Regulation Review - IPART - NSW Government

4 Estimating the impacts of recommended reforms
To estimate delay cost savings of a recommended reform, we will seek to:
Identify the delay reduced or eliminated if the reform were to be
implemented – eg, a reduction in the delay in processing development
approvals (DAs)
Place a quantity and dollar value on the reduced delay – if the average DA
processing time is reduced from 50 days to 30 days, there is a saving of
20 days. If the average value of a development for which approval is sought is
$1 million and the cost of capital (of interest rate) is 7%, the value of this saved
20 days equates to $3,836 ((20 days/365 days) x $1 million x 7% = $3,836).
Multiply the value of the reduced delay by the relevant population of
businesses or individuals affected – eg, if an average of 1,000 businesses or
individuals per annum benefit from the reduced delay, the total annual cost
saving is $3.8 million (which equals $3,836 x 1,000).
Box 4.1 below outlines the results of some recent surveys of business on their
regulatory compliance costs. The surveys by the PC and VCEC related
specifically to local government as a regulator.
54 IPART Regulation Review