Regulatory Impact Analysis (RIA)
Agencies need to provide robust analysis and advice to Cabinet before a decision can be made on any regulatory change.
RIA overview
When a Minister wants to create or change legislation, their agency must first provide Cabinet with an analysis of the likely impact of the regulatory changes being proposed. This is known as regulatory impact analysis (RIA). The level of analysis should be in proportion to the significance of the change, and in some cases an exemption will apply.
Completing regulatory impact analysis before making a proposal to Cabinet ensures Ministers have information on:
- the scope of the regulatory issue that’s being addressed, the rationale for government intervention, and the options for addressing it (including non-regulatory options)
- the costs and benefits of each option
- the views of the people who have been consulted on the proposal
- how the regulatory changes could be implemented, and monitored and reviewed in the future.
Cabinet’s requirements for impact analysis are designed to encourage systematic and evidence-informed policy development, which helps support high quality regulation. They also help ensure Cabinet can make well-informed decisions about the regulatory changes being proposed.
Cabinet’s requirements for impact analysis are set out in full in a Cabinet circular, which also gives effect to the government’s expectations for good regulatory practice.
Cabinet circular: Impact Analysis Requirementsopen_in_new
Government expectations for good regulatory practice (268 KB, Pdf)
Regulatory Impact Statements (RISs)
If a regulatory proposal is taken to Cabinet, it will generally need to be accompanied by a Regulatory Impact Statement (RIS).
A RIS summarises an agency's best advice on a regulatory proposal to both its Minister and Cabinet. It’s based on the findings of the agency’s regulatory impact analysis.
If an agency needs to complete a RIS to include with a regulatory proposal to Cabinet, the Ministry for Regulation (the Ministry) will confirm
- which templates to use, and
- how to complete the quality assurance for the RIS.
RIS documents are published online at the same time as the relevant bill is introduced to Parliament or the regulation is gazetted, or at the time the material is proactively released. This helps ensure an open and transparent regulatory process.
You’ll find copies of all published RIS documents in our library.