If you are a business or peak body, you may interact with Commonwealth regulators frequently. This might include consultation on issues affecting your industry, or you may engage in activities that require some form of compliance. The Framework provides an opportunity for stakeholders to have a say in the way regulators assess how they administer regulation.
What will be measured?
Commonwealth regulators subject to the Framework are required to report how they are performing against six key performance indicators. The indicators cover issues like communication, risk-based and proportionate approaches, transparency, reducing regulatory burden, and continuous improvement. Regulators will need to design performance metrics to measure and assess their performance against the KPIs in the Framework over time.
How will the Framework affect stakeholders?
You may be consulted by a regulator on the development of their performance metrics. This presents an opportunity for stakeholders to shape the way regulators intend to measure their performance. It will be important for regulators to identify performance metrics that are useful for stakeholders in their interactions, and provide the opportunity to highlight areas for continuous improvement.
How is performance measured?
All Commonwealth regulators will self-assess their performance against the Framework annually. A number of regulators will be subject to an external review of their performance as part of a three year programme, and a small number of regulators may be subject to an annual external review. External reviews will be conducted by review panels of government and industry representatives to provide further accountability, and provide additional transparency for stakeholders and the community in general.
Can stakeholders participate in the review process?
Some stakeholders will be approached by regulators to participate in the review process by providing external validation of the regulator’s self-assessment results or on a review panel for an external review.
External validation is not intended to be an audit of the regulator’s self-assessment results. Rather, this process provides additional assurance that the regulator has validly assessed their own performance.
It is intended that review panels for any external review of regulators will include a mix of expertise to provide an objective assessment of regulator performance. Representation may include a comparable regulator, representatives of the regulated community, government agencies and others as appropriate to the industry or individual regulator.