Press Release - Government Response to the Report of the Taskforce on Reducing the Regulatory Burdens on Business [07/04/2006]
NO.019
JOINT PRESS RELEASE
Treasurer
Prime Minister
GOVERNMENT RESPONSE TO THE REPORT OF THE TASKFORCE ON REDUCING THE REGULATORY
BURDENS ON BUSINESS
The Australian Government is announcing immediate actions to address a number
of the recommendations of the Report of the Taskforce on Reducing the Regulatory
Burdens on Business – Rethinking Regulation.
Over-regulation is a major concern to all businesses and especially small businesses.
Effective regulation is also an important tool for delivering Australia’s
social and economic goals. We are committed to getting the balance right.
The comprehensive report, guided by the views of stakeholders representing
industry, small business, consumers and government, makes 178 recommendations
on actions to reduce red tape.
While the report focuses on areas that are predominantly the responsibility
of the Australian Government, it recognises that all three levels of government
contribute to the regulatory burdens on business, and seeks to identify areas
where there is overlap. The state and territory governments, along with local
government, need to follow the lead of the Australian Government and tackle
the issue of reducing the regulatory burden on business. A failure to do so
will have a negative impact on the Australian economy through its impact on
large and small business.
Today we are announcing an interim response which addresses, in full or in
part, 86 of those recommendations. A final comprehensive response addressing
all recommendations will be provided by the end of July 2006.
This interim response is a downpayment on our commitment to reduce regulatory
burdens on business. It responds to a range of recommendations of the Taskforce
aimed at reducing business red tape, including:
- an increase in the minor fringe benefits exemption threshold from $100
to $300, effective from 1 April 2007;
- an increase in the fringe benefits reporting exclusion threshold from $1000
to $2000, effective from 1 April 2007;
- a halving of the incorporation fee from $800 to $400, at an estimated cost
of $216.4 million over the Budget forward estimates period; and
- allowing companies to make annual reports available on the internet and
to send hard copies on request.
The Australian Government is also introducing “smart
form” technology to pre-populate forms with previously provided information
and will also enhance www.business.gov.au
at a cost of $30.8million over three years to implement the use of electronic
signatures so that electronic forms can be verified.
We will also work with the financial sector regulators, the Australian Prudential
Regulation Authority and the Australian Securities and Investments Commission,
to clarify the Government’s expectations in the performance of their functions
and identify where they can adopt common approaches to help reduce business
compliance costs, as well as being more responsive to their stakeholders.
Furthermore, the Parliamentary Secretary to the Treasurer, the Hon Chris Pearce
MP, will today release a consultation paper on corporate and financial regulation
to seek comment on a range of proposed technical changes to reduce the regulatory
burden.
The Productivity Commission will be requested to undertake an inquiry into
the consumer policy framework with a view to promoting greater national consistency
in this area and reducing unnecessary regulatory burden.
In many areas regulation reform and red tape reduction is best achieved through
cooperation between governments. The Australian Government will seek the cooperation
of states, territories and local government to deliver widespread and significant
regulatory reform.
Building on the landmark COAG meeting on 10 February 2006 where all governments
committed to a renewed focus on regulation reform, we will seek COAG’s
agreement to:
- give high priority to developing national consistency in occupational health
and safety standards and request a mid year progress report;
- directly oversee the implementation of a National Mine Safety Framework;
- work together to streamline eight different business registration processes,
and
- work on harmonising administration of a range of state and territory taxes
and charges.
The Australian Government will also ask COAG to build on the work underway
in the areas of occupational health and safety, national trade measurement,
chemicals and plastics and building regulation to incorporate the specific issues
raised by the Taskforce. Importantly, the Workplace Relations Ministerial Council
and Australian Safety and Compensation Council have been asked to move forward
on more nationally consistent workers’ compensation arrangements.
In addition to the new measures we are pursuing, there are already some twenty
actions or reviews under way, or that will shortly commence that address a number
of the Report’s recommendations. For example, the Board of Taxation is
conducting a scoping study to identify the more important areas where small
business compliance costs might be reduced. The Ministerial Council on Energy
is considering the need for non-vertically integrated pipeline owners to maintain
separate accounting records under ring-fencing regulation, and the Productivity
Commission is to undertake a study of how to benchmark regulatory performance
across jurisdictions.
The report also makes important recommendations on how best to address the
underlying causes of over regulation. COAG agreed to commitments to improve
regulation making and regulation review processes, including improved regulation
impact analysis, the targeted annual review of existing regulatory ‘hot-spots’
to be undertaken for the Australian Government by the Productivity Commission
and improved consultation with stakeholders on regulatory proposals. The Government
will consider further changes to improve the process of making and reviewing
regulation for the final response.
To demonstrate how serious we are about addressing the flow of regulation,
we will provide an additional $1.1 million for further development of the Business
Cost Calculator, a mandatory tool for public servants and industry to work out
the costs to business of compliance. The Australian Government has also taken
the initiative of looking at its internal procedures to reduce red tape within
government.
The Australian Government welcomes the report and we commend the work of the
Taskforce members, GaryBanks, RichardHumphrey, AngelaMcRae and RodHalstead,
as well as the supporting Secretariat.
The Australian Government’s interim response can be found at www.pm.gov.au
and www.treasurer.gov.au.
The Report of the Taskforce can be found at www.regulationtaskforce.gov.au
.
