businesses will not incur any other costs other than those identified by the analysis. – Regulatory Burden The Australian Government has introduced the to Regulation’, which discusses the ‘Guide importance of cutting red tape. A key principle for Australian Government policy makers in the Guide to Regulation is that: The cost burden of new regulation must be fully offset by reductions in existing regulatory burden. All regulatory whether arising from new regulations or changes to existing regulation, must be quantified using the Regulatory Burden Measurement framework. The framework must also be used for quantifying offsetting regulatory savings, where applicable. As measured in accordance with the framework, the regulatory offset required to implement the option would be a total of $21.9 million. The Commonwealth’s share of this is $2.43 million. Governments of the States and Territories are not required under COAG policy to identify regulatory offsets. Some jurisdictions may have their own mechanisms regarding regulatory offsets, which would be a matter for those jurisdictions to consider. Sensitivity Analysis A sensitivity analysis has been conducted on the net present values by varying the parameters around the central analysis. These include: A discount rate of 3% and 11% will be assessed. Discount rate: Installation and maintenance costs: Installation and maintenance costs of tempering valves may vary particularly between States and Territories, where labour rates vary. Therefore a variation of ± 10% will be assessed. Percentage of replacements: The percentage of replacements “like-for-like” “like-for-like” was estimated in 2009 and may have changed. Therefore a variation of ± 10% will be assessed. 2 - Net Present Value Sensitivity Analysis Parameter Net Present Value Discount rate Low (3%) $256,109,865 High (11%) $190,551,059 Installation and maintenance cost Low (-5%) $208,111,335 High (+5%) $230,017,792 Percentage of “like-for-like” replacements
– businesses will not incur any other costs other than those identified by the analysis. Regulatory Burden The Australian Government has introduced the ‘Guide to Regulation’, which discusses the importance of cutting red tape. A key principle for Australian Government policy makers in the Guide to Regulation is that: The cost burden of new regulation must be fully offset by reductions in existing regulatory burden. All regulatory whether arising from new regulations or changes to existing regulation, must be quantified using the Regulatory Burden Measurement framework. The framework must also be used for quantifying offsetting regulatory savings, where applicable. As measured in accordance with the framework, the regulatory offset required to implement the option would be a total of $21.9 million. The Commonwealth’s share of this is $2.43 million. Governments of the States and Territories are not required under COAG policy to identify regulatory offsets. Some jurisdictions may have their own mechanisms regarding regulatory offsets, which would be a matter for those jurisdictions to consider. Sensitivity Analysis A sensitivity analysis has been conducted on the net present values by varying the parameters around the central analysis. These include: Discount rate: A discount rate of 3% and 11% will be assessed. Installation and maintenance costs: Installation and maintenance costs of tempering valves may vary particularly between States and Territories, where labour rates vary. Therefore a variation of ± 10% will be assessed. Percentage of “like-for-like” replacements: The percentage of “like-for-like” replacements was estimated in 2009 and may have changed. Therefore a variation of ± 10% will be assessed. 2 - Net Present Value Sensitivity Analysis Parameter Net Present Value Discount rate Low (3%) $256,109,865 High (11%) $190,551,059 Installation and maintenance cost Low (-5%) $208,111,335 High (+5%) $230,017,792 Percentage of “like-for-like” replacements
application_of_temperature_control_requirements_for_heated_water_-_consultation_ris.docx