of the CRIS. Two schedules are attached which provide the specific details, cost base, levies and fees for each of the plant export certification cost recovery arrangements: Attachment A Grain (including seed products and forestry) — Attachment B Horticulture — Why is cost recovery appropriate? Cost recovery fees and levies fall within the Australian Government’s (the government) broader charging framework. charges in this framework include commercial charges and resource charges. The type of charge is determined by the characteristics of the services. The use of commercial charging is not appropriate as this approach relies on competitive markets. While the private sector can undertake some export certification activities, the government must provide the export certification framework. This is because it relies on negotiated arrangements with other countries. Resource charging is not appropriate, as export certification is not based on the value of the activity to the recipient. The only viable alternative to cost recovering for export certification is funding this activity through consolidated revenue (general taxation). In most circumstances, however, general taxation is only appropriate for services that are provided to the wider community. Export certification services are provided to a clearly identifiable group—individuals and organisations that participate in the plant export supply chain. If it were not for the business activities of this group, export certification would not be required. There are additional benefits to funding export certification through cost recovery. When a business pays for the activities it receives, the government has an obligation to justify the prices it charges. Cost recovery also increases the cost consciousness of clients of how much a government activity actually costs. For these reasons, the government has determined cost recovery to be the most appropriate mechanism for funding export certification. The department has designed cost recovery of export certification services to be consistent with the Australian Government Cost Recovery Guidelines (CRGs). These provide the overarching framework under which government entities must design, implement and review cost recovery.
of the CRIS. Two schedules are attached which provide the specific details, cost base, levies and fees for each of the plant export certification cost recovery arrangements: Attachment A — Grain (including seed products and forestry) Attachment B — Horticulture Why is cost recovery appropriate? Cost recovery fees and levies fall within the Australian Government’s (the government) broader charging framework. charges in this framework include commercial charges and resource charges. The type of charge is determined by the characteristics of the services. The use of commercial charging is not appropriate as this approach relies on competitive markets. While the private sector can undertake some export certification activities, the government must provide the export certification framework. This is because it relies on negotiated arrangements with other countries. Resource charging is not appropriate, as export certification is not based on the value of the activity to the recipient. The only viable alternative to cost recovering for export certification is funding this activity through consolidated revenue (general taxation). In most circumstances, however, general taxation is only appropriate for services that are provided to the wider community. Export certification services are provided to a clearly identifiable group—individuals and organisations that participate in the plant export supply chain. If it were not for the business activities of this group, export certification would not be required. There are additional benefits to funding export certification through cost recovery. When a business pays for the activities it receives, the government has an obligation to justify the prices it charges. Cost recovery also increases the cost consciousness of clients of how much a government activity actually costs. For these reasons, the government has determined cost recovery to be the most appropriate mechanism for funding export certification. The department has designed cost recovery of export certification services to be consistent with the Australian Government Cost Recovery Guidelines (CRGs). These provide the overarching framework under which government entities must design, implement and review cost recovery.
draft-plant-export-cris.docx