MELBOURNE
7 April 2006
| Contact: |
David Alexander |
Treasurer’s Office |
03 9650 0244 |
| |
Ben Mitchell |
Prime Minister’s Office |
02 6277 7744 |
Rethinking Regulation: Report of the
Taskforce on Reducing Regulatory Burdens on Business
Australian Government’s Interim
Response
Contents
RETHINKING REGULATION:
AUSTRALIAN GOVERNMENT’S INTERIM RESPONSE
The Government’s interim response to Rethinking Regulation: Report of
the Taskforce on Reducing Regulatory Burdens on Business addresses 86 of 178
recommendations. The Government’s final response to the report will be
available by the end of July 2006.
HEALTH-RELATED REGULATION
Recommendation 4.1
- The Australian Government should implement the outstanding recommendations
of the Productivity Commission’s 2003 report, General Practice
Administrative and Compliance Costs, and those of the Red Tape Taskforce,
in particular in relation to:
- Supporting cross-government initiatives to make government forms
available electronically;
- Adopting information collection principles to help standardise
information collection and form design;
- Remunerating GPs for providing medical information;
- Coordinating programs and communication affecting GPs; and
- Introducing monitoring arrangements to ensure government agencies
continue to reduce red tape.
|
Response
As an initial response to this recommendation, the Minister for Human Services
recently announced a new simpler provider number application form for new practices.
The form was made available on Medicare Australia’s website from April
and from mid-May can be completed and submitted online. A new dental provider
number application form was made available from April, which reduces seven forms
to one form and isavailable from Medicare Australia’s website. TheMinister
forHuman Services is also currently conducting a review of all Medicare Australia
forms and letters. The Australian Government is considering further options
to address this recommendation in the final response.
Recommendation 4.14
- Medicare should redesign the reconciliation report to group rejected
prescriptions.
|
Response
Changes to redesign the reconciliation report to group rejected prescriptions
are being implemented for online pharmacies as part of the PBS Online project.
The redesign will enable an online pharmacist to easily identify rejected prescriptions
as the rejects will be grouped together in the report. The anticipated timeframe
for implementation is 30June2006.
LABOUR MARKET REGULATION
Recommendation 4.26
- COAG should implement nationally consistent standards for occupational
health and safety (OH&S) and apply a test whereby jurisdictions
must demonstrate a net public benefit if they want to vary a national
OH&S standard or code to suit local conditions.
|
Response
The Australian Government supports the recommendation and notes that COAG agreed
on 10February2006 to progress a range of OH&S reforms. The Australian
Government will ask the Workplace Relations Ministers’ Council (WRMC)
to consider the recommendation in the context of COAG’s decision. WRMC
is to report back to COAG by the end of 2006, and the Australian Government
will suggest COAG seek a progress report in mid-2006.
Recommendation 4.27
COAG should request the Australian Safety and Compensation Council (ASCC)
to examine the duty of care provisions in principal occupational health
and safety Acts as a priority area for harmonisation. In undertaking this
work, the council should give weight to recent reforms in Victoria. |
Response
The Australian Government supports the recommendation and notes that it will
be progressed by the ASCC, as agreed by COAG on 10 February 2006, as a priority
area for harmonisation. WRMC is to report back to COAG by the end of 2006, and
the Australian Government will suggest COAG seek a progress report in mid-2006.
Recommendation 4.28
- COAG should give responsibility for developing national occupational
health and safety training to relevant industry training and skills
councils, and ensure that accredited induction training programs are
developed for all major industries, within a defined framework of in-the-job
training and lifelong learning. The aim should be better educating employers
and employees about the duty of care responsibilities relevant to their
workplace, and embedding and continuously improving workplace health
and safety knowledge and practices.
|
Response
The Department of Education Science and Training and the Department of Employment
and Workplace Relations are working closely with industry and State Training
Authorities to ensure that the embedding of OH&S is enhanced in industry
developed training packages. Generic training units on OH&S awareness are
included in national training packages, and are available for use to inform
OH&S workplace induction training. Induction training in high-risk occupations
where it is essential to have OH&S training prior to the employee entering
the workplace already occurs. For the construction industry, a nationally consistent
approach to induction training is well-advanced.
Recommendation 4.29
- COAG should direct the ASCC to examine the capacity of occupational
health and safety bodies to respond to direct requests from business
for advice on compliance and provide options for removing any impediments.
|
Response
The Australian Government will seek the co-operation of COAG to ask the ASCC
and WRMC to consider this recommendation further, including exploring the programs
already available in states and territories to ascertain if there is capacity
to do more to assist businesses with their OH&S obligations.
Recommendation 4.30
- COAG should establish a high-level representative group to oversee
the National Mine Safety Network (NMSF). This group should work closely
with the Ministerial Council on Minerals and Petroleum Resources (MCMPR)
to oversee the next stage of reform, including the delivery of a single
national regulatory body.
|
Response
The Australian Government supports the recommendation and through COAG will
pursue the implementation of a NMSF, including exploring a single national regulatory
body.
A process is already underway through MCMPR to partially deliver the recommendation.
However, the Australian Government is concerned at both the slow progress in
implementing the NMSF, and the considerable dilution of the potential use of
a NMSF as a powerful instrument to deliver national best practice occupational
health and safety in the mining sector. The Australian Government will seek
the cooperation of COAG to request MCMPR to provide a progress report by June
2006, and subject to that report, will consider establishing the high-level
representative group.
Recommendation 4.31
- COAG should request the ASCC to develop a model for achieving national
consistency in workers’ compensation arrangements. It should ensure
the following areas are addressed as a matter of priority:
- Return to work requirements, including reporting and documentation;
- The definition of a worker for the purposes of workers’
compensation;
- The definition of wages for renewal of workers’ compensation
insurance;
- The level and timing of premium payments for businesses operating
across borders; and
- Self-insurance arrangements.
|
Response
The ASCC was created for the purpose of leading national consistency in OH&S
and workers’ compensation arrangements. The Australian Government considers
the ASCC’s work to be very important. State and territory members of the
ASCC are generally heads of OH&S and/or workers’ compensation authorities.
