❓ Question regarding the Perth Park project's benefit-cost ratio (BCR) and its sensitivity to capital cost increases. The answer dismisses the question as hypothetical and suggests potential revenue increases could offset cost overruns.
AnsweredQoN 985Legislative Council
Asked
2 December 2025
Member
Portfolio
Deputy Premier; Treasurer; Minister for Transport; Sport and Recreation
QuestionView source ↗
I refer to the ACIL Allen Perth Park Business Case Summary which shows a benefit cost ratio of 1.35 at a 7 per cent discount rate, and a $217.5 million capital cost estimate, and I ask: (a) the benefit cost ratio of 1.35 relies on the project staying within the set budget. If capital costs rise above $217.5 million, by how much would costs need to increase before the ratio drops below one?
AnswerView source ↗
Answered
24 February 2026
Responded by
Parliamentary Secretary to the Deputy Premier; Treasurer; Minister for Transport; Sport and Recreation
Response time
7 days
(a) This is a hypothetical question.
The BCR would also increase, on the basis of increased revenue that goes beyond the conservative assumption.
The BCR would also increase, on the basis of increased revenue that goes beyond the conservative assumption.
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