There had been introduced a new agenda that encompasses determinations to form a national unified economy in the country. These efforts in recent few years have been showed in setting of COAG or Council of Australian government. In 2008, the Commonwealth and State committed to new working arrangement in between State and Commonwealth. This committee on federal fiscal relations has introduced new inter-government agreement. This lessened the number of transactions to the states and federal government. In 2008, itself there have been introduced 8 competition reforms and 27 priority areas of regulatory reformwhile preparing National Partnership (NP). This agenda also leads to reform in the sector of business, technology, transport, infrastructure, environment and planning. The delivery of this reform also requires significant coordination between states and Federal Government.
Therefore it is true that the relationship between the State Federal and State is quite important to run the national economy seamless. The regulatory management practices which are among the OCED Best practices are demonstrated by the Australian Government in this scenario.
Till now there have been substantive work completed on regulatory gate keeping processing recently, including Borthwick-Milliner review of the RIA. The application of regulatory impact analysis can fluctuate with political commitment and pose serious problems to the quality of regulations. Since 2009, in Australia there have been more than 135 instances of non-compliance or exemption that have occurred during the Regulation Impact Statement Process. Disciplined regulation making must be matched through effective administrationin the whole regulatory system.
From the analysis the main implications that the Committee drew of the underlying reasons for regulation were that within the financial system there is a layering of regulation required.
• Competition regulatory oversight is required by all financial markets and participants to ensure that they are competitive.
• In the same manner, regulatory oversight is to be conducted by all financial participants and markets to ensure that they function efficiently and fairly.
• Prudential regulations are not required by all financial participants and markets. Prudential oversight is much more paternalistic and intrusive. Similarly, it couldinterfere with the efficiency and competitiveness of the system and is more costly. The rule of thumb which the committee chose was that if the financial promises offered were difficult to keep then institutions should only be subjected to prudential regulation.