The ASCC has developed a workplan for workers’ compensation based on
the priorities identified by the WRMC, including psychological injury claims,
return to work, the ageing workforce, comparative performance monitoring, labour
force participation, definitions of employee and disease, self-insurance, and
scheme design.
The ASCC and WRMC will consider the matters raised by the Taskforce at its
meetings in April and May respectively.
Recommendation 4.36
- The Department of Education, Science and Training and other relevant
agencies should work with the Australian Vice Chancellors Committee
to address issues identified in the PhillipsKPA report to reduce red
tape.
|
Response
The Government will work with the AVCC to examine the report’s recommendations
when it becomes available, with a view to implementing any that reduce unnecessary
reporting or regulation where they are of an administrative nature and to consider
any that raise significant policy matters.
Recommendation 4.42
- The Australian Government should:
- Consider implementing broader arrangements for governments to
jointly collect compliance information, avoiding the need for employers
to answer separate queries from Centrelink and other agencies; and
- Examine avenues to further streamline work visa checks undertaken
by employers
|
Response
Centrelink is currently conducting research with a range of businesses to improve
how they do business with Centrelink. For example, Centrelink is piloting electronic
collection and transfer of employee information (required to assess payment
entitlements) from employers. Research results will be used to develop and progressively
implement initiatives to meet the needs of a broad range of businesses, by December
2008.
Centrelink already undertakes data matching programs with other agencies (such
as the Australian Taxation Office) to avoid duplicate data requests on employers.
While some of the information collected by Centrelink is unique to Centrelink
requirements (eg period covered and calculation of income), Centrelink will
continue to explore opportunities for consolidating data collection with other
agencies.
Compliance activities are focusing increasingly on education of employers and
labour suppliers on the need to check the work rights of prospective employees.
The success of this activity is reflected in the rapidly increasing use of Employment
Verification Online by these organisations. The Guide to work rights Employer
Awareness Kit is being revamped with a greater emphasis on Employment Verification
Online.
The Department of Immigration and Multicultural Affairs continues to focus
heavily on improvement to client services. As part of this, constant improvements
are being made to Employment Verification Online to minimise the burden on employers
and labour suppliers.
CONSUMER-RELATED REGULATION
Recommendation 4.44
- COAG, through the Ministerial Council on Consumer Affairs, should
initiate an independent public review into Australia’s consumer
protection policy framework and its administration.
|
Response
The Australian Government will ask the Productivity Commission to undertake
a public inquiry into Australia’s consumer policy framework. It is envisaged
that the review of Australia’s consumer policy framework and its administration
would take 12 months.
Recommendation 4.54
- The Australian Quarantine and Inspection Service (AQIS) should investigate
the merit of extending the use of performance-based inspection levels
for the lower risk categories of food under the Imported Foods Inspection
Scheme.
|
Response
This recommendation is, in effect, the same as Recommendation 3 of the National
Competition Policy Review of the Imported Food Control Act 1992 (the Tanner
Review) with which the Australian Government agreed. In consultation with industry,
AQIS has begun developing a strategy to implement the Tanner Review’s
23 recommendations.
Recommendation 4.62
- The Australian Government, through the Standing Committee of Attorneys-General
(SCAG) should develop and implement options to harmonise state and territory
Evidence Acts and, in particular, examine the merit of the requirement
to retain original documents as proof of contents.
|
Response
The Australian Government supports the goal of harmonisation in evidence laws.
A working group established by SCAG is currently considering recommendations
arising from the recent review of the uniform EvidenceAct regime. The Australian
Government will encourage other jurisdictions to adopt the uniform Evidence
Act regime as part of the SCAG process.
ENVIRONMENTAL AND BUILDING REGULATION
Recommendation 4.65
- The Australian Government should seek to expedite the signing of
environmental assessment bilateral agreements with all remaining states
and territories, and all bilateral agreements should be extended to
include the approval process. Further, in implementing these agreements,
the Australian Government should provide national leadership aimed at
achieving efficiencies in state and territory administrative and approval
processes.
|
Response
The Australian Government agrees to the recommendation and will continue work
to encourage all states and territories to sign assessment bilateral agreements
under the Environment Protection and Biodiversity Conservation Act 1999
(EPBC Act) and approval bilateral agreements, where appropriate. In the interim,
the Australian Government will continue using the case-by-case accreditation
and cooperative assessment processes in the EPBC Act to avoid duplication with
states and territories, and continue to encourage best practice in all administrative
and approval processes.
Recommendation 4.66
- The Australian Government should enhance information and consultation
processes related to operation of the EPBC Act so that affected (or
potentially affected) parties better understand the associated regulations
and their requirements. In particular:
- that proposals can be referred for consideration under the Act
at any stage, including in parallel with other planning and approval
processes; and
- to ensure that affected parties are consulted about any new triggers
considered for inclusion as matters of national environmental significance
under the Act.
|
Response
The Australian Government agrees to the recommendation and will continue to
work with project proponents to ensure they understand both the obligations
and opportunities associated with the EPBC Act.
Recommendation 4.67
- The Australian Government should improve the guidance it provides
on application of the ‘significant impact’ trigger, particularly,
in relation to the issues and reporting requirements that arise where
a referral trigger is engaged.
|
Response
The Australian Government supports the recommendation, and will continue to
work on providing guidance on the practical application of EPBC Act.
