Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Hansard source

The answer to the honourable senator's question is as follows:

(1) (2) and (3) The Government's Deregulation Agenda reflects the Organisation for Economic Cooperation and Development's (OECD) Guiding Principles for Regulatory Quality and Performance (OECD 2005) which require governments (inter alia) to "design economic regulation in all sectors to stimulate competition and efficiency, and eliminate them except where clear evidence demonstrates that they are the best way to serve broad public interests."

The focus of effort of OECD members, including Australia, is on ensuring the regulation is fit for purpose, is developed in consultation with stakeholders and does not impose unnecessary compliance and administrative cost burdens on business and the not-for-profit sector. Measures of costs are not of themselves, therefore, a measure of the efficiency of regulation which necessarily strives to deliver a net community benefit.

All Commonwealth decision-makers are required to adhere to the provisions of the Government's Best Practice Regulation Handbook 2010 which requires that they undertake regulation impact analysis for all regulatory proposals which would have an impact on business or the not-for-profit sector which is anything other than minor or machinery in nature.

The Australian Government's approach to regulatory management features a high degree of transparency, with regular reporting concerning compliance with the requirements for regulation impact assessment, progress against reforms progressed by the Council of Australian Government's Seamless National Economy national partnership agreement and regular reviews of Commonwealth regulatory frameworks by the Productivity Commission as part of its "Regulatory Burdens" series of reviews.

Successive Australian governments have required decision-makers in choosing to regulate, to determine where the balance between costs and benefits of individual regulatory proposals should lie, consistent with their statutory responsibilities. In its review of regulatory reform in Australia ("Towards a Seamless National Economy: OECD, 2010) the OECD concluded that "Australia is one of the front-running countries in the OECD in terms of its best practice."