Better Regulation Requirements

The better regulation requirements are mandated for all NSW Government agencies under Premier’s Memorandum 2008-05 Guide to Better Regulation.

All new and amending regulatory proposals submitted to Cabinet or the Executive Council with limited exceptions must demonstrate application of the seven better regulation principles.

Principle 1: The need for government action should be established

Principle 2: The objective of government action should be clear

Principle 3: The impact of government action should be properly understood by considering the costs and benefits of a range of options, including non-regulatory options

Principle 4: Government action should be effective and proportional

Principle 5: Consultation with business and the community should inform regulatory development

Principle 6: The simplification, repeal, reform or consolidation of existing regulation should be considered

Principle 7: Regulation should be periodically reviewed, and if necessary reformed to ensure its continued efficiency and effectiveness

How to demonstrate application of the principles

For significant new and amending proposals, a Better Regulation Statement is required and must be submitted with the Cabinet Minute or Executive Council Minute. A Regulatory Impact Statement prepared under the Subordinate Legislation Act 1989 may be accepted in lieu of a Better Regulation Statement.

For non-significant proposals, Portfolio Ministers must demonstrate that the better regulation principles have been applied in a Cabinet Minute or in a letter to the Minister for Regulatory Reform submitted with an Executive Council Minute.

The Guide to Better Regulation and Premier’s Memorandum 2008-05 Guide to Better Regulation provide detailed guidance on how to meet the requirements.  The Better Regulation Office has developed other guidance tools to assist agencies to meet the better regulation requirements.

Exceptions

The better regulation requirements do not apply to regulations:

• relating to police powers, general criminal laws, the administration of justice (such as rules of court and sentencing legislation), electoral rules, and the management of the public sector
• that are excluded instruments under Schedule 4 of the Subordinate Legislation Act 1989

There is no requirement to demonstrate application of the principles in a letter to the Minister for Regulatory Reform or a Better Regulation Statement when seeking approval for these types of proposals.

Agencies should contact the Better Regulation Office about arrangements for significant proposals that have been assessed through national processes or independent bodies (such as the Independent Pricing and Regulatory Tribunal or the Productivity Commission), and where good regulatory development practices, including impact assessment and consultation, have been followed. A Better Regulation Statement may not be required.