Parliamentary scrutiny of proposals, including their consequences and trade-offs, is an important contributor to better policy outcomes. Australia’s Impact Analysis (IA) framework is designed to support this process. This policy brief outlines what an IA is, the standard process for an IA, determining if it's needed and the Office of Impact Analysis quality assessment. 

Decisions about public policy are complex and always involve trade-offs. When processes are followed, the framework offers a structured lens through which parliamentarians can assess the merits and pitfalls of policy initiatives, making it a valuable – if underutilised – tool to enhance legislative rigour. Policies implemented without thorough analysis can lead to unintended and sometimes harmful outcomes. Evidence-based approaches help anticipate these risks and mitigate them. 

The brief concludes that the information contained in IAs can empower parliamentarians to make informed decisions about whether a proposed regulation is evidence-based, transparent and likely to deliver real benefits.

Key points

• In Australia, the IA framework addresses seven specific questions, designed to assist policymakers in considering the potential impacts of policy options.
• Only major policy changes likely to have significant impacts require an IA. Between July 2022 and June 2024 this was less than 3% of the preliminary assessments conducted by the regulatory oversight body.
• Exemptions to the standard IA process include Prime Minister’s exemptions or ‘Impact analysis equivalents'.