats or qualifications and assumptions.
• Explain how this policy option will be implemented.

Evaluation: how will the policy be monitored and evaluated?

• Describe any monitoring and evaluation activities planned.