The draft Regulator Performance Framework:
overview and submissions process
The deregulation agenda
The Government has committed to reducing the cost of unnecessary or inefficient regulation imposed
on individuals, business and community organisations by at least $1 billion a year. Regulation will only
be imposed where absolutely necessary and will no longer be the default position in dealing with
public policy issues.
The framework
The Government recognises the important role that regulators play in managing risk and protecting the
interests of the community. However, the way that regulators administer regulation and engage with
regulated entities can impose unnecessary costs that impede business growth, stifle job creation and
make interactions with government more difficult for community organisations and individuals. These
costs may negatively impact the viability of domestic businesses (especially those exposed to
overseas competition) and reduce community satisfaction and confidence about their interactions with
government.
This is why the Government has committed to develop a Framework to measure the performance of
regulators. Measuring and publicly reporting performance will give business, the community and
individuals confidence that regulators effectively and flexibly manage risk.
The proposed Framework has been developed following consultation with a range of stakeholders on
the Productivity Commissions’ guidance for auditing the performance of regulators in its Regulator
Audit Framework report (2014). The Framework consists of six outcomes-based key performance
indicators of best practice regulator performance and administration. Achievement against the
indicators will be assessed by using the measures of good regulatory performance in the Framework,
with performance demonstrated by externally validated output or activity-based evidence.
Commonwealth regulators that administer, monitor or enforce regulation will be required to implement
the Framework.
The objective of the Framework is to: improve regulator performance and engagement with business,
the community and individuals; reduce compliance costs associated with the way regulation is
administrated; and allow improved flexibility for regulators to implement risk-based approaches.
Successful implementation will assist in driving cultural change within regulatory agencies to ensure
they minimise the regulatory burden imposed on regulated entities in the course of fulfilling their
objectives.
To achieve the Government’s objectives, the Framework comprises:

outcomes-based key performance indicators (KPIs) to articulate the Government’s
overarching expectations of regulator performance, namely:
1. regulators facilitate efficient operation of regulated entities;
2. communication with those regulated is clear, targeted and effective;
3. actions undertaken by regulators are proportionate to the risk being managed;
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4. inspection and monitoring approaches are streamlined and coordinated;
5. regulators are open and transparent in their dealings with regulated entities; and
6. regulators actively contribute to the continuous improvement of regulatory frameworks.

measures of good regulatory performance to be used by all regulators to assess their
achievement of the KPIs, complemented with relevant output or activity-based evidence specific to
the regulators’ circumstances;

a process for annual externally validated self-assessment for all regulators against the
Framework including, if applicable, certification from the regulator’s Accountable Authority
(typically the Chief Executive Officer or Board) under the Public Governance, Performance and
Accountability Act 2013 (PGPA Act);

a process for targeted external review every three years for a selected set of regulators, with
Ministers agreeing to the proposed evidence to assess performance, and the evidence metrics
published as part of the review; and

a process for annual external reviews for a small number of major regulators, with the results
published.
The process for reviews is highlighted in Figure 1 below. This approach provides flexibility to tailor the
assessment to the size and responsibilities of the regulator in a cost effective way.
FIGURE 1. REVIEW FREQUENCY, TYPE AND TARGET
Regulators will be required to publish a report on the outcomes of each annual self-assessment and
any external reviews of regulator performance. These reports will identify the extent to which the
regulator is achieving the performance indicators in the Framework and highlight areas for
improvement for the regulator.
The reports will also be published to ensure transparency and accountability of regulators.
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Submissions process
The public submission process is being held to enable all interested parties to provide their views.
Further information on the submission process, including the link to make a submission can be found
at the Cutting Red Tape website.
The focus questions below can also be used to guide your written submission.
Submissions will be accepted until Monday 22 September 2014. Submissions received after this time
may not be taken into account in the development of the final Framework.
Focus questions
While all comments are welcomed, views are sought in particular on the following areas:
The Performance Framework for Regulators


Will the Framework achieve the overall objective to encourage regulators to undertake their
functions with minimum impact?
Are there any elements of the Framework that are unclear or require further explanation?
Key performance indicators and evidence

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Do the six KPIs clearly articulate community and business expectations of regulatory
performance?
Are the six KPIs in the draft Framework comprehensive?
Do the examples of output/activity based evidence match the relevant KPI?
Are there any additional examples of evidence that should be included (that are applicable to a
range of regulators)?
The review process

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Does the proposed review process meet your expectations of a robust assessment of regulator
performance?
What constitutes a major regulator?
What criteria should be used to select regulators for the targeted external reviews (once every
three years)?
Does the proposed scrutiny around self-assessments do enough to ensure that regulators will be
accountable for their performance?
Reporting requirements

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Will the proposed reporting requirements improve regulator transparency and accountability?
How do the Framework’s reporting requirements match or complement existing reporting
requirements for regulators?
Does the Framework sufficiently integrate with the Public Governance, Performance and
Accountability Act 2013 requirements for non-financial performance assessment and reporting
(currently under development)? See Public Management Reform Agenda at the Department of
Finance website for further information.
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Contact details
If you have any questions about the consultation process, please do not hesitate to contact the
Department of the Prime Minister and Cabinet at officeofderegulation@pmc.gov.au.
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