Previous Funding Reviews
Changes to the Funding Arrangements for the CAA’s Regulatory Functions 2016-19
The CAA is seeking feedback from those involved in the aviation sector on the discussion document on the Funding Framework for Regulatory Services. This is Phase Two of the CAA’s Triennial Funding Review for the period from 2016-2019.
Proposed Changes to the Funding Arrangements for the CAA’s Regulatory Functions 2016-19 - Phase Two - Consultation (PDF 963 KB) Submissions closed 19 Feb 2016.
Template for Feedback Responses (Word 57 KB)
Template for Feedback Responses (PDF 109 KB)
Questions and Answers (PDF 63 KB) More will be added as the consultation process progresses.
To help you to understand the options outlined in the discussion document, we held a series of consultation workshops in late November and early December 2015 in Wellington, Queenstown, Christchurch, Nelson, Auckland, Hamilton and Palmerston North.
Funding Arrangements Flowcharts
We have developed a set of flowcharts to help you to calculate the impact of the proposed changes to CAA Levies Fees and Charges upon your operations.
Aviation Fuel Levy Proposal
As part of this review, the Ministry of Transport examined a proposal to fund the CAA by way of a fuel excise or a fuel levy.
Analysis of an Aviation fuel levy (PDF 374 KB) Ministry of Transport
As New Zealand’s civil aviation regulator, the Civil Aviation Authority has a statutory obligation under the Civil Aviation Act 1990 to promote civil aviation safety and security and contribute to an integrated, safe, responsive, and sustainable transport system.
The Authority recovers the costs of its regulatory activities through a mix of Government funding, industry levies, hourly charges, and specific fees. Government funding is determined through an annual budgeting process. Fees, charges, and levies are reviewed every three years.
As directed by Cabinet in August 2012, the Authority is expected to provide advice on any recommended changes to existing fees, charges, and levies to the Minister of Transport by 1 July 2015.
The review is focused more on re-balancing the CAA's revenues than on increasing revenue. To enable that, the current funding review project is divided into two stages.
The first stage is focused on the underlying principles of the Authority’s funding framework, and addresses the question, “Who Should Pay?”, and “How should they pay”, for the Authority’s services.
The second stage is focused on answering the question, "How much should they pay?".
In July 2014, the CAA released a discussion document and a set of questions and answers to assist those who wished to provide written responses.
Submissions closed at 5 pm on Mon 25 Aug 2014
Two seminars were held in each of Nelson, Christchurch, Queenstown, Auckland, Palmerston North and Wellington, and over 170 people attended the seminars.
Summary of Issues Raised at Seminars (PDF) - A summary of the issues raised and views expressed during a series of seminars conducted by the CAA, 6 to 15