Hon. Spagnolo asks about the sensitivity of the Perth Park business case's benefit-cost ratio (BCR) to cost overruns and lower attendance. The answer defends the 7% discount rate and highlights the project's economic benefits as determined by ACIL Allen.

AnsweredQoN 984Legislative Council
Asked
2 December 2025
Portfolio
Deputy Premier; Treasurer; Minister for Transport; Sport and Recreation

QuestionView source ↗

I refer to the ACIL Allen Perth Park Business Case Summary, and I ask: (a) the business case generates a benefit cost ratio of 1.35 at a 7 per cent discount rate. How sensitive is that ratio to cost blowouts or lower event attendance?

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)               The use of a 7 per cent discount rate is an accepted methodology for BCR analysis.
Leading economics firm ACIL Allen independently prepared the business case which found the project would deliver $61 million in economic activity every year - delivering long-term economic and community value, with an undiscounted benefit-cost ratio of 1.84.

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