Department of the Prime Minister and Cabinet of New Zealand

04/30/2026 | Press release | Distributed by Public on 04/29/2026 18:05

CO (26) 2: Expectations for Good Law-making

Formats

Introduction#

1 This circular sets out the Government's expectations for good law-making to ensure responsible regulation.

2 Responsible regulation can help governments to achieve their desired economic, environmental and social outcomes, support the effective operation of markets, and protect communities from harm. However, regulation can also have negative consequences, such as lowering productivity, creating barriers to competition and innovation, placing undue restrictions on individuals' liberties and their ability to use and exchange their property, and generating large compliance costs for individuals and businesses, sometimes in excess of the benefits.

3 Recognising this, the Government expects good law-making to be supported by consultation and careful analysis to ensure it is responding to a well-defined problem, and the most appropriate option is being taken forward. Regulation should only proceed if its benefits are expected to outweigh its costs; it is the most effective, efficient and proportionate response to the issue concerned; and it is clear how it will be implemented.

4 The Regulatory Standards Act 2025 (the Act) establishes a benchmark for good regulation through a set of principles of responsible regulation based on good law-making and economic efficiency. The Act aims to reduce the amount of unnecessary and poor regulation, by making it transparent where legislation does, or does not, meet the principles of responsible regulation.

5 This circular supports good law-making and the implementation of the Act through setting out expectations and requirements for:

5.1 policy development (Part 1);

5.2 consultation and advance notice of major regulatory proposals (Part 2);

5.3 developing and approving legislation (Part 3);

5.4 regulatory stewardship and regular review of existing legislation (Part 4).

6 This circular provides links to further guidance published by the government and the Ministry for Regulation, and will be updated with more links as more guidance is published in the near future. The circular replaces earlier Cabinet circulars on impact analysis requirements and disclosure statements.

Application of this circular#

7 This circular applies:

7.1 from when Part 2 of the Regulatory Standards Act comes into force on 1 July 2026;

7.2 to legislation made or administered by agencies subject to Cabinet direction, regardless of whether it is seen by Cabinet.

8 The information in this circular can also act as best practice for wider agencies (i.e Crown entities and local government).

Department of the Prime Minister and Cabinet of New Zealand published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 00:06 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]