Calculator guidance material
The time-cost calculator is designed to enable a user-friendly and efficient method of estimating
time-based compliance costs for the purposes of regulatory impact analysis, based on the method outlined
in the Victorian Guide to Regulation and its associated Toolkits.
The calculator asks a series of questions that need to be answered before the costs can be estimated. All
fields must be filled out for the estimate to be calculated. Note that the required fields will vary according
to the information provided along the way.
Stage 1. Start a new calculation
To begin a new calculation click on ‘Start a new calculation’ located on the Instructions tab of the Excel file.
A pop-up window with the time cost calculator will appear. To progress through your calculation click on
the ‘Next’ button located at the bottom of the window.
If you need to amend information provided on a prior tab, click on the ‘Previous’ button.
Please note all information will be lost if you exit the calculator without completing all of the required
information fields.
Stage 2. Purpose
The following sections are required to be filled out to determine the purpose of the proposed regulatory
change:
Regulatory change
Enter a short description, or title, to summarise the proposed regulatory change.
Commencement year
From the drop-down menu select the year in which the regulatory change will come into effect. Options
from the years 2012 to 2021 are available to select from.
Number of years changes in force
Select the period of time that the change will be enforced for. This can range from one to 10 years, with
10 years being the maximum.
Purpose
Select the purpose for which you are using the time-cost calculator between a Regulatory Impact
Statement (RIS) and a Regulatory Change Measurement (RCM). Only one option for the purpose of the
proposed regulatory change can be selected. Upon selection of the purpose, required fields will adjust
accordingly.
Note the following definitions of a RIS and RCM:

A RIS is a formal policy development and evaluation process required in Victoria that assesses the
options available to government to meet a policy objective based on an analytical cost-benefit
framework that examines the economic, social and environmental impacts of the legislative proposals.

A RCM is a consistent and straightforward approach for Victorian agencies to measure the impact of
changes in regulatory requirements and processes that contribute to the government’s red tape target.
Sector involved
Select whether the regulatory change applies to the business or leisure sectors. Only one option can be
selected in this field, either ‘Business’ or ‘Leisure’. Upon selection of the purpose, required fields will adjust
accordingly.
If the regulatory change applies to both sectors, complete a calculation for each sector and then add them
together.
Note for licence changes:

If you are dealing with Professional Licences, select the ‘Business’ option and enter the number of
licences in the field ‘Number of businesses or households affected’. An example of a professional
licence is a liquor licence.

If you are dealing with Personal Licences, select the ‘Leisure’ option and enter the number of licences
in the field ‘Number of businesses or households affected’. An example of a leisure licence is a
recreational fishing licence.
Average annual growth (percentage)
This field requires a figure that reflects the average growth of businesses or households that will be
affected by the proposed regulatory change. For example, if dealing with personal licences, the average
annual growth figure may be in line with population growth. An estimated percentage value is required
(it can be a positive, zero or negative number and decimals are accepted).
Stage 3. Frequency and time
This section is used to determine the difference between current regulatory interventions and proposed
regulatory interventions.
Circumstances of the regulatory change being assessed
Only one option can be selected in this field:

Regulations are continuing in amended form: This option calculates the difference in cost between the
current regulatory requirements and the proposed regulatory requirements. This option will primarily
be used for RCMs. For example, a monthly reporting requirement has been amended and is now only
required quarterly or the reporting requirement has been streamlined to require less information and
consequently takes less time to prepare.

Regulatory requirements are ceasing or lapsing: This option calculates the cost of the current
regulatory requirements which are proposed to be removed. This option will primarily be used for
RCMs. For example, a monthly reporting requirement has been removed.

New regulatory requirements are being introduced: This option calculates the cost of the proposed
regulatory requirements. This is the option that should be used for RISs, even RISs for remade
sunsetting regulations, as it calculates the total cost of a regulatory requirement against the base case
of no regulation. For example, the regulations contain a monthly reporting requirement.
Current regulatory intervention frequency
From the drop down menu select the regulation intervention frequency under the current regulatory
regime. The options include: Annual, Biannual, Quarterly, Monthly, Fortnightly, Weekly, Daily or Other.
If ‘Other’ is selected some new fields will appear in the dialogue box. Fill out the required fields on the
current frequency in terms of either Years, Months, Weeks or Days. Whole numbers must be used in this
field.
Proposed regulatory intervention frequency
If the proposed new intervention is the same frequency as the current regulatory regime, select the check
box. Proceed to the next section by clicking ‘Next’.
If the proposed new intervention is a different frequency to the current regulatory regime, from the drop
down menu select the regulation intervention frequency that is proposed in the regulatory change. The
options include: Annual, Biannual, Quarterly, Monthly, Fortnightly, Weekly, Daily or Other.
If ‘Other’ is selected, fill out the required fields on the proposed frequency in terms of either Years,
Months, Weeks or Days. Whole numbers must be used in this field.
Next
If you selected ‘Business’ as the sector involved in the Purpose tab, you will now be directed to the
Business Time Use questions (stages 4-5).
If you selected ‘Leisure’ as the sector involved in the Purpose tab, you will now be directed to the Leisure
Time Use tab (stage 6).
Stage 4. Business time use: current
The business time use section is used to compare the amount of time and the level of skill of workers
involved in implementing the current and the proposed regulatory process. Note that whole numbers must
be entered in each of the required fields.
Where the level of skill of workers in implementing the regulatory processes is unknown, complete the
“Any Worker” fields.
Under the ‘Business Time Use: Current’ tab, you must enter all information based on the existing regulatory
processes. The first column requires an estimate of how many of each type of worker is involved in the
process under the current framework. The second and third columns require an estimate of the amount of
time that each worker spends on the process.
Stage 5. Business time use: new
This section must be completed based on the new regulatory process. Note that whole numbers must be
entered in each of the required fields.
If there is no change in time between the current and proposed new regulatory requirements, select the
check box and click ‘Finish’. (Note that the remaining text fields will disappear when this is selected.)
Or
If there are changes between the current and proposed changes, proceed to fill out the required fields. The
first column requires an estimate of how many of each type of worker is involved in the process under the
current framework. The second and third columns require an estimate of the amount of time that each
worker spends on the process.
This is the final stage of the calculation. Upon clicking ‘Finish’ the final cost estimation output is generated.
This will open in two tabs of the Excel file. One tab provides the overall figure. The other tab provides the
calculations that underpin the overall figure.
Stage 6. Leisure: time use
The leisure time use section is used to compare the amount of time and the number of households
required to complete the regulatory task under the current and the proposed regulatory processes. Note
that whole numbers must be entered in each of the required fields.
The first column requires an estimate of how many people need to undertake the process under the
current framework. The second and third columns require an estimate of the amount of time that each
individual spends on the process.
If there is no change in time between the current and proposed new regulatory requirements, select the
check box.
This is the final stage of the calculation. Upon clicking ‘Finish’ the final cost estimation output is generated.
This will open in a new tab of the Excel file.
Further assistance
For further assistance on using the time-cost calculator please contact the Regulatory Reform Team in the
Department of Treasury and Finance on 03 9651 2278.