Plastic Bags - COAG Standing Council on Environment and Water

The ACG Analysis found that the benefits of implementing a ban on plastic bags would equate to
$217.78 million in net present value terms over the period from 2005 to 2016. Costs identified
would be $1057.08 over the same period.
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A number of the benefits of implementing this option (such as social benefits) have not been
quantified. According to the ACG analysis, these unquantified benefits would need to be greater
than $839.30 million over the period before this option provides an improvement in social welfare.
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Business Cost Calculator Findings
The following is an estimate of the annual cost to small, medium and large businesses for the
implementation of a ban option. This estimate is based on the following assumptions some of
which were used to inform the ACG reports. Please note that these are indicative only and are
provided to inform the consultation process. The ACG analysis takes into account more impacts
on costs and benefits, for example such as theft. Tables for considering the break down of costs
under the ACG analysis can be view in Appendix C of the May 2006 ACG report.
Assumptions for small businesses:
20
25
30
• Approximately 64,505 businesses with approximately 321,964 employees
• Staff training of 4 hours at $18.00 per hour.
• No cost incurred to modify equipment to cater for reusable bags or administration costs.
• Transaction times estimated with labour costs of $18 per hour ($0.005 per second)
o A time increase of 5 second per transaction not using plastic bags and a current
average of 2.5 bags per transaction.
• Small businesses allocate $100 to in-store promotion and education.
Assumptions for medium businesses:
• Approximately 3223 businesses affected with approximately 132,420 employees
• Staff training of 4 hours at $18.00 an hour.
• All medium business spend $3000 on modifications
• Transaction times estimated as above.
• Medium business allocate $1000 to in-store promotion and education.
Assumptions for large businesses:
35
40
• Approximately 211 businesses affected with approximately 457,050 employees.
• Staff training of 4 hours at $18.00 an hour.
• All Supermarkets spend $3000 on store modifications and 500 general merchandise and other
retail stores spend $1500 on modifications
• Transaction times estimates as above
• Large business allocate $3000 to in-store promotion and education.
Cost per small business Cost per medium business Cost per large business
Start-up $420.00 $2893.93 $160,077.04
On going $233.52 $2897.38 $152,778.18
Consultation Regulatory Impact Statement: Investigation of options to reduce the environmental impact of plastic bags January 2007 74