Impact Rationale Option 1 Rationale Option 2 (relative (relative to to base case) base case) Increase in water corporations administrative costs Industry NA Small (In the order administration of $316k pa, Increase costs for some water costs $1.5million NPV corporations from increased for the next 5 involvement in participating in years) preparing DWMP and preparing a response in areas where they were previously not consulted. Decrease in costs for other water corporations that were previously required to prepare a SMP across the region. Industry NA Possible reductions in compliance + compliance costs costs. Uncertain cost saving Increases the likelihood of efficient investment in sewerage infrastructure by providing an obligation on Councils to consult with water corporations. Costs as per option 1 plus EPA and council Small increase in one-off Small one-off - Increase in ongoing reporting costs administration state government costs (In the for municipal councils relating to costs administrative costs order of Medium sized (footnote 117 - Assumes there are $800k) ongoing costs (In 79 Councils, and the cost of a water Cost of developing tool to the order of $1 corporations of preparing a SMP is aid in assessing permit million pa, $400,000 for 4% of councils every eligibility year. This equates to $316k per $4.7million NPV annum or $4.3 million NPV for the for the next 5 next 20 years (using inflation of years) Collating and updating 2.5% and discounting rate of 7%): technical advice. Developing/ updating their DWMP Disseminating tools and (5 yearly) guidelines Audit and reporting on progress against the DWMP (3 yearly) Developing and disseminating public education materials. Water quality Improvement in water + Improvement in water quality ++ quality and associated impact and associated benefits resulting benefits resulting from: from: Improved servicing decisions as Improved planning decision a result of councils being more of councils as a result of increased information on likely to implement and update how to assess and manage DWMPs (given greater
Impact Rationale Option 1 (relative to base case) Rationale Option 2 (relative to base case) Industry administration costs NA Increase in water corporations administrative costs Increase costs for some water corporations from increased involvement in participating in preparing DWMP and preparing a response in areas where they were previously not consulted. Decrease in costs for other water corporations that were previously required to prepare a SMP across the region. Small (In the order of $316k pa, $1.5million NPV for the next 5 years) Industry compliance costs NA Possible reductions in compliance costs. Increases the likelihood of efficient investment in sewerage infrastructure by providing an obligation on Councils to consult with water corporations. + Uncertain cost saving EPA and council administration costs Small increase in one-off state government administrative costs Cost of developing tool to aid in assessing permit eligibility Collating and updating technical advice. Disseminating tools and guidelines Developing and disseminating public education materials. Small one-off costs (In the order of $800k) Costs as per option 1 plus Increase in ongoing reporting costs for municipal councils relating to (footnote 117 - Assumes there are 79 Councils, and the cost of a water corporations of preparing a SMP is $400,000 for 4% of councils every year. This equates to $316k per annum or $4.3 million NPV for the next 20 years (using inflation of 2.5% and discounting rate of 7%): Developing/ updating their DWMP (5 yearly) Audit and reporting on progress against the DWMP (3 yearly) - Medium sized ongoing costs (In the order of $1 million pa, $4.7million NPV for the next 5 years) Water quality impact Improvement in water quality and associated benefits resulting from: Improved planning decision of councils as a result of increased information on how to assess and manage + Improvement in water quality and associated benefits resulting from: Improved servicing decisions as a result of councils being more likely to implement and update DWMPs (given greater ++
Accessible_SEPP_Waters_Policy_Impact_Assessment.docx