Distributional Analysis Guidance Note

Regulation
Monday, 30 March 2020
Publication author(s):
Office of Best Practice Regulation
Publication abstract:

Decision makers are often concerned about the distributional impacts of projects and policies. Distributional analysis is an important supplementary step to provide decision makers important information about the overall outcomes for the community.

Distributional analysis furthers the informative value of a Cost-Benefit Analysis (CBA) by articulating how costs and benefits are distributed across different cohorts of a population. Distributional analysis can thus provide greater information to decision makers about how certain cohorts are affected differently by particular policies.

This guidance note explains how factors that are unique to different cohorts should be taken into account in addressing the seven RIS questions listed in The Australian Government Guide to Regulatory Impact Analysis. It includes a stepped process of performing a distributional analysis.

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