Recommendation 4.68
- Concerns regarding the role of Native Title Representative Bodies
and ‘right to be informed’ requirements should be considered
in the current round of consultations associated with the reform package
foreshadowed by the Attorney-General.
|
Response
The Australian Government accepts the recommendation, and notes that concerns
raised in relation to native title will be considered in the context of the
reform package announced by the Attorney-General on 7 September 2005. Consultation
on the reforms is continuing, and it is anticipated that the legislation necessary
to give effect to the reforms will be introduced into Parliament by the middle
of 2006.
Recommendation 4.70
- The Australian Government should implement the recommendations from
the 2005 review of the National Pollutant Inventory, with the following
exceptions:
- Reporting for greenhouse gases should remain outside the National
Pollutant Inventory framework;
- Consideration of including agricultural and veterinary chemicals
should be deferred pending the outcome of other work underway in
this area; and
- The inclusion of waste transfers should be deferred and reconsidered
when the capacity of the National Pollutant Inventory to deliver
existing requirements has been improved.
- The Australian Government should ensure that in considering the inclusion
of additional pollutants, scientific evidence is used to establish that
pollutant emissions are occurring at levels that pose a potential health
and safety risk, consistent with the intent of the National Pollutant
Inventory.
|
Response
The Australian Government does not support the inclusion of greenhouse gases
in the current National Pollutant Inventory, however Environment Protection
and Heritage Council (EPHC) will be deciding the scope of a National Pollutant
Inventory National Environment Protection Measure Variation in June 2006. Following,
and contingent upon, this consideration the statutory public consultation process
will be undertaken in the second half of 2006 with final consideration by the
EPHC scheduled for April 2007.
As part of COAG's new national Climate Change Plan of Action, the Australian
Government supports the acceleration of work by Ministerial Councils to investigate
options to streamline and strengthen energy and emissions reporting.
Recommendation 4.71
- In the context of the current review of the Assessment of Site Contamination
National Environment Protection Measure, the Australian Government should
examine and report on:
- The need to ensure adequate training/guidelines are provided
to staff of state and territory regulators on the use of investigation
and remediation trigger levels in site assessments;
- The need for risk-related considerations to inform decisions
about the merits of site remediation, particularly when the relocation
of contaminated material is being considered;
- The adequacy of procedures to verify compliance with remediation
actions; and
- The capacity to account for historical contamination in determining
the necessary action.
|
Response
The matters raised in this recommendation will be referred to the Committee
which was established by the National Environment Protection Council (NEPC)
to review the Assessment of Site Contamination National Environment Protection
Measure.
The review is due to be completed in August 2006. The NEPC Committee will consider
the review report in September, with a final report to be presented to the Environment
Protection and Heritage Council in late 2006.
Recommendation 4.72
- The Australian Government should undertake further analysis to assess
the merits of the Product Stewardship National Environment Protection
Measure proposal. This analysis should consider the findings of the
Productivity Commission Review of Waste Generation and Resource Efficiency,
particularly in relation to the potential merits of a self regulatory
regime compared to any feasible alternatives.
|
Response
These issues are being dealt with by the peak body of Australian, state and
territory environment ministers – the Environment Protection and Heritage
Council. With key industry sectors, the Council is developing a collaborative
approach to product stewardship which can include co-regulation in the form
of a National Environment Protection Measure (NEPM). Where a majority of industry
favours a national voluntary take back and recycling scheme, a NEPM can provide
support by regulating companies that opt not to participate in the scheme.
The potential impacts of this approach for specific sectors will be analysed
during the second half of 2006, taking into account the findings of the Productivity
Commission Inquiry into Waste Generation and Resource Efficiency. Following
this the Council will invite public comment on a draft NEPM and accompanying
analysis.
| Recommendation 4.73
- The Australian Government should continue to work collaboratively
with the states and territories to implement the recommendations from
the recent Productivity Commission review to enhance the effectiveness
of regulatory arrangements for native vegetation and biodiversity.
|
Response
The Australian Government will continue to work with the states and territories
through the Natural Resource Management Ministerial
Council – a body which aims to promote the conservation and sustainable
use of Australia’s natural resources. The Australian Government will work
to improve regulations for native vegetation and biodiversity in line with the
recommendations of the Productivity Commission Report.
Recommendation 4.74
- The Australian Government should continue to provide national leadership
and work with state and territory governments to develop nationally
consistent regulation of the plantation timber industry.
|
Response
Plantations for Australia: The 2020 Vision, which was revised in 2002
and is being implemented by the Australian and state and territory governments
in partnership with the plantation growing and processing industries, promotes
the continued development of a regulatory framework that supports and compliments
the policy framework to maintain investor confidence and maintain plantation
sector investment. While much of the regulatory framework relating to land use
planning is the responsibility of state, territory and local governments, the
Australian Government will continue to play a leadership role in implementing
the 2020 Vision.
Recommendation 4.75
- The Australian Government should ensure the timely implementation
of the recent Australian National Audit Office recommendations on biosecurity
and quarantine services that have already been agreed by the relevant
departments, with a specific focus on the efficiency and timeliness
of approval and risk assessment processes.
|
Response
The Australian Government has agreed to the recommendations of the Australian
National Audit Office report no. 19, Managing for Quarantine Effectiveness
– Follow-up, and is proceeding with the timely implementation of these
recommendations.
