A taskforce has backed a bill that could see taxpayers being forced to pay millions of dollars in compensation to business.
Supporters say a Regulatory Responsibility Act would make law making more transparent and weed out bad legislation.
A bill was introduced to Parliament in 2006 by Rodney Hide who is now Regulatory Reform Minister.
The taskforce headed by former Treasury head Graham Scott was asked by the Commerce Select Committee to review the bill.
It has now reported back to the Government and broadly supports the original bill.
This includes provision to pay compensation to private interests suffering losses as a result of new and existing laws.