Carve-outs Guidance Note

RegulationBest Practice Regulation
Monday, February 27, 2017
Publication author(s):
Office of Best Practice Regulation
Publication abstract:

A carve-out is a standing agreement between the Office of Best Practice Regulation (OBPR) and a department, removing the need for a preliminary assessment to be sent to the OBPR for certain types of regulatory change. A carve-out can be used when anticipated regulatory changes are minor or likely to occur on a regular basis.

This guidance note gives further information about carve-outs, explains how to obtain one, and lists the carve-outs currently in place.

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Introduction

The Government has introduced the Australian Government Guide to Regulation, which outlines the process for developing a regulatory proposal, including a Regulation Impact Statement (RIS).

The Guide to Regulation describes some special cases in the RIS process, one of which relates to carve-outs. A carve-out is a standing agreement between the Office of Best Practice Regulation (OBPR) and a department, removing the need for a preliminary assessment to be sent to OBPR for certain types of regulatory change.

A carve-out can be used when anticipated regulatory changes are minor or machinery in nature or likely to occur on a regular basis. A change is minor if it does not substantially alter the existing regulatory arrangements for businesses, community organisations or individuals. Machinery changes are changes that are consequential to, and required as a result of, a substantiative regulatory decision, and for which there is limited discretion available to the decision maker.

Carve-outs cannot be applied to proposals where Cabinet is the decision maker.

This guidance note gives further information about carve-outs, explains how to obtain one, and lists the carve-outs currently in place.

If a carve-out is granted, you are still required to quantify the regulatory costs imposed on businesses, community organisations and individuals, along with associated cost offsets, using the Regulatory Burden Measurement (RBM) framework. The regulatory costs and offsets must be reported to portfolio Regulatory Reform Units.

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