This policy sets out the regulatory impact analysis (RIA) framework which provides a systematic approach to investigate and analyse the nature of a policy problem, considers whether there is a case for government action, identifies feasible options to address the problem, and analyses the pros and cons of each option. The framework also considers how effectively a regulation is implemented.

There are five key steps under the policy:

• Step 1 – Advise the Office of Best Practice Regulation (OBPR): An agency must notify the OBPR when a regulatory solution has first been identified as a viable option to address a policy issue under consideration. For proposals likely to require RIA, basic information (as noted in section 1.3 of the Policy) should be provided to the OBPR with the notification.
• Step 2 – Prepare an Impact Analysis Statement (IAS): An IAS is required for all regulatory proposals, with the level of analysis, degree of quantification of impacts and extent of consultation undertaken to vary depending on the regulatory proposal.
• Step 3 – IAS approval: An IAS must be approved and signed by the Minister and Director-General.
• Step 4 – Undertake formal consultation process (for significant proposals only): Proposals with significant impacts require a Full IAS consisting of a Consultation IAS and a Decision IAS.
• Step 5 – Publish the IAS: All IASs must be published on the departmental website and a copy provided to the OBPR for its records following final approval of the regulatory proposal by the relevant decision-making body (such as Cabinet or Governor-in-Council). IASs should be maintained on the departmental website.