The Impact Analysis (IA) framework aims to support informed decision-making by government through high quality policy advice. The Office of Impact Analysis (OIA), a branch within the Department of the Prime Minister and Cabinet (PM&C), is responsible for the administration of the IA framework. 

This audit provides assurance about whether the PM&C is effectively administering the IA framework to achieve the IA framework’s objective of enabling well‐informed and transparent Australian Government decision‐making.

IAs must be prepared for certain policy proposals. The OIA determines which policy proposals require an IA and assesses the quality of IAs. Between July 2022 and June 2024, the OIA conducted around 3,800 preliminary assessments to determine if an IA was required.

The audit made four recommendations to the PM&C relating to independence of the office; stakeholder engagement planning; guidance for staff about exercising and documenting judgements; and IA framework evaluation planning. The PM&C has agreed to the recommendations.

Key findings

• The PM&C's administration of the IA framework is largely effective.
• The PM&C's governance arrangements for the IA framework are largely fit for purpose.
• The IA framework is implemented largely effectively.
• The PM&C has been a largely effective steward of the IA framework.