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Cost recovery arrangements

Cost recovery charges are applied to applications that result in either an exclusive, capturable commercial benefit for the applicant (mandatory) or where an applicant seeks to have priority given to an application in the FSANZ Work Plan. The cost recovery regime is established by the FSANZ Act and the charges and related arrangements are set in the FSANZ Regulations.  

Cost recovery reviews

2012–2016

Update (March 2017)

The final CRIS was amended following the call for submissions and was certified by the FSANZ Board in March 2017. It will be published on this page following approval by the Assistant Minister for Health. Stakeholders will be kept advised when Ministerial approval has occurred and again once the date of effect of any subsesquent amendments to the FSANZ Regulations is known. 
 

Call for submissions on draft CRIS (December 2016)

Since 2012, FSANZ has reviewed its costs on an annual basis.  In addition, the Australian Government's cost recovery policy now requires that FSANZ prepare a Cost Recovery Implementation Statement (CRIS) to be published on the web and regularly updated. The purpose of a CRIS is to provide information on how FSANZ determines and applies its cost recovery arrangements. It also reports on financial and non-financial performance information for cost recovery and includes financial forecasts for the current and three forward years.

FSANZ will update its CRIS whenever there are further changes to its cost recovery arrangements e.g. fee structure or methodology or updates to the reported financial or non-financial information and key dates.

The draft CRIS proposed a number of changes to FSANZ's cost recovery arrangements:

  • an increase in the hourly charge to more accurately reflect the true cost to FSANZ of assessing applications
  • changes to the levels within the general procedure to reduce up-front costs for certain applications and to extend the ability to pay fees in instalments
  • a large reduction to the administrative charge
 

2011–2012

The review included a proposed increase in the hourly charge and the new methodology to calculate that charge, as well as amendments to the maximum hours for each category within the General Procedure.
 
Submissions were received on a consultation paper ​(pdf 635 kb)(word 405 kb) and were considered by FSANZ. 
 
 
A summary of all submitter comments and FSANZ’s response to those comments is included in the final report (pdf 391 kb)(word 1070 kb) considered by the FSANZ Board addressing both the review and the new arrangements for health claims applications.

Cost recovery arrangements for health claims applications

FSANZ considered cost recovery arrangements for applications to amend permitted health claims in Standard 1.2.7.
Submissions were received on a supplementary consultation paper (pdf 157 kb) | (word 471 kb) and were considered by the FSANZ Board.
 
 
The supplementary consultation paper should be read in conjunction with the consultation paper above relating to the review of FSANZ’s existing cost recovery arrangements. The current cost recovery arrangements were consequently applied to health claims applications.

Charges for registration of legislative instruments

At the beginning of each financial year, FSANZ is charged an annual fee by the Federal Register of Legislation (FRL) based on two measures: the number of pages lodged on FRL in the previous calendar year; and also those in force at a specific date in the first half of the current calendar year. Once it has received advice on its annual fee and the cost per page across government, FSANZ will then apply the total cost per page and apply that to the number of pages resulting from each application – to cover any instruments, explanatory statements and compilations – lodged in the following financial year.

These arrangements mean that each year the cost per page will vary. 

For 2016–2017, the combined cost per page for FSANZ is AUD7.84, a reduction on the 2015–2016 charge of $AUD8.80. This figure has been arrived at as follows:

Component A (based on pages lodged in 2015)

2,642 pages

0.5% of the total for all portfolios

Cost per page across whole of government: AUD1.68

Component B (based on pages in force on 1 January 2016)

4,937 pages

1.1% of the total for all portfolios

Cost per page across whole of government: AUD6.16

Combined cost per page:  $7.84

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