Attachment A The Department of Employment (the Department) engaged PricewaterhouseCoopers (PwC) to conduct a cost-benefit analysis of the proposed changes to the Seacare scheme. PwC held limited consultations with a small number of Seacare scheme industry representatives and employers and used data held by Comcare to estimate the benefits and regulatory costs of the proposed changes. The costings presented in this Regulation Impact Statement (RIS) have been developed from the cost-benefit analysis prepared by PwC. Further information on the analysis methodology is provided below. Work Health and Safety Analysis Methodology The below provides a summary of the assumptions used by PwC in calculating the work health and safety impacts. The following sections describe the respective approaches applied in estimating the impacts associated with each key change expected to occur through alignment of the OHS(MI) Act and associated Regulations with the Commonwealth WHS Act and Regulations. Assumptions used in estimating work health and safety impacts Assumption Unit Value Source Based on a sample of Enterprise Bargaining Agreements (EBAs) across offshore, bluewater and dredging. A weighted average was calculated using seafarers per sub-sector and assuming Average hourly wage that the mix between senior and junior $ per hour 84 all workers crew was a mix of around 50:50. – Salaries were converted into an hourly rate using the following assumptions: 27 weeks worked per year 70 hours worked per week (10 hours per day for 7 days a week). Individuals’ hourly $ per hour 29 Standard OBPR estimate rate of leisure time Number of employers the Seacare Employers 33 Seacare Annual Report 2014-15 scheme Number of employees covered under the 6,863 Seacare Annual Report 2014-15 Seacare scheme Seacare claims $millions 15 PwC analysis of Seacare data amount per annum annually Regulatory Impact Statement - Technical appendix to the RIS (Proposed Ratio of direct to Occupational Health and Safety indirect costs of Ratio 1:4 Regulations 2007 and Proposed claims Equipment (Public Safety) Regulations 2007)
Attachment A The Department of Employment (the Department) engaged PricewaterhouseCoopers (PwC) to conduct a cost-benefit analysis of the proposed changes to the Seacare scheme. PwC held limited consultations with a small number of Seacare scheme industry representatives and employers and used data held by Comcare to estimate the benefits and regulatory costs of the proposed changes. The costings presented in this Regulation Impact Statement (RIS) have been developed from the cost-benefit analysis prepared by PwC. Further information on the analysis methodology is provided below. Work Health and Safety Analysis Methodology The below provides a summary of the assumptions used by PwC in calculating the work health and safety impacts. The following sections describe the respective approaches applied in estimating the impacts associated with each key change expected to occur through alignment of the OHS(MI) Act and associated Regulations with the Commonwealth WHS Act and Regulations. Assumptions used in estimating work health and safety impacts Assumption Unit Value Source Average hourly wage – all workers $ per hour 84 Based on a sample of Enterprise Bargaining Agreements (EBAs) across offshore, bluewater and dredging. A weighted average was calculated using seafarers per sub-sector and assuming that the mix between senior and junior crew was a mix of around 50:50. Salaries were converted into an hourly rate using the following assumptions: 27 weeks worked per year 70 hours worked per week (10 hours per day for 7 days a week). Individuals’ hourly rate of leisure time $ per hour 29 Standard OBPR estimate Number of employers the Seacare scheme Employers 33 Seacare Annual Report 2014-15 Number of employees covered under the Seacare scheme 6,863 Seacare Annual Report 2014-15 Seacare claims amount per annum $millions annually 15 PwC analysis of Seacare data Ratio of direct to indirect costs of claims Ratio 1:4 Regulatory Impact Statement - Technical appendix to the RIS (Proposed Occupational Health and Safety Regulations 2007 and Proposed Equipment (Public Safety) Regulations 2007)
seacare_reforms_ris.docx