Annex D - Cost Considerations

When evaluating the costs of using a standard or risk assessment to support a policy or program, there are a number of questions that can be used to derive data. Policy officers should utilise stakeholder consultation and trusted research sources to answer the following questions to assess cost impacts. The aim of this is to ensure the most cost effective solutions while getting the best policy or program outcome.

Business Costs

Will the chosen standard or risk assessment incur costs associated with:

  • ‘paper burden’ or administrative costs
  • reporting
  • licenses fees
  • changes in business procedures or practices
  • shifting to alternative sources of supply
  • higher input prices
  • reduced access to markets
  • keeping abreast of regulatory requirements
  • seeking permission to conduct an activity to comply
  • the requirement to purchase additional materials, equipment or external services
  • cooperating with audits and inspections
  • other compliance costs, including indirect costs or impacts on intermediaries such as accountants, lawyers and banks or financial services

Consumer Costs

Will the chosen standard or risk assessment incur costs associated with:

  • higher prices for good and services
  • reduced utility (quality, choice etc.) of goods and services
  • delays of getting goods to the marketplace
  • a restriction on product availability

Community and Environment Costs

Will the chosen standard or risk assessment incur costs associated with:

  • environmental degradation or pollution
  • a reduction in health and safety
  • a undesirable redistribution of income and wealth
  • lower employment levels or economic growth

Government Costs

Will the chosen standard or risk assessment incur costs associated with:

  • running education campaigns and the provision of additional information to stakeholders
  • provision of data collection or collation of business information
  • administration or inspection services
  • enforcement costs
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