Policy Impact Analysis resources to support new policy development

Increasingly, governments are interested in understanding the overall impacts of policy proposals on their people, and how the costs and benefits are distributed across different cohorts of the community, including the most vulnerable.

Impact analysis is a tool for developing well-designed policy, making good policy decisions, and contributes to a robust picture of impacts for decision-makers.

When drafting New Policy Proposals (NPPs) or Cabinet Submissions, drafting agencies need to complete various impact analysis requirements.

Impact analysis frameworks

There are five impact analysis frameworks either currently available to drafting agencies or in development:

• Office of Impact Analysis – Prime Minister and Cabinet
• Gender Analysis and Gender Impact Assessment Framework – Office for Women
• Regional Australia Impact Statement – Department of Infrastructure, Transport, Regional Development, Communications and the Arts
• First Nations Impact Framework – National Indigenous Australians Agency
• Digital Impact Assessments - Digital Transformation Agency

Participant benefits

• An overview of multiple impact analysis processes.
• Access resources to support impact analysis during policy development.
• Learn about requirements of the Cabinet Handbook and Budget Process Operational Rules.

Suitable for

APS 1 – SES Band 1

Category and User Level

This resource aligns with the Strategy, Policy & Evaluation Craft at the Foundation level.

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Policy Impact Analysis across Government information session 

This session was recorded in November 2023 as part of the APS Academy’s MasterCraft event series, and features key panellists sharing information on policy proposals, impact analysis, requirements of impact analysis during Cabinet process and similarities and differences of different impact analysis processes.

Note: You will need a valid account and log into APSLearn to view the session.

Office of Impact Analysis

The Office of Impact Analysis (OIA) works to ensure Government policy and decisions are supported by the best possible evidence and analysis. The OIA work with departments and agencies to produce detailed, evidence-based assessments of complex policy issues. The OIA coaches agencies through the impact analysis process, which includes analysing the pros and cons of multiple policy options to best address the policy problem at hand. Ultimately the OIA focus is on the quality of the evidence and analysis. They publish the impact analysis and publicly report on quality and compliance. The OIA is located in the Department of the Prime Minister and Cabinet and maintain day-to-day independence from the Australian Government in their decision-making.

To learn more:

• The Office of Impact Analysis
• Australian Government Guide to Policy Impact Analysis
• OIA - Published Impact Analyses

Gender Analysis and Gender Impact Assessment Framework

The Government has committed to putting gender equality at the centre of Budget decision making and embedding gender responsive budgeting (GRB) in policy making. From the 2023-23 Mid-Year Economic and Fiscal Outlook (MYEFO) process, departments are required to undertake gender analysis for all New Policy Proposals (NPPs) and Cabinet Submissions. Gender analysis is key to providing decision makers with transparent information about the gendered impacts of their decisions.

To support implementation of GRB, the Department of the Prime Minister and Cabinet (PM&C) has published Including Gender: an APS Guide to Gender Analysis and Gender Impact Assessment, along with a host of newly available reference material and resources. These can now be accessed on the APS Gender Analysis Community of Practice – your one stop shop for all gender responsive budgeting and gender analysis related tools, resources, training and guidance.

To learn more:

• Working for Women: A Strategy for Gender Equality
• Including Gender: an APS Guide to Gender Analysis and Gender Impact Assessment
• If you would like to join the CoP, register for an Official GovTEAMS account on the GovTEAMS website and request access directly through the APS Gender Analysis Community of Practice,
• If you would like to discuss your agency’s gender analysis capability needs, please contact the Office for Women at OFWcapability@pmc.gov.au

Regional Australia Impact Statement

A Regional Australia Impact Statement (RAIS) is designed to help policymakers understand how an NPP will affect regional, remote and rural Australia differently to metropolitan Australia. A RAIS can also set out how an NPP or Submission aligns with the Government’s Regional Investment Framework, which sets out the Government’s approach to how regional investment is delivered across the Commonwealth.

It is recommended agencies consult DITRDCA early in the policy development and proposal drafting process to discuss the nature of the regional impacts, assess whether a separate RAIS would be beneficial, and for guidance on the summary statement in the Impacts table of an NPP or Cabinet Submission.

To learn more:

• Regional Australia Impact Statements
• For further advice on RAIS matters and to begin the consultation process please contact: RAIS@infrastructure.gov.au

First Nations Impact Framework

The First Nations Impact Framework aims to assist drafting agencies to meaningfully consider and analyse potential policy impacts on First Nations people, communities and organisations, early in the policy development process. The Framework supports Commonwealth departments and agencies to develop New Policy Proposals and Cabinet Submissions aligned with Government commitments to the National Agreement on Closing the Gap. Drafting agencies are encouraged to engage the NIAA prior to reaching out to First Nations stakeholders for assistance with culturally appropriate engagement.

To learn more:

• Please find self-service guidance and further resources on the First Nations Impacts GovTeams page (Note: You will need an active GovTeams account to access these resources)
• Contact the First Nations Impact Team at the National Indigenous Australians Agency via: FirstNationsImpacts@niaa.gov.au.

Digital Impact Assessments

The world of digital is always changing, and the potential impacts on service design and delivery for Australians can be great.

The Digital Transformation Agency provides advice to entities developing digital and ICT-enabled investments to ensure they are well-designed, robust and meet whole-of-government digital and ICT policies, priorities and standards.  

Entities are required to contact the DTA early in the investment planning and policy development process to confirm if their proposal requires assessment as part of the Investment Oversight Framework (IOF), before it is considered by government. This engagement will also determine subjectivity of a proposed investment to the ICT Investment Approval Process (IIAP).  

To learn more:  

• Digital and ICT investments | Digital Transformation Agency (dta.gov.au): this site provides all necessary information about the Investment Oversight Framework. 
• If you have any further questions regarding your proposal’s subjectivity and the DTA’s processes, please contact us at investment@dta.gov.au