The Australian Government Guide to Policy Impact Analysis describes some special cases in the Impact Analysis (IA) process, one of which is that an IA is not required where a review or other similar analysis has been prepared through a process equivalent to that required in the Guide and certified by Secretary, Deputy Secretary, or Chief Executive as having addressed all seven Impact Analysis questions. This approach – known as an Impact Analysis Equivalent (IAE) – aims to remove duplication between comprehensive review processes and Impact Analyses.
The process is a two stage process:
- Seek OIA’s agreement to certify relevant Review as an IAE. Agencies may certify a document as an IAE only with prior agreement of the OIA. The OIA may agree to the use of an IAE if certain criteria are met. Where the criteria are not met, the OIA may request additional analysis or advise that the Review is not suitable to be certified as an IAE.
- Self-assess whether the Review has followed a similar process to that required for Impact Analysis. This self-assessment is done by way of a Secretary, Deputy Secretary, or Chief Executive certifying in writing to the OIA that the Review has met IAE requirements. All regulatory costs must be quantified and either presented in the independent review or the certification letter. The OIA does not assess the quality of analysis contained in the review or additional analysis, but will assess whether the problem and option(s) analysed in the IAE are relevant to the proposal, the review addresses all 7 IA questions and whether the IAE or certification letter identifies regulatory costs.
Agencies are encouraged to consult the OIA when preparing review terms of reference to ensure that each of the seven IA elements will be addressed.
Further information on this process can be found in the Impact Analysis Equivalent guidance note.