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Cost of Aviation Accidents and Incidents | btre report 113has increased by about 1.5 years over the intervening period 20 . Thissmall increase will have further increased the period of productivitylosses for every death. However, this is at the end of each productivelife and, with the effects of discounting, the impact of this small increasein life expectancy is minor.Since BTE (1999), BTRE has suggested that the government bond rateis an appropriate discount rate. The government bond rate is representedby the real yield on Australian Treasury Capital Indexed Bonds 21 .In 1995 and 1996 this rate was about 5 per cent; in 1997 it was about4.5 per cent; between 1998 and 2003 it fluctuated between 3 per centand 4 per cent. Since August 2004, the rates for 5, 10 and 15 yearbonds have all been under 3 per cent 22 . A 4 per cent discount rate wasused in BTE (1998). In this analysis, a 3 per cent discount rate is used.This has the effect of increasing the present value of productivity lossesby about 15 per cent.Between 1996 and 2004, nominal wages have increased by about 30per cent. This increases the value of productive output losses (foregonefuture earnings in the workplace and foregone future contributions tohousehold and volunteer work).16In comparison, the Consumer Price Index increased by 21 per centbetween June 1996 and June 2004. This means that real wages grewat about 1 per cent per annum. In this paper real wages are assumedto continue growing at 1 per cent per annum. BTE (1998) used a realwages growth rate of 2 per cent. Changing the real wages growth ratefrom 2 per cent to 1 per cent reduces the present value of productivitylosses by about 14 per cent.20 Ibid, Table 7.321 Recent and historical data on these yields is available from the Reserve Bank of Australia22 On 16 March 2005, real yields were 2.69 per cent, 2.75 per cent and 2.765 per cent for bondswith maturity dates of August 2010, August 2015 and August 2020 respectively. Historicaldata available from the RBA website show the trends described.