Premier & Cabinet

Type:
Premier's Memorandum
Identifier:
M2008-05
Status:
Archived

M2008-05 Guide To Better Regulation

Description

This Memorandum has superseded Memorandum No. 2006-17. Superseded by M2009-20

Detailed Outline

The NSW Government has released its Guide to Better Regulation, which is available on the Better Regulation Office’s website at www.betterregulation.nsw.gov.au.

This Memorandum explains arrangements for best practice regulation making including how to comply with the requirements in the Guide to Better Regulation and for Regulatory Impact Statements under the Subordinate Legislation Act 1989. It replaces the requirements set out in Premier’s Memorandum 2006-17 and Policy Statement ‘Final Government Response to IPART’s Investigation into the Burden of Regulation and Improving Regulatory Efficiency: Recommendations 1 – 16’ issued on 13 February 2007.

The Guide to Better Regulation
The Guide is a key document to support the delivery of State Plan Priority P3: Cutting Red Tape. It has been produced to help agencies apply the seven better regulation principles to avoid the creation of red tape in new regulatory proposals and to reduce existing red tape as legislation is reviewed. It also provides information about the roles of the Minister for Regulatory Reform and the Better Regulation Office.

The Guide to Better Regulation reinforces many aspects of regulatory development that are already practised by NSW Government agencies. However, some new concepts and processes have been introduced to improve regulatory development.

What’s New?
Applying the Better Regulation Principles
All new and amended regulation (Bills, Regulations and Statutory Instruments) must demonstrate compliance with the better regulation principles. If the Minister for Regulatory Reform has concerns about a regulatory proposal, the Minister may ask the Premier to defer consideration of the regulatory proposal until the concern is resolved.

Assessing the impacts of regulatory proposals
The Guide to Better Regulation emphasises the need to understand the impacts of a regulatory proposal. This can be achieved by quantitative and qualitative analysis, as well as consultation with stakeholders.

New and amended regulations must minimise the costs of compliance for business and administration costs for government. For significant proposals, a Better Regulation Statement must be prepared which identifies and justifies compliance and administrative costs and shows action which has been taken to minimise those costs.

Planning for implementation, compliance, enforcement and monitoring must be done as part of regulatory development so it informs regulatory design and does not impose unnecessary compliance costs.

Consultation
Earlier consultation is required to assist the development of regulatory proposals and to help government thoroughly understand their impact. The Guide includes a new consultation policy for regulatory proposals.

Regular Review
Regular review is required so regulation remains relevant, continues to meet its policy objectives and does not impose unnecessary regulatory burdens as circumstances change.

Timing
The requirements in the Guide to Better Regulation will apply from 1 June 2008.

A transitional period will apply for proposals submitted between 1 June and 30 June 2008. If a proposal to be submitted in the transitional period is so far advanced that it will not be possible for an agency to apply all the requirements of the Guide, the agency may contact the Better Regulation Office to determine the best way to demonstrate application of the better regulation principles.

What is Required?
Better Regulation Statements
A Better Regulation Statement will be required for “significant” new and amending Bills and Regulations and must be certified by the Minister for Regulatory Reform.

The purpose of a Better Regulation Statement is to provide Portfolio Ministers, the Premier and Cabinet, with sufficient information to enable them to make an informed decision about whether to approve the proposal. It should be a succinct document so it can be readily assessed by decision makers.

The Better Regulation Statement should be submitted with the relevant Cabinet Minute for consideration by Cabinet or submitted with the Executive Council papers lodged with Cabinet Secretariat. The Statement will then be reviewed by the Better Regulation Office. The Portfolio Minister is responsible for determining whether a Bill or a Regulation is significant. This is discussed further in the Guide to Better Regulation.

Better Regulation Statements will not be required for certain types of legislation such as police powers and regulation relating to the public service. For a description of legislation that is exempt, refer to Section 2 of the Guide to Better Regulation.
Better Regulation Statements will also not be required for proposals that implement decisions taken through external processes (such as intergovernmental harmonisation processes) where those processes demonstrate the elements of good quality regulatory development (including impact assessment and consultation).

Publication
It is expected that Better Regulation Statements will be made available to the public after a Bill is introduced into Parliament or after a Regulation is published in the Gazette, unless the Government determines otherwise. If a Minister wishes to submit that a Better Regulation Statement should not be made public, the Minister will need to provide reasons for this, which should be set out in the Cabinet Minute or letter to the Minister for Regulatory Reform.

Applying the better regulation principles for non-significant regulatory proposals
For non-significant proposals, Portfolio Ministers will need to demonstrate that the better regulation principles have been applied. Where a proposal is going to Cabinet, the principles should be addressed in the Cabinet Minute. For Regulations or other Statutory Instruments, the principles should be addressed in a letter to the Minister for Regulatory Reform, submitted with the Executive Council Minute.

Relationship with the Subordinate Legislation Act
The Subordinate Legislation Act continues to require the preparation of a regulatory impact statement for all new or remade statutory rules in NSW.

Where new regulations are significant, the regulatory impact statement should address the better regulation principles as well as be consistent with the requirements under the Subordinate Legislation Act. In these cases the regulatory impact statement will replace the need for a separate Better Regulation Statement. The final Regulatory Impact Statement should be submitted to the Minister for Regulatory Reform once consultation is complete and before the Government makes a decision on the regulatory proposal. Agencies must also ensure the other requirements under Section 5 of the Subordinate Legislation Act and Premier’s Memorandum 2008-01 are met.

Further Information
The Better Regulation Office is available to provide agencies with assistance and advice. Agencies working on significant regulatory proposals should consider approaching the Better Regulation Office early in the development process to prevent delays in gaining approval. The Better Regulation Office’s details are below.

www.betterregulation.nsw.gov.au
GPO Box 5341, SYDNEY NSW 2000
[email protected]

Morris Iemma
Premier

Overview

Compliance

Not Mandatory

AR Details

Date Issued
Apr 2, 2008
Review Date
Apr 2, 2018
Replaces
Replaced By

Contacts

Contact
Contact us
Phone
02 9228 5555
Publishing Entity
Department of Premier and Cabinet
Issuing Entity
Department of Premier and Cabinet