Recommendation 4.76
- The Australian Government should ensure that, through assessing the
relative merits and effectiveness of different regulatory regimes, the
Regulation Impact Statement covering regulation of salt content in laundry
detergent clearly demonstrate why self regulation would not be an appropriate
mechanism to achieve the desired policy goal.
|
Response
The Australian Government supports this recommendation. Options for any national
approach to salts in detergents are expected to be presented to the Environment
Protection and Heritage Council (EPHC) for consideration in June. Consideration
of any Regulation Impact Statement requirements will depend on the outcome of
the EPHC’s deliberations.
Recommendation 4.77
- The Australian Government should:
- Encourage the remaining states to become signatories to the Intergovernmental
Agreement on a National System for the Prevention and Management
of Marine Pest Incursions; and
- Expedite collaborative work with the states and territories to
develop nationally consistent legislation and management requirements
for domestic ballast water that accord with Australian Government
requirements for managing foreign ballast water.
|
Response
The Australian Government is actively working with the states and the Northern
Territory through the Natural Resource Management Ministerial Council and the
Australian Transport Council to develop consistent national ballast water management
requirements. The Australian Government wants outstanding issues resolved and
agreement on the requirements reached by October 2006. However, the states and
the Northern Territory will need to commit resources to develop and implement
legislation in a reasonable timeframe.
FINANCIAL AND CORPORATE REGULATION
Recommendation 5.1
- The Treasurer’s Statements of Expectations should provide specific
guidance to the Australian Prudential Regulation Authority (APRA) and
the Australian Securities and Investments Commission (ASIC) about the
appropriate balance between pursuing safety and investor protection
and market efficiency.
|
Response
APRA and ASIC are statutory authorities with operational independence. The
Treasurer’s Statements of Expectations to APRA and ASIC will convey the
Australian Government’s expectations with regards to performance, objectives,
values and broader government policies. In this context the Statements of Expectations
will provide guidance, consistent with the legislative framework, on the expected
approach of the regulators as they perform their functions. The Australian Government
expects to provide its statements of expectations to APRA and ASIC by July 2006.
Recommendation 5.2
- APRA and ASIC, in consultation with the Australian Government, should
develop additional performance indicators to measure the outcomes they
achieve, having regard to all their respective statutory objectives,
including efficiency and business costs. These indicators should be
developed in the context of the Statements of Expectations received
from the Treasurer.
|
Response
The Treasurer’s Statements of Expectations to APRA and ASIC will address
the need for the regulators to identify and develop measurable performance indicators
across their objectives, which should be done in consultation with government.
The Australian Government expects to provide its statements of expectations
to APRA and ASIC by July 2006.
Recommendation 5.3
- The Australian Government should review the penalties for breaches
of directors’ duties to ensure that they strike an appropriate
balance between promoting good behaviour and ensuring business is willing
to take sensible commercial risks.
|
Response
The Australian Government will address penalties for breaches of director duties
as part of a broader review of criminal penalties and the underlying offences
in the CorporationsAct2001 to be completed in 2007.
Recommendation 5.5
- APRA and ASIC should review their guidance material to ensure it provides
effective guidance on good practice in meeting regulatory requirements
and does not impose additional or inflexible regulatory requirements.
|
Response
The Australian Government will encourage APRA and ASIC to review their guidance
material to ensure it provides effective guidance on good practice in meeting
regulatory requirements and does not impose additional or inflexible regulation
requirements.
Recommendation 5.8
- The Australian Government, in consultation with APRA and ASIC, should
amend the breach reporting requirements to improve consistency and reduce
the compliance burden.
|
Response
As an initial response to this recommendation, the Australian Government will
seek industry views through the Corporate and Financial Services Regulation
Review.
Recommendation 5.10
- The APRA corporate governance requirements should be consistent with
the principles of the Australian Stock Exchange Corporate Governance
Council regime and incorporate a similar level of flexibility. There
should also be scope to update the requirements to reflect contemporary
corporate governance practices.
|
Response
The Australian Government notes that APRA is in the process of revising its
proposed corporate governance prudential standards following industry consultations
in 2005. The Australian Government will refer this recommendation to APRA for
consideration prior to finalising its standards.
Recommendation 5.11
- The Australian Government, in consultation with the relevant agencies
and industry stakeholders, should review the data collection and regulatory
reporting obligations imposed on regulated entities to ensure the information
obtained is essential for supervision and other economic functions.
There should be a particular focus on eliminating overlaps in information
provided to the regulators.
- The review of data collection and regulatory reporting should also
assess the scope to establish an integrated data collection portal to
ensure that regulated entities have to provide information only once.
|
Response
The Australian Government agrees to consult with relevant agencies and industry
stakeholders on these issues through the Corporate and Financial Services Regulation
Review.
Recommendation 5.12
- APRA and ASIC, in consultation with the financial services industry,
should convene a joint industry consultative body. This standing body
should be empowered to:
- Meet regularly to discuss emerging supervisory issues that are
the responsibility of the regulators;
- Contribute to the development of regulation by APRA and ASIC;
and
- Review aspects of the financial and corporate supervisory regimes
(including regulatory coordination) and recommend possible reforms
to APRA and ASIC.
|
Response
The Treasurer’s Statements of Expectations to APRA and ASIC will encourage
the regulators to cooperate and liaise with each other to manage areas where
their responsibilities intersect. The Australian Government will encourage APRA
and ASIC to establish a joint forum to provide industry with an opportunity
to raise issues concerning how regulatory coordination operates in practice.
The Australian Government expects to provide its statements of expectations
to APRA and ASIC by July 2006.
