Table 4.
All 6 risk factors | 95% Uncertainty Interval | ||
---|---|---|---|
AUD millions | Mean | Lower Limit | Upper Limit |
Potential opportunity costs FCA | |||
Production gains/(losses) | 473 | (2) | 1,155 |
Recruitment/training costs | 79 | n/a | n/a |
Leisure based production | 110 | (361) | 602 |
Home based production | 248 | (69) | 568 |
Total production FCA | 830 | (109) | 1,843 |
Health sector offsets | 1,504 | 1,504 | 1,504 |
Total Opportunity Cost Savings FCA | 2,334 | 1,395 | 3,347 |
Sensitivity analysis using Human Capital Approach (HCA) | |||
Financial Outcomes HCA | |||
Production gains/(losses) | 1,196 | (648) | 3,070 |
Leisure based production | 110 | (361) | 602 |
Home based production | 248 | (69) | 568 |
Total production HCA | 1,553 | (435) | 3,569 |
Health sector offsets | 1,504 | 1,504 | 1,504 |
Total Opportunity Cost Savings HCA | 3,057 | 1,069 | 5,073 |
No probabilistic uncertainty analysis was conducted for health sector offsets because we were unable to quantify uncertainty for these point estimates. Taxation is treated as a transfer payment and should not be added to production effects or health sector offsets. HCA: Human Capital Approach; FCA Friction Cost Approach (preferred conservative estimate). Leisure and home based production estimates are based on persons 15+ years. Production gains/(losses) and taxation effects are based on persons 15-64 years. Recruitment and training costs are included in production gains/losses using the FCA, but not counted using the HCA. Values are net present value using a 3% discount rate. Numbers in brackets ( ) indicate the possibility of losses resulting from achieving the target, rather than gains.