The Treasury contributes to the Government's Regulatory Reform Agenda by embracing a modern, coordinated and flexible approach to regulatory reform, designed to directly enhance innovation, competitiveness and productivity. Treasury makes this contribution in three key ways:
- Treasury improves the quality of existing regulation. We achieve this through the systematic review of industry specific regulatory frameworks through the Regulatory System Renewal programme.
- In the 2016-17 Budget the Government announced that Treasury will meet its responsibilities under the strengthened Regulatory Reform Agenda by committing to a rolling series of reviews of regulatory frameworks to ensure that:
- the original regulatory objectives are still sound and the regulation is still required;
- the regulation achieves those objectives in the most efficient and effective way;
- there are no barriers to competition or other unintended consequences, and the expected balance of cost to benefit came to pass (to inform future action); and
- the framework of law and subordinate regulatory instruments provides the flexibility to accommodate new business models and technologies as they emerge.
- The initial focus will be on issues identified in the Competition Policy Review, the Financial System Inquiry and the tax reform process.
- Treasury carefully assesses the effects of new regulation.
- Treasury ensures that all major regulatory decisions are informed by a regulation impact statement that sets out the costs and benefits. Regulatory costs are quantified using the Government's Regulatory Burden Measurement framework.
- Treasury works to improve the interaction of its portfolio regulators and regulated populations. We achieve this by facilitating compliance within the portfolio with the Regulator Performance Framework.
- The Regulator Performance Framework commenced on 1 July 2015. It encourages regulators to minimise the regulatory burden created through their administration of regulation.
- Nine Treasury portfolio agencies developed performance metrics in consultation with key stakeholders. The metrics were approved by Ministers in June 2015 for use by regulators in annual self-assessments of their performance against the Framework. The first self-assessments under the Framework were published in late 2016.
As part of its Regulatory Reform Agenda, the Government committed that each portfolio would conduct a stocktake of existing Commonwealth regulation, as at October 2013, to be used as a tool to assist in identifying and prioritising areas for future reform. The Treasury portfolio's Stocktake of Regulation report sets out the process used to count and cost regulations and the final estimate of the annual cost of complying with regulation in the portfolio.
Further information on the progress of the Government's regulatory reform agenda, including information on the regulatory reform activities of other portfolios, is available on the Cutting Red Tape website.