Cost Estimated cost – 10-year appraisal period ($ m )
Licence application costs |
$ 0.4 |
$ 0.4 |
$ 0.1 |
$ 0.8 7 |
Licence renewal costs |
$ 0.2 |
$ 0.2 |
$ 0.1 |
$ 0.5 |
Licence compliance costs ( audit preparation ) |
$ 0.4 |
$ 0.3 |
$ 0.1 |
$ 0.8 |
Sub-Total |
$ 1.1 |
$ 1.0 |
$ 2.0 |
$ 4.2 |
Other industry PCBUs |
Sole traders |
Small |
Medium- Large |
Total |
Licensing framework for work with legacy products |
|
|
|
|
Licence application costs |
$ 26.2 |
$ 24.2 |
$ 0.7 |
$ 51.2 |
Licence renewal application costs |
$ 16.0 |
$ 14.8 |
$ 0.4 |
$ 31.2 |
Licence compliance costs ( audit preparation ) |
$ 25.9 |
$ 24.0 |
$ 0.7 |
$ 50.6 |
Sub-Total |
$ 68.1 |
$ 63.0 |
$ 1.8 |
$ 133.0 |
Total |
$ 69.3 |
$ 64.0 |
$ 3.8 |
$ 137.1 |
4.6.1.1 Engineered stone PCBUs
Costs associated with business closure
Under Option 3 , it is assumed that 5 % of sole traders ( 22 ), 5 % of small businesses ( 21 ) and 2 % of medium businesses ( 3 ) would exit the industry due to the additional regulatory burden associated with licence requirements to work with lower silica stone . The total number of business closures are assumed to be lower than that modelled for Option 1 , given Option 3 would not prohibit all engineered stone , and closures are attributed to the regulatory burden of the licensing scheme rather than an inability to work with engineered stone .
Costs associated with switching to non-stone products
As per Option 2 , PCBUs are not expected to need to switch to non-stone products under Option 3 , as engineered stone suppliers have indicated they expect to be able to meet market demand for lower silica engineered stone by mid-2024 .
4.6.1.2 Other industry PCBUs
The legacy licencing costs to other industry PCBUs ($ 133 million ) are consistent with those described for Option 1 ( see Section 4.3.2 ).
4.6.2 Cost to government
Option 3 poses an estimated total cost to government of $ 111.1 over the appraisal period ( see Table 14 ). These costs include :
� implementation of licensing framework for work with legacy products – as described for previous options , this amounts to $ 107.5 million over the appraisal period .
7
As above
DECISION REGULATION IMPACT STATEMENT Prohibition on the use of engineered stone Page 41 of 107