This guide explains the Victorian Government's approach and requirements for impact analysis. It has been designed to be used when developing policy proposals and regulatory impact assessments. The guide outlines regulatory best practice principles and sets out the seven key questions to be answered when developing an impact assessment.

The Guide explains the seven key questions that must be answered in an impact assessment:

1. Why is the Government considering action? (problem analysis)
2. Which outcomes is the Government aiming to achieve? (objectives for action)
3. What are the possible different courses of action that could be taken? (identify feasible options)
4. What are the expected impacts (benefits and costs) of options and what is the preferred option? (impact analysis)
5. What are the characteristics of the preferred option, including small business and competition impacts? (summarise the preferred option)
6. How will the preferred option be put into place? (implementation plan)
7. When (and how) will the Government evaluate the effectiveness of the preferred option in meeting the objectives? (evaluation strategy)

In addition, an impact assessment must include the views of stakeholders consulted to date and how future consultation will be undertaken.