Skip to main content
Go to search page

Regulator performance framework metrics

The Water Act 2007 (Cth) (the Water Act) established the MDBA to, among other things, prepare, implement, enforce and review an integrated plan for the Murray–Darling Basin.

In performing this function, MDBA's key regulatory roles are in relation to advising the Minister on the accreditation of Basin State water resource plans that are consistent with the Basin Plan 2012 (Basin Plan) and thereafter ensuring they are complied with and ensuring that there is compliance with the trading rules under Chapter 12 of the Basin Plan.

Key regulated entities are Basin State government water agencies and in the case of the trading rules, irrigation infrastructure operators and water access rights holders.

Regulator Performance Framework

The Australian Government's Regulator Performance Framework (the Framework) was released in October 2014. The Framework aims to improve performance by encouraging regulators to undertake their function with the minimum impact necessary to achieve regulatory objectives.

The Framework comprises six outcomes-based key performance indicators (KPIs) to articulate the Government's overarching expectations of regulator performance:

  1. Regulators do not unnecessarily impede the efficient operation of regulated entities
  2. Communication with regulated entities is clear, targeted and effective
  3. Actions undertaken by regulators are proportionate to the regulatory risk being managed
  4. Compliance and monitoring approaches are streamlined and coordinated
  5. Regulators are open and transparent in their dealings with regulated entities
  6. Regulators actively contribute to the continuous improvement of regulatory frameworks.

The Framework requires regulators to undertake an annual self-assessment against the six KPIs listed above. 

More information

Assessing our achievement of the KPIs

In consultation with the Australian Farmers Federation, The Australian Conservation Foundation, the National Irrigators Council, Water Services Association of Australia and the Australian Water Association we have developed a series of output based activities to measure our performance against the six KPIs.

The first report assessing our achievement of the KPIs will be available following completion of the first assessment period (30 June 2016), and annually thereafter.

These reports will focus on our engagement with stakeholders. Our evidence base against each of the 6 KPIs is shown in the table below.

Key Performance Indicator (KPI) required by the Regulator Performance Framework

MDBA evidence

KPI 1 – Regulators do not unnecessarily impede the efficient operation of regulated entities

Regular, ongoing review of policies, procedures and requirements, including through consultation and engagement with stakeholders, independent experts and industry associations.

Documented established communication mechanisms with regulated entities, including feedback from existing complaint mechanisms.

KPI 2 – Communication with regulated entities is clear, targeted and effective.

Demonstrated appropriate consultation with stakeholders prior to significant regulatory or policy changes.

Demonstrated effective mechanisms for responding to stakeholder engagement / complaint.

KPI 3 – Actions undertaken by regulators are proportionate to the regulatory risk being managed

Demonstrated engagement with regulated entities to inform them of the regulators’ expectations.

Compliance and enforcement strategies are published and are consistent with agreed risk management policies.

KPI 4 – Compliance and monitoring approaches are streamlined and coordinated

Evidence of collected information being acted upon, stored and re-used.

Monitoring and enforcement strategies that allow for a range of regulatory responses.

KPI 5 – Regulators are open and transparent in their dealings with regulated entities

Enforcement strategy and risk approach are published.

Advice and guidance is widely available to stakeholders, with feedback mechanisms in place to support and inform continuous improvement.

KPI 6 – Regulators actively contribute to the continuous improvement of regulatory frameworks

Stakeholder events held regularly to facilitate participation in the development and/or amendment of regulatory frameworks.

Documented procedures are in place to facilitate the flow of information between the regulator and policy departments.