As an example, Council's building permit approvals for August topped $1.92 million, which, through the program, council estimates in real terms means $3.398 will be poured into the Ararat community as a flow on effect.

At Council's last ordinary meeting Cr Ian Wilson explained how the Remplan program can demonstrate the flow on effect of building activity.

''Sometime ago council purchased a computer program called Remplan, which enables council to do a whole range of economic modelling on cause and effects and things that happen to our community,'' he said.

Cr Wilson indicated that Council's building approvals report, when used in conjunction with the Remplan program, highlighted the significant positive benefit to the community and the economic stimulus that takes place during periods of economic activity.

General manager development services Mark Hogan, in a report to council, said from a building approvals total value of $1.921 million it is estimated that the demand for intermediate goods and services would rise by $1.203 million.

''These industrial effects include multiple rounds of flow-on effects, as servicing sectors increase their own output and demand for local goods and services in response to the direct change to the economy,'' he said in the report.

''The increases in direct and indirect output would typically correspond to the creation of jobs in the economy.

''Corresponding to this change in employment would be an increase in the total of wages and salaries paid to employees.

''A proportion of these wages and salaries are typically spent on consumption and a proportion of this expenditure is captured in the local economy. The consumption effects under this scenario are estimated at $0.274 million.

''Total output, including all direct, industrial and consumption effects is estimated to increase by up to $3.398 million.''