You are developing regulation with a likely cost of no more than $2 million per year. You are not required to prepare a Regulatory Impact Statement (RIS).

If you have assessed that the cost of the proposed regulation is less than $2 million per year, then it is likely that you have already:

• defined the objective the regulation is seeking to achieve

• identified those likely to be impacted

• assessed the likely scale of the impact, both costs and benefits.

If the answers to these questions indicate that the regulation involves other complexities, for example, it will affect multiple stakeholders, or affected stakeholders are particularly interested, or the impacts are overly concentrated on certain stakeholders, then you may want to consider undertaking a RIS anyway.

Whichever direction you choose, the development of the regulation from here may require consultation with industry or other parties likely to be affected.

Seek guidance from your legal team and/or Better Regulation Victoria on how to proceed.

How should I undertake the economic assessment?

It is unlikely that you'll need to undertake an economic assessment. However, if an economic assessment is required, guidance on undertaking economic assessment Guidance-on-how-to-undertake-economic-assessment-internet.DOCX (DOCX 127.36 KB) has been developed to assist when performing, commissioning and evaluating economic assessments. Further guidance on specific processes, variables and methods is also available.

Cost-benefit analysis is recognised as leading practice economic assessment and is the recommended approach across the Victorian Government. In practice it may not be possible to undertake a cost-benefit analysis for all proposals and other methods may be used on an exceptions basis.

All economic assessments should be guided by the principle of proportionality, such that the investment in undertaking an economic assessment should be proportional to the scale and risk of the particular issue, initiative or investment.