[Type here] Regulatory Impact Statement Sydney Opera House Trust By-law 2021 A Regulatory Impact Statement of a proposal by the Sydney Opera House Trust to remake the Sydney Opera House Trust By-law 2015 with amendments. The By-law is to be made under the Sydney Opera House Trust Act 1961. The Regulatory Impact Statement has been prepared in accordance with the Subordinate Legislation Act 1989. Date: 12 March 2021 SYDNEY OPERA HOUSE TRUST Table of Contents Executive Summary ................................................................................................................... (i) 1. Introduction ........................................................................................................................... 1 1.1 Purpose of this document .......................................................................................... 1 1.2 What is a RIS? ............................................................................................................. 1 1.2.1 Overview ...................................................................................................... 1 1.2.2 Underlying purpose of the RIS procedure .................................................... 1 1.2.3 RIS contents .................................................................................................. 2 1.2.4 Regulation outcomes ................................................................................... 2 1.2.5 Regulatory burdens ...................................................................................... 3 1.3 Report structure ......................................................................................................... 3 2. Section 1: The Objectives of the proposed By-law .................................................................. 4 2.1 Sydney Opera House ................................................................................................... 4 2.1.1 History of site and building .......................................................................... 4 2.1.2 Sydney Opera House Trust (the Trust) ......................................................... 4 2.1.3 Opera House Mission ................................................................................... 5 2.1.4 Business overview and value........................................................................ 5 2.1.5 Site and venues ............................................................................................ 6 2.1.6 A Decade of Renewal ................................................................................... 6 2.2 Sydney Opera House Trust By-law 2021 ..................................................................... 7 2.2.1 Summary of amendments to the 2015 By-Law ............................................ 7 2.2.2 Outcomes of the By-law ............................................................................... 8 2.2.3 Matters dealt with by the By-law ................................................................. 8 2.2.4 New or amended matters compared to the existing By-law ..................... 11 2.2.4 Other By-law provisions ............................................................................. 16 2.3 Penalties imposed by the By-law .............................................................................. 16 2.4 Penalty Units ............................................................................................................. 17 2.5 Estimated costs of implementing the By-law ........................................................... 17 2.6 Derivation of the objectives of the By-law ............................................................... 18 2.7 Statement of objectives of the By-law ...................................................................... 18 2.8 Means and processes of enforcing the By-law ......................................................... 18 3. Section 2: Impact analysis of the proposed By-law ............................................................... 19 3.1 Identification of affected parties .............................................................................. 19 3.2 The costs and benefits considered are incremental ................................................. 19 3.3 Exclusion of transfer costs ........................................................................................ 19 3.4 Consideration of distributional effects ..................................................................... 20 3.5 Specification and quantification of the relevant benefits ........................................ 20 3.5.1 Tangible direct benefits .............................................................................. 20 3.5.2 Tangible and intangible indirect benefits ................................................... 22 3.6 Specification and quantification of the relevant costs ............................................. 22 3.6.1 Categories of costs ..................................................................................... 22 3.6.2 Tangible direct costs................................................................................... 23 3.6.3 Intangible direct costs ................................................................................ 23 3.6.4 Tangible and intangible indirect costs ........................................................ 23 3.7 Comparison of costs and benefits and assessment of impact of the By-law ............ 23 3.7.2 Intangible costs and benefits ..................................................................... 24 3.8 The Opera House’s ability to meet its objectives ..................................................... 25 3.9 Summary assessment of impact ............................................................................... 25 4. Section 3: Impact analysis of alternatives ............................................................................ 26 4.1 Definition of the alternatives to the proposed By-law ............................................. 26 4.2 ALTERNATIVE 1: Do nothing ..................................................................................... 26 SYDNEY OPERA HOUSE TRUST Table of Contents 4.2.1 Description ................................................................................................. 26 4.2.2 Analysis of Results ...................................................................................... 27 4.3 ALTERNATIVE 2: Use Section 4 of the Summary Offences Act 1988 ........................ 27 4.3.1 Description ................................................................................................. 27 4.3.2 Specification and quantification of benefits .............................................. 28 4.3.3 Specification and quantification of costs ................................................... 28 4.3.4 Analysis of results ....................................................................................... 28 4.4 ALTERNATIVE 3: Use of the Smoke-free Environment Act 2000 .............................. 28 4.4.1 Description ................................................................................................. 28 4.4.2 Specification and quantification of benefits .............................................. 29 4.4.3 Specification and quantification of costs ................................................... 29 4.4.4 Analysis of Results ...................................................................................... 30 4.5 ALTERNATIVE 4: Use general “Conditions of Entry” printed on the back of tickets . 30 4.5.1 Description ................................................................................................. 30 4.5.2 Specification and quantification of benefits .............................................. 30 4.5.3 Specification and quantification of costs ................................................... 30 4.5.4 Analysis of results ....................................................................................... 31 4.6 ALTERNATIVE 5: Use other legislation in place of Clause 10 of the By-law .............. 31 4.6.1 Description ................................................................................................. 31 4.6.2 Specification and quantification of benefits .............................................. 32 4.6.3 Specification and quantification of costs ................................................... 32 4.6.4 Analysis of results ....................................................................................... 32 4.7 Overall comparison and evaluation of relative net costs/benefits of the proposed By-law and its alternatives ....................................................................................... 32 4.8 Justification for selecting or rejecting the proposed 2021 By-law ........................... 32 4.8.1 Effective in meeting the objectives ............................................................ 32 4.8.2 Compliance with the Principles of Better Regulation ................................ 33 5. Section 5: Methodology ....................................................................................................... 35 5.1 Description of the methods used and the assumptions adopted in the analysis ..... 35 5.1.1 Methods used ............................................................................................ 35 5.1.2 Assumptions ............................................................................................... 35 5.2 List of data and information sources used ..............................................................