New Funding Framework Approved
Government has approved a new funding framework for the Civil Aviation Authority that came into effect on 1 November 2012.
The CAA began the formal process of reviewing its funding in 2010 and consulted on a set of options. The new framework is similar to the preferred option in that consultation.
The old framework did not meet the costs of the CAA and contained a number of cross-subsidies. The government believes that those who choose to fly, or operate airlines and aircraft, should meet the full cost of regulating these operations. The new framework moves toward full cost recovery for most services.
Key changes include:
- Increasing fees for items such as licences, ratings, aircraft registration and the participation levy.
- The progressive increase, over three years, of hourly charges for surveillance and certification functions - $208 (incl GST) in year one to $284 (incl GST) in the year three.
- Introducing three new fixed fees for processing a medical certificate application, deregistration of a foreign-owned aircraft, and a registration under the Cape Town Convention.
- Moving towards equalising the rate for the domestic passenger safety levy and the departing international passenger safety levy, by reducing the domestic levy to $1.97 (incl GST) and increasing the international levy to $1.50 (incl GST).
- Revoking the aeronautical information services levy and funding the related costs from passenger safety and participation levies.
- Reducing the Australia New Zealand Arrangement levy discount (increasing the levy to $1.78 incl GST) as hourly charges move towards reflecting full costs.
The approval of the framework marks the latest in a series of actions aimed at resolving an unsustainable funding situation and achieving a ‘step change’ in the CAA’s performance. A number of reviews said the CAA was falling behind modern practice and having difficulty keeping pace with growing sector demand and complexity.
In response to feedback from the aviation industry, the new framework was not progressed until the CAA had addressed effectiveness and efficiency issues, and started a process to improve its performance. It has been undertaking a significant change programme since 2011.
- New Fees, Levies and Charges
- Discontinued CAA Levies and Fees
- Consultation Background
- Minister of Transport's Media Release
- CAA Release
- Frequently Asked Questions
- Regulatory Impact Statement - Funding an Effective Civil Aviation Authority
- Civil Aviation Charges Regulations (No 2) 1991 Amendment Regulations 2012
- Civil Aviation (Safety) Levies Amendment Order 2012
- CAA Funding Business Case and Recommendations (1.5 MB) - 11 Jul 2012
- Value for Money Review (1.8 MB) - 28 Feb 2011