What is Net Benefit?
Every Australian Standard, regardless of who develops it, must demonstrate positive Net Benefit to the community as a whole. All Australian Standards must provide a value or benefit that exceeds the costs likely to be imposed on suppliers, users and other parties in the community as a result of its development and implementation.
Net Benefit is a core component of how Standards Australia operates.
For simplicity and to align the Productivity Commission's recommendations with ABSDO's requirements, Standards Australia has defined Net Benefit to mean "having an overall positive impact on relevant communities".
Net Benefit takes into account the costs and benefits related to the following criteria:
- Public health and safety;
- Social and community impact;
- Environmental impact;
- Competition; and
- Economic impact.
These measures align with Australian Government Office of Best Practice Regulation (OBPR) and provide a level playing field for all proposals for Standards development projects.
More information about Net Benefit can be found in the Guide to Net Benefit.
Standards must deliver Net Benefit
The Accreditation Board for Standards Development Organisations, which oversees all Standards Development Organisations (SDOs) has incorporated the Net Benefit requirement into the Criteria for Designation as an Australian Standard.
All SDOs, including Standards Australia, need to satisfy these requirements in order to develop Australian Standards.
This requirement aligns to the recommendation arising from the Productivity Commission report into standards in 2006¹, and also reflects the Memorandum of Understanding between Standards Australia and the Commonwealth Government.
¹Standard Setting and Laboratory Accreditation: Productivity Commission Research Report, November 2006