Recommendation 5.13
- APRA and ASIC should, in consultation with the Australian Government
and industry stakeholders, develop industry charters that set out the
rights and responsibilities of the agencies and their regulated entities
in the course of their dealings. Performance against these charters
should be reported in annual reports.
|
Response
The Australian Government, via the Treasurer’s Statements of Expectations
to APRA and ASIC will encourage them, in consultation with the Australian Government
and industry stakeholders, to develop industry charters that set out the rights
and responsibilities of the agencies and their regulated entities in the course
of their dealings and report against these charters in their annual reports.
The Australian Government expects to provide its statements of expectations
to APRA and ASIC by July 2006.
Recommendation 5.14
- ASIC, in consultation with industry stakeholders, should examine
ways to improve the accessibility of officers dealing with complex regulatory
issues raised by large regulated entities.
|
Response
The Australian Government will undertake industry consultation on this issue
through the Corporate and Financial Services Regulation Review.
Recommendation 5.15
- ASIC, in consultation with the Australian Government and industry
stakeholders, should examine options to provide more specific guidance
on meeting regulatory obligations in areas where concerns have been
raised. The effectiveness of this guidance should be reviewed in two
years.
|
Response
The Australian Government will encourage ASIC to examine options for providing
more specific guidance on meeting regulatory obligations, before consulting
more widely in the public arena.
Recommendation 5.17
- The Australian Government should establish a further process to enable
additional refinements to be made to the operation of the financial
services reforms regime in outstanding areas of concern.
|
Response
As an initial response to this recommendation, the Australian Government will
consult with industry through the Corporate and Financial Services Regulation
Review.
Recommendation 5.19
- The Australian Government, state and territory governments, APRA and
ASIC, should, in consultation with industry stakeholders, develop a
mechanism for rationalising legacy financial products. This mechanism
should balance achieving greater operational efficiency with ensuring
that consumers of the products are not disadvantaged.
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Response
The Australian Government will consult with industry and state and territory
governments on this issue through the Corporate and Financial Services Regulation
Review.
Recommendation 5.20
- The Australian Government should introduce amendments to allow companies
to make annual report available on the internet and require hard copies
to be sent only to investors who request them.
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Response
The Australian Government agrees to the recommendation and will ask the Treasury
to effect the necessary legislative amendments as part of the next appropriate
legislative vehicle.
Recommendation 5.21
- The Australian Government should raise the thresholds for the definition
of a large proprietary company. The thresholds should be subject to
periodic review to ensure that only economically significant proprietary
companies are defined as large proprietary companies.
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Response
The Australian Government agrees to the recommendation and will consult with
industry on the most appropriate thresholds for the definition of a large proprietary
company through the Corporate and Financial Services Regulation Review.
Recommendation 5.22
- The Australian Government should review incentives for small businesses
to incorporate, including the level of fees and reporting requirements.
At the latest, these issues should be considered in the 2007 review
of corporation fees and charges.
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Response
The Australian Government agrees to the recommendation and will halve the incorporation
fee from $800 to $400, effective from 1 July 2006, at an estimated cost of $216
million over four years.
Recommendation 5.24
- The Australian Government should consider removing the requirement
for the executive remuneration report to be included in the concise
report.
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Response
The Australian Government will undertake further consultation with industry
on this recommendation through the Corporate and Financial Services Regulation
Review.
Recommendation 5.25
- The Australian Government should review the requirement to provide
a prospectus when issuing shares and options to employees.
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Response
The Australian Government will consult with industry on this recommendation
through the Corporate and Financial Services Regulation Review.
TAX REGULATION
Recommendation 5.30
- The Australian Government should increase the threshold for FBT reporting
from $1000 to $2000 and exempt a wider range of benefits from reporting.
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Response
The Australian Government agrees in principle to the recommendation and proposes
to increase the reportable fringe benefits exclusion threshold from $1,000 to
$2,000. This change will take effect from 1 April 2007.
Further consideration will be given in the final Government response in relation
to exempting a wider range of benefits from the fringe benefits reporting requirement.
Recommendation 5.31
- The Australian Government should increase the FBT minor benefits
threshold from $100 to $300.
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Response
The Australian Government agrees to the recommendation, and proposes to increase
the minor fringe benefits exemption threshold from $100 to $300, with effect
from 1 April 2007.
Recommendation 5.32
- The Australian Taxation Office (ATO) should review and clarify its
guidelines about what is considered ‘irregular’ and ‘infrequent’
for the purposes of the FBT minor benefits exemption.
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Response
The ATO is reviewing its existing guidelines and will provide further clarification
about what is considered ‘irregular’ and ‘infrequent’
regarding the minor benefits exemption.
Recommendation 5.33
- The ATO should examine and implement administrative solutions to
further reduce the compliance costs of calculating FBT on road tolls
and better publicise the work it has already done.
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Response
The ATO is reviewing the current administrative solutions which reduce the
compliance costs of calculating FBT on road tolls and will better publicise
the work it has already done.
Recommendation 5.39
- The ATO should promote its policy to allow items with a purchase
price of $1000 or less to be reported on the business activity statement
as non-capital items.
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Response
The ATO will promote its policy to allow items with a cost of $1000 or less
to be reported on the BAS as non-capital. This policy applies to acquisitions
that would otherwise have to be recorded at item G10 on a BAS, if the business
does not record capital acquisitions separately and expects its annual turnover
to be less than $1million. The revised and updated GST Activity Statement Instructions
are due to be published in July 2006. They contain advice regarding the reporting
of low cost capital items.
Recommendation 5.45
- COAG should develop measures to harmonise the tax base and administrative
arrangements of payroll tax regimes across the states and territories.
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Response
While the nature of the tax base and the administration of state and territory
payroll tax is the responsibility of state and territory governments, the Australian
Government would support any move to harmonise these across states and territories.
