“One-for-One” Rule

The “One-for-One” Rule applies, because the regulatory amendments impose incremental administrative costs associated with learning the new regulatory requirements.

Following the “One-for-One” Rule, a 7% discount rate and a 10-year forecast period for the valuation of “INs” and “OUTs” were used. The price base year is 2012 (values are in constant 2012 prices), and the present value (PV) base year for the valuation is 2012 (i.e. the impact of all “INs” and “OUTs” was discounted back to 2012).

The amendments are considered to be an “IN.” The total annualized administrative impact for all businesses is $1,305 or $2 per affected business.

The standard cost model was used, and the key assumptions are documented below.

1. Learning costs

A total of 592 industry stakeholders have to learn the regulatory requirements to determine the impact on their business. It was assumed that one employee per business needs to learn the regulatory requirements and it would take one hour to complete the task.