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Impact analysis and its importance

Impact Analysis 101

Impact analysis is not just a Government requirement, it is a tool for developing well-designed policy and making good policy decisions.

About impact analysis

Every time a new policy proposal is brought forward to the Prime Minister, to Cabinet, or another decision making forum, the Government expects it to be backed by solid evidence. This includes assessing how the change will impact businesses, individuals and society.

This is established through the impact analysis process; a crucial part of best practice policy making, and a Government requirement.

Importance of impact analysis

Impact analysis ensures the public service offers up policy solutions that:

  • best address the problem
  • maximise the benefits
  • reduce any unintended costs, and
  • ensure the policy setting are right the first time around.

Impact analysis process

Australia's impact analysis framework focuses on seven core questions fundamental to good policy. You can check these out in Seven RIS Questions.

The impact analysis process requires an explanation of the problem a policy will address, who will be impacted and how, and why Government action is needed.

Contact us for more information

Via email: helpdesk-OIA@pmc.gov.au
By phone: 02 6271 6270

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