Reducing red tape 
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Last updated: 1 March 2007
Reducing red tape in the APS
Chapter 4. Stakeholder consultation
| Design and analysis |
| Stage 2: Stakeholder consultation |
| Independent advice |
| Decision-making |
The systematic development of a regulatory or administrative requirement involves seeking the views of stakeholders who will be affected by it. Among other things, this will provide an opportunity to obtain practical feedback on the requirement’s implementation.
Stakeholder consultation can help an agency to identify:
- obstacles to successful implementation
- the extent of required changes to systems and business processes
- additional administrative burden and costs involved
- implications for other aspects of the agency’s administration
- alternative options that might not have been considered adequately during the design and analysis stage.
Stakeholder consultation may take different forms, depending on whether the proposed requirement is internal to the agency or has whole-of-government dimensions.
For effective consultation, those being consulted should be informed of the details and objective of the proposed requirement, and be given practical information about its operation and implementation. Stakeholders should be given a reasonable opportunity to respond to draft material, and be provided with subsequent feedback regarding how their comments have been addressed.
Internal requirements
Internal requirements are self-imposed within agencies and may reflect either legislative requirements or matters relevant to the particular agency. Agencies have discretion as to the form and content of these internal requirements, within the legislative constraints. Such requirements are generally administrative, and include Chief Executive’s Instructions, human resources policies, information technology policies and practices, and other operational arrangements.
It is good practice for the agency to consult affected areas about a proposed internal requirement. Those who will have to meet the requirement are best positioned to advise on its implementation and other practical considerations.
The extent of consultation on a proposed internal requirement is a matter for the agency to determine, in the light of the impact and scale of the requirement.
Whole-of-government requirements
Some whole-of-government requirements, such as the Legal Services Directions issued by the Attorney-General under the Judiciary Act 1903, are specifi ed in legislation or delegated legislation.
In their areas of responsibility, some agencies also produce whole-of-government requirements that are not specified in law (e.g. Australian Public Service Commission circulars and advices).
Given the broad application of whole-of-government requirements, agencies should consult stakeholders about proposals for such requirements in all but exceptional circumstances. The appropriate level of stakeholder consultation will vary, depending on the proposed requirement.
Significant whole-of-government requirements should be subject to broad agency consultation, unless sensitivity or urgency does not permit this (e.g. Cabinet consideration of matters of national security).
A requirement is considered significant if:
- it is likely to involve substantial changes to the way that agencies operate
or - the estimated cost to agencies of meeting the requirement is substantial (this may be determined using the Business Cost Calculator)
or - the proposal requires Cabinet consideration.
For other proposed whole-of-government requirements, it will usually be sufficient to consult key stakeholder agencies or a small group of affected agencies. These more limited agency consultations are best targeted at those likely to bear the greatest administrative burden or cost. However, agencies should try to ensure that the consultation includes an adequate range of perspectives and subjects, including matters particularly pertinent for small agencies.
Using stakeholder consultation
The responsible agency should consider stakeholder feedback when determining whether to further consider, modify or discard the proposed requirement. If the agency makes substantive changes to the requirement or decides to pursue a different option, further consultation may be appropriate.