Therefore, the Australian Government supports the recommendation and will seek
to progress this through COAG, as well as the harmonisation of the administration
of like taxes and charges across the state and territory governments.
Recommendation 5.46
- COAG should encourage the elimination of stamp duties included in
the Intergovernmental Agreement (IGA) and should develop measures to
harmonise the administration of any remaining stamp duty regimes.
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Response
The Australian Government supports this recommendation. Seven states and territories
have agreed on a schedule abolish the majority of taxes listed for review in
the IGA. Inefficient state taxes such as stamp duty on mortgages, leases, and
credit and rental arrangements will be abolished, as was originally intended
under the IGA. While the New South Wales Government has not accepted the Australian
Government’s proposed timetable on the abolition of these taxes, productive
discussions were held about an alternative timetable to abolish these taxes
in New South Wales at the 31 March 2006 meeting of the Ministerial Council on
Commonwealth-State Financial relations. These discussions will continue with
the aim of reaching early agreement. The Australian Government will also continue
to pursue the abolition of stamp duty on business conveyances of real property.
This is the last remaining tax listed in the IGA.
Recommendation 5.48
- The Board of Taxation should consider the following areas in its
scoping study of small business compliance costs:
- the simplified tax system;
- trust loss provisions and family trust elections;
- possible benefits of including additional information on activity
statements to assist users;
- ways of reducing the number of PAYG withholding tables; and
- developing a systematic approach to adjusting thresholds in the
tax law.
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Response
The Australian Government has referred the five issues listed in the recommendation
to the Board of Taxation for consideration as a part of its current scoping
study of small business compliance costs. The emphasis of the scoping study
is identifying and analysing the main costs small business (especially micro
business) face in complying with taxes administered by the Australian Taxation
Office.
TRADE-RELATED REGULATION
Recommendation 5.56
- The Australian Government, through the Ministerial Council on Energy,
should examine the need for non-vertically integrated pipeline owners
to maintain separate accounting records under the ring fencing provisions
of the Gas Code as part of its existing energy market reform program.
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Response
The Australian Government has asked the Ministerial Council on Energy to consider
this recommendation in the context of its current review of the Gas Code. It
is expected that revised legislation will be released for public consultation
in May 2006, with a view to enactment on 1 January 2007.
Recommendation 5.58
- The Australian Government should:
- Review the requirement for foreign acquisitions of real estate
to obtain Foreign Investment Review Board approval; and
- Raise the threshold for approval of other acquisitions.
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Response
The Australian Government, in consultation with the Foreign Investment Review
Board, will undertake a review of real estate screening and the desirability
of maintaining existing screening arrangements for all real estate acquisitions.
The Australian Government will ask that the Treasurer report to Government on
the outcome of the review by the end of 2006.
Recommendation 5.59
- The Australian Government should consider conducting a review of
.com.au domain name administration.
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Response
The Department of Communications, Information Technology and the Arts is examining
Australia’s domain name administration and policy structures following
five years of operation under a self regulatory model. The recommendation on
domain names will be considered in the course of this process.
REDUCING BURDENS ACROSS GOVERNMENT
Recommendation 6.3
- The Australian Government should develop a business reporting standard
within the Australian Government sphere by 2008, based on the Netherlands
model and work undertaken by the ATO. COAG should consult with state
and territory governments to extend this approach to state, territory
and local governments as soon as practical thereafter.
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Response
As one initial response to this recommendation, the Australian Government will
provide $30.8 million over three years to introduce across all levels of government
a capability to validate and notarise “smart forms” and other electronic
files, to significantly reduce the time required by business to access, complete
and lodge forms electronically for a range of purposes. This recommendation
will be considered further by the Government in its final response.
Recommendation 6.4
- The Australian Government should:
- Work with the states and territories to streamline business name,
Australian Business Number and related licensing registration processes
and report back to COAG; and
- Improve information available to business about these obligations.
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Response
The Australian Government agrees to the recommendation and will work closely
with the states and territories through the Small Business Ministerial Council
to streamline business name registration across Australia, and potentially other
registration processes. It will also seek to improve the information available
to business through these processes.
ADDRESSING THE UNDERLYING CAUSES OF OVER-REGULATION
Recommendations 7.1-7.4, 7.8-7.10 and 7.13
- The Australian Government should introduce measures to improve its
regulation making processes.
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Response
The Australian Government agrees to these recommendations, is committed to
best practice regulation and welcomes better measurement of all costs, including
compliance costs of regulation.
On 12 October 2005 the Australian Government announced its commitment to the
more rigorous use of cost-benefit analysis within government when new regulations
are being considered.
The existing regulation impact statement (RIS) process is consistent with these
recommendations and the Australian Government notes that recommendations to
strengthen the RIS process are consistent with existing Government policy.
The Australian Government will revise its Guide to Regulation in light
of its 12October 2005 announcement and consideration of the Taskforce’s
recommendations. It will also use the Business Cost Calculator to measure the
regulatory and compliance cost of proposals.
At its February meeting COAG agreed to a range of measures to ensure best-practice
regulation making and review, with all governments agreeing to:
- establish and maintain effective arrangements to maximise the efficiency
of new and amended regulation and avoid unnecessary compliance costs and restrictions
on competition;
- undertake targeted public annual reviews of existing regulation to identify
priority areas where regulatory reform would provide significant net benefits
to business and the community;
- identify further reforms that enhance regulatory consistency across jurisdictions
or reduce duplication and overlap in regulation and in the role and operation
of regulatory bodies; and
- in-principle, aim to adopt a common framework for benchmarking, measuring
and reporting on the regulatory burden.
