Government commitment (paid Strong incentive to establish Match other functions equally through LRB rather than levy levies within industry within existing cap system) Bias towards R&D levies Remove matching R&D funding Matching funding for new levies (not supported by stakeholders) Department cannot fund levy is required to be offset by the without efficiency gains or Separate matching R&D from Department. reduced services elsewhere Department’s operational budget Debate on what the matching Reduce the proportion of funds dollar should be used for and matched (e.g. match 50%) and who decides with LRBs allocate through other means Issue: Levy establishment cost Establishment requires industry Levy potential not realised Offer recoup of costs if capability and funding to “pass a successful from levy revenue Preferences well-resourced reasonable test” (Levy Principles industries and PIBs Two systems: if the industry is and Guidelines (LPG)) not able to afford the cost of Industries may not have establishing a levy – offer an resources to establish levy alternative Issue: Establishment criteria LPG are not in plain English Variable interpretation incurs Update LPG in plain English unnecessary cost and LPG collection lacks sufficient Tighter definition inconsistent application guidance on tasks and criteria to More clarity less prescription establish (and review) levies Sets an implicit industry Provide templates/pro formas, maturity (levy readiness) Potential levy payers are not case studies and examples to threshold fully known increasing cost assist industries in making an May result in some industries application not establishing levies where Dedicated and knowledgeable there is a net benefit department staff to assist with levy establishment and review Issue: Levy are tailored and must be designed and agreed upfront Levy rate, collection instrument, Levy is fit for purpose Move to one levy and establish estimated revenue, functional allocation function elsewhere Trade-off between willingness to allocation, and recipient body pay and need creates Create mechanisms for dynamic must be defined upfront insufficient or surplus funds for adjustment function Keep levies tailored as one size Fixes allocation to functions does not fit all limiting dynamic adjustment of levy mix Issue: PIB and levy payer rights and obligations unclear, misunderstood and inconsistent
Government commitment (paid through LRB rather than levy system) Matching funding for new levies is required to be offset by the Department. Strong incentive to establish levies within industry Bias towards R&D levies Department cannot fund levy without efficiency gains or reduced services elsewhere Debate on what the matching dollar should be used for and who decides with LRBs Match other functions equally within existing cap Remove matching R&D funding (not supported by stakeholders) Separate matching R&D from Department’s operational budget Reduce the proportion of funds matched (e.g. match 50%) and allocate through other means Issue: Levy establishment cost Establishment requires industry capability and funding to “pass a reasonable test” (Levy Principles and Guidelines (LPG)) Industries may not have resources to establish levy Levy potential not realised Preferences well-resourced industries and PIBs Offer recoup of costs if successful from levy revenue Two systems: if the industry is not able to afford the cost of establishing a levy – offer an alternative Issue: Establishment criteria LPG are not in plain English LPG collection lacks sufficient guidance on tasks and criteria to establish (and review) levies Potential levy payers are not fully known increasing cost Variable interpretation incurs unnecessary cost and inconsistent application Sets an implicit industry maturity (levy readiness) threshold May result in some industries not establishing levies where there is a net benefit Update LPG in plain English Tighter definition More clarity less prescription Provide templates/pro formas, case studies and examples to assist industries in making an application Dedicated and knowledgeable department staff to assist with levy establishment and review Issue: Levy are tailored and must be designed and agreed upfront Levy rate, collection instrument, estimated revenue, functional allocation, and recipient body must be defined upfront Levy is fit for purpose Trade-off between willingness to pay and need creates insufficient or surplus funds for function Fixes allocation to functions limiting dynamic adjustment of levy mix Move to one levy and establish allocation function elsewhere Create mechanisms for dynamic adjustment Keep levies tailored as one size does not fit all Issue: PIB and levy payer rights and obligations unclear, misunderstood and inconsistent