To account for these uncertainties, the following assumptions have been made to estimate per business costs. These estimates assume all Trusted Traders will be required to meet the security training requirement. Depending on the design of the security training requirement, it may be possible that some Trusted Traders may already satisfy the requirement through their existing training practices, and thus would not incur any regulatory costs associated with the requirement. Assumption Source Value Developing a Staff time required to PwC (2012) Chemical 22.5 new training develop and embed Security Regulation program, and Impact Statement: embedding this Precursors to homemade in operational explosives. procedures Hourly staff cost OBPR (2014) Regulatory $59.85 Burden Measurement Framework: Guidance Note. Total cost per business $829.95 (on year of joining) Providing Total number of ABS (2014), Labour 11,476,586 training to Australians employed, Force Australia, cat no current staff June 2013 6202.0 Percentage of ABS (2012), Small 53% employment accounted Business: An economic for by medium/large overview businesses number of ABS (2014), Counts of 54,128 medium/large Australian Businesses, businesses, June 2013 including entries and exits, cat no 8165.0 Average number of Calculation 112 employees per business Percentage of employees ABS (2012), Employee 10% that would be required hours and earnings, cat to undergo training no 6306.0 Length of training (in Approximation 1 hours) Total number of training Calculation 11 hours Cost per hour OBPR (2014) Regulatory $59.85 Burden Measurement Framework: Guidance Note. Total cost per business $415 (on year of joining) Average number of See above 112 Providing training to new employees per staff medium/large business Average annual turnover RBA (2012), Labour 20% Market Turnover and Mobility Percentage of employees See above 10% that would be required to undergo training Number of new Calculation 2 employees that would be required to undergo training Length of training (in See above 1 hours) Total number of training Calculation 2 hours Cost per hour OBPR (2014) Regulatory $59.85 Burden Measurement
To account for these uncertainties, the following assumptions have been made to estimate per business costs. These estimates assume all Trusted Traders will be required to meet the security training requirement. Depending on the design of the security training requirement, it may be possible that some Trusted Traders may already satisfy the requirement through their existing training practices, and thus would not incur any regulatory costs associated with the requirement. Assumption Source Value Developing a new training program, and embedding this in operational procedures Staff time required to develop and embed PwC (2012) Chemical Security Regulation Impact Statement: Precursors to homemade explosives. 22.5 Hourly staff cost OBPR (2014) Regulatory Burden Measurement Framework: Guidance Note. $59.85 Total cost per business (on year of joining) $829.95 Providing training to current staff Total number of Australians employed, June 2013 ABS (2014), Labour Force Australia, cat no 6202.0 11,476,586 Percentage of employment accounted for by medium/large businesses ABS (2012), Small Business: An economic overview 53% number of medium/large businesses, June 2013 ABS (2014), Counts of Australian Businesses, including entries and exits, cat no 8165.0 54,128 Average number of employees per business Calculation 112 Percentage of employees that would be required to undergo training ABS (2012), Employee hours and earnings, cat no 6306.0 10% Length of training (in hours) Approximation 1 Total number of training hours Calculation 11 Cost per hour OBPR (2014) Regulatory Burden Measurement Framework: Guidance Note. $59.85 Total cost per business (on year of joining) $415 Providing training to new staff Average number of employees per medium/large business See above 112 Average annual turnover RBA (2012), Labour Market Turnover and Mobility 20% Percentage of employees that would be required to undergo training See above 10% Number of new employees that would be required to undergo training Calculation 2 Length of training (in hours) See above 1 Total number of training hours Calculation 2 Cost per hour OBPR (2014) Regulatory Burden Measurement $59.85
Trusted-Trader-Programme-RIS.docx