- COAG also agreed to enhance cost benefit analysis of regulatory options,
such as through use of the Business Cost Calculator.
These recommendations will be considered in full in the final response.
Recommendations 7.5-7.6
- The Australian Government should enhance arrangements for meaningful
consultation on regulatory proposals. (7.5-7.6)
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Response
The Australian Government agrees with these recommendations. The Australian
Government will consider mechanisms for enhancing the level of meaningful consultation
with potentially affected businesses in developing or amending regulations.
A whole-of-government policy on consultation requirements will be developed
and followed by Australian Government agencies and would be included in the
revised Guide to Regulation.
The Australian Government agrees that papers to assist consultation, such as
a draft regulation impact statement, a ‘green paper’ or draft legislation,
be made available to relevant parties on matters of major significance and that
complex regulations be tested with relevant business interests.
Recommendations 7.14-7.17 and 7.19-7.21
- The Australian Government should take steps to improve regulators’
accountability, accessibility and flexibility (7.14 - 7.17 and 7.19
- 7.21)
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Response
The Australian Government agrees to these recommendations to improve regulators’
accountability, accessibility and flexibility. The Australian Government agrees
that legislation should provide guidance to regulators on the policy intent
and objectives of the legislation in order to facilitate a balanced approach
to regulation-making and encourage risk-based implementation. Ministers will
be asked to highlight policy objectives of legislation within their Statements
of Expectations and in second reading speeches.
Regulators will be asked to ensure that they have internal review mechanisms
in place.
The Australian Government agrees that regulators should issue protocols on
their public consultation processes, which should be consistent with whole-of-government
policy (refer to recommendation 7.5). Standing consultative bodies covering
specific areas of regulation are already used by a number of regulators. The
Australian Government will seek to implement such arrangements more broadly
in accordance with its commitment to enhanced consultation with business on
regulatory matters. The Australian Government agrees that regulators be asked
to develop a code of conduct in regard to consultation with regulated entities.
These issues will be considered further in developing the whole-of-government
policy on regulation consultation and will be reported on in the final response.
Recommendation 7.24
- COAG should consider establishing a series of reviews targeted at
areas where there is significant overlap and/or inconsistency between
Australian Government and state and territory government regulations.
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Response
The Australian Government supports this recommendation. On 10 February 2006,
COAG agreed to address six priority cross-jurisdictional hot spot areas where
overlapping and inconsistent regulatory regimes are impeding economic activity.
Those areas are:
- rail safety regulation;
- occupational health and safety;
- national trade measurement;
- chemicals and plastics;
- development assessment arrangements; and
- building regulations.
COAG also agreed to each jurisdiction initiating at least annual targeted reviews
tor reduce the burden of existing regulation in its own jurisdiction through
a public inquiry and reporting process (decision 5.2(a), Attachment B to the
Communique from the
10
February 2006 COAG meeting refers) and these annual reviews be used
to identify further reforms that enhance regulatory consistency across jurisdictions
or reduce duplication and overlap in regulation and in the role and operation
of regulatory bodies (decision 5.4, Attachment B to the Communique from the
10
February 2006 COAG meeting refers).
Recommendation 7.29
- Governments should evaluate the scope to make cross-jurisdictional
comparisons on a regulator basis of the efficiency and effectiveness
of their regulatory regimes.
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Response
The Treasurer has agreed that the Productivity Commission undertake a study
of how to benchmark regulatory performance across jurisdictions. COAG also endorsed
this study (decision 5.3 (a) of Attachment B to the Communiqu of 10February
COAG meeting).
COMMONWEALTH-STATE INITIATIVES BEING PROGRESSED
UNDER THE AUSPICES OF COAG:
Recommendation 4.32 and 4.33
- COAG should extend its work on skills, training and mutual recognition
to include both para-professional and professional occupations and consider
measures to align the national training system with occupational licensing
and registration regulations.
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Response
The Australian Government will ask COAG to build on the work already underway
on measures designed to underpin a new genuinely national approach to apprenticeships,
training and skills recognition and alleviate skill shortages currently evident
in some parts of the economy.
Recommendations 4.56, 4.58, 4.60 and 4.61
- Regulation of chemicals and plastics in Australia.
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Response
On 10 February 2006, COAG decided to establish a ministerial taskforce, with
each jurisdiction nominating one responsible Minister, to develop measures to
achieve a streamlined and harmonised system of national chemicals and plastics
regulation, and reporting progress to COAG by mid 2006. The Australian Government
will ask COAG to expand the work of the ministerial taskforce to include consideration
of the recommendations of the Taskforce.
Recommendations 4.78-4.80 and 4.83
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Response
On 10 February 2006, COAG noted the findings of the Productivity Commission
research paper, Reform of Building Regulation. Governments committed
to achieve a nationally-consistent Building Code of Australia based on minimum
regulation and will formalise that commitment by signing the new inter-governmental
agreement. COAG will also request the Local Government and Planning Ministers
Council, co-opting where necessary Ministers with responsibility for building
regulation, to report back by mid 2006 on the content and timetable for implementing
further building regulation reforms including a nationally-consistent building
code. The Australian Government will ask COAG to expand the work already underway
to include the recommendations of the Taskforce.
Recommendation 5.52
- The Australian Government should initiate an independent public review
to identify practical steps to expedite the adoption of a nationally
consistent trade measurement regime and streamline the present arrangements
for certifying trade measurement instruments.
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Response
The Australian Government will ask COAG to build on the work already underway
on developing a national system of trade measurement that would rationalise
the different regulatory regimes of the Commonwealth, States and Territories
and streamline the present arrangements for cost recovery and the certification
of trade measuring instruments.