Better Regulation Victoria (BRV) provides advice and guidance for departmental and agency staff preparing regulatory impact assessments, including Regulatory Impact Statements (RISs) for statutory rules and legislative instruments and Legislative Impact Assessments (LIAs) for Bills.
Our staff are experts in the preparation and assessment of impact analysis. We offer clear, simple and practical advice on the Victorian Government’s requirements.
Victorian Guide to Regulation
The Victorian Guide to Regulation (the Guide) explains the Government's approach and requirements for impact analysis. The current edition was released in November 2016.
The seven key questions
The Guide explains seven key questions that must be answered in an impact assessment:
- Why is the Government considering action? (problem analysis)
- Which outcomes is the Government aiming to achieve? (objectives for action)
- What are the possible different courses of action that could be taken? (identify feasible options)
- What are the expected impacts (benefits and costs) of options and what is the preferred option? (impact analysis)
- What are the characteristics of the preferred option, including small business and competition impacts? (summarise the preferred option)
- How will the preferred option be put into place? (implementation plan)
- 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.
Contents of an effective impact assessment
To effectively answer these questions, BRV suggests in most cases an effective impact assessment should include the following sections:
Additional BRV guidance
BRV has also prepared further guidance to assist Government departments and agencies preparing their regulatory impact assessments including RISs and LIAs.
Toolkit: Requirements and Processes for Making Subordinate Legislation
Hints and tips on preparing a Regulatory Impact Statement (RIS) or a Legislative Impact Assessment (LIA)
Hints and tips for Preparing a Regulatory Impact Statement for sunsetting regulations
Guidance Note - Suggested Value of a Statistical Life in RISs and LIAs
The Value of a Statistical Life (VSL) method is sometimes used to estimate the value of the lives that might be saved by a policy intervention, especially in health or safety contexts. This guidance note provides advice for using the VSL method in an impact analysis.
Guidance Note - Multi-Criteria Analysis (MCA)
This guidance note explains how to use MCA as a decision tool in impact analysis.
Other agencies have prepared advice on preparing or analysing regulation, which may be useful.
Smart Regulation: Grappling with Risk
The former Victorian Competition and Efficiency Commission (VCEC) published this guidance on prioritising regulatory effort through risk-based approaches.
Notes for Guidance on the preparation of Statutory Rules
Penalty and fee units
Scrutiny of Acts and Regulations Committee
The Scrutiny of Acts and Regulations Committee of the Victorian Parliament publishes a range of practice notes and checklists, as well as an Annual Review of Victorian regulations.
Reviewed 24 October 2019