THE Productivity Commission believes much could be done to improve the way regulations are developed and scrutinised by Australia's governments.
The commission found evidence that proposals with the largest impacts on communities are often not rigorously examined.
In a new report released on Thursday, the commission says while regulatory impact analysis processes have been adopted by all governments, they are failing to deliver on their potential due to inadequate ministerial and agency commitment.
"While these processes are reasonably well designed and supported in all jurisdictions, there are some shortcomings and a significant gap between agreed and actual practice that must be addressed," commissioner Robert Fitzgerald said in a statement.
The commission has made a number of recommendations to improve the effectiveness of policy development, including a two-stage impact analysis process, with stakeholders being able to comment on all draft regulation impact statements.
The report also suggests opportunities to avoid assessment must be reduced, while there should be more effective targeting of regulatory impact analysis resources.
"More widespread and consistent adoption of the leading practices identified by the commission, particularly in relation to transparency and accountability, would create stronger incentives for governments to demand and officials to deliver policies that are well considered," Mr Fitzgerald said.
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