The Department of the Prime Minister and Cabinet has released information on Cabinet's regulatory impact analysis requirements.

The information says the impact analysis framework encourages an evidence-based approach to policy development, which helps to ensure that all practical options for addressing the problem have been considered and that the benefits of the preferred option not only exceed the costs, but will also deliver the highest level of net benefit.

A Regulatory Impact Statement sets out an agency's best advice on the problem definition, objectives, identification and analysis of the full range of practice options. The information says a Regulatory Impact Statement should be prepared before a Cabinet paper.