Thursday, January 14, 2021
In Brief
The Productivity Commission (Commission) recently released its final report on resources sector regulation. The report examines the regulation of minerals and petroleum in Australia, and identifies issues and leading practices approaches to addressing these issues.
The Commission has made a number of recommendations aimed at improving the current regulatory arrangements in the sector and reducing unnecessary costs for businesses.
The Commission was also tasked with considering potential impediments to the timing, nature and extent of business investment in the Australian resources sector.
The recommendations from the report have the potential to significantly affect the mining and petroleum sectors if implemented. Relevantly, the Commission has noted that improving the foundations of the regulatory system are particularly relevant in the current climate, as jurisdictions seek to develop reform agendas to boost economic activity as part of the COVID-19 recovery. The Morrison Government's Deregulation Agenda, aimed at improving regulator culture and minimising compliance costs for businesses, suggests that the Commonwealth Government may have a greater appetite to implement the recommendations from the report.