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APVMA Cost Recovery Arrangements

The APVMA is one of a number of Australian Government regulators funded by fees, charges and levies imposed on the industry it regulates. Chemical companies pay fees for the APVMA to evaluate registration proposals and a levy based on the wholesale sales of chemical products.

New Consultation: Seeking input to the APVMA interim cost recovery arrangements 2012–15

The APVMA has prepared a Cost Recovery Discussion Paper to invite submissions from industry and other interested parties for input to the development of the authority's interim cost recovery arrangements for the period 1 July 2012 until 30 June 2015. A fundamental review of the authority's cost recovery arrangements will be undertaken by the government in parallel with these proposed interim arrangements.

The APVMA is committed to working with industry and stakeholders to identify interim cost-recovery arrangements that are fair, equitable and transparent—and which provide certainty and sustainability for both industry and the APVMA whilst the review is being undertaken (external site) by the Department of Agriculture Fisheries and Forestry (DAFF) .

Background

The current cost recovery arrangements of the Australian Pesticides and Veterinary Medicines Authority (APVMA) were implemented in July 2005, and reviewed in 2008. At this time, the APVMA sought stakeholder input into this process and the Authority released a draft Cost Recovery Impact Statement (CRIS) in December 2008.

In early 2010, the then Minister for Agriculture, Fisheries and Forestry, Tony Burke, decided that a 10 per cent increase in fees would be applied from 1 July 2010, pending development of a revised cost recover impact statement.

The 10 per cent increase applied to the annual fee on product registrations, new application fees for evaluation and approval (category and modular), HGP notification number application and renewal fees, Certificate of Export fees, new GMP licences and database information fees. Levies did not change.  These changes were given effect by a variation to the 2005 CRIS.

At the time of the 10 per cent increase it was announced that the increase was an interim measure and that further changes to the APVMA’s cost recovery arrangements would be considered in the context of expected reforms to the operation of the APVMA.  The intention to introduce reforms was announced in the government’s August 2010 election commitment for the Better Regulation of Agricultural and Veterinary Chemicals. The government announced its intention to proceed with the Better Regulation of Pesticides and Veterinary Medicines in early 2011─details of the proposed reforms and all background information on the reform proposals can be found on the DAFF website.

The government has now decided to undertake a fundamental review of the APVMA’s cost recovery arrangements. This review will be undertaken over the period 2012–14. The review will cover all aspects of the APVMA’s cost recovery arrangements including all relevant design options as well as the current 40/60 (application fee/levy) split.

The APVMA has published a discussion paper that proposes interim cost recovery arrangements for the APVMA. It focuses on ensuring appropriate and sustainable revenue to enable efficient and effective administration of agvet chemical regulation and to minimise risks while the longer-term review is being undertaken. The APVMA is seeking comment from interested parties on a Cost Recovery discussion paper.

The discussion paper also provides information on expected efficiencies flowing from the Better Regulation of Agricultural and Veterinary Chemicals reforms (external site), including those undertaken in 2010 and those to be implemented in 2012.

Related information

Contact

Program Manager, Corporate Services

PO Box 6182
Kingston ACT 2604

Ph: (02) 6210 4844
Fax: (02) 6210 4874

Email: communications@apvma.gov.au