Table 9 Estimated cost of Option 1 – government
Cost |
Estimated cost – 10-year appraisal period ($ m ) |
Licensing framework for work with legacy products |
Drafting of national licensing regulation |
$ 0.2 |
Licensing software |
$ 9.2 |
Processing of licence applications |
$ 11.5 |
Compliance and monitoring / enforcement |
$ 85.1 |
Communication costs |
$ 1.5 |
Provision of income and vocational training support for displaced workers |
Jobseeker payments |
$ 0.7 |
Training support costs |
$ 0.04 |
Total |
$ 108.2 |
4.4.3 Costs to workers
Total costs of Option 1 to workers , shown in Table 10 , are estimated to be $ 3.1 million over the appraisal period .
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Lost income – $ 2.9 million , covering the difference between average wage in this sector and current jobseeker payments for the displaced workers from those sole trader and small business PCBUs that close as a result of a prohibition . The cost is calculated based on a worker receiving Jobseeker for an 8-week period . As discussed in Section 4.4.2 , this relatively short period is based on an assumption that any periods of unemployment will be minimal given the tight labour market in the construction sector .
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Retraining costs – $ 0.2 million over the appraisal period , based on average course fees for a Certificate III qualification for Civil Construction , Cabinet Making , Tiling and Fabrication Trades , for the 3 % of displaced workers from PCBU closures who are assumed to retrain .
Table 10 Estimated cost of Option 1 – workers
Cost Estimated cost – 10-year appraisal period ($ m )
Lost income over period of unemployment net of JobSeeker
$ 2.9
Out-of-pocket costs for retraining to other trade $ 0.2 Total $ 3.1
4.5 Option 2 monetised costs
The costs associated with prohibition of higher silica engineered stone ( engineered stone with a crystalline silica content of 40 % or more ) are those attributed to government and other industry PCBUs for a licensing framework for work with legacy products , as discussed in sections 4.3.2 , 4.4.1.2 and 4.4.2 . Engineered stone PCBUs will still be able to fabricate and install lower silica engineered stone ( less than 40 % crystalline silica content ), and expected market availability of this product means there
DECISION REGULATION IMPACT STATEMENT Prohibition on the use of engineered stone Page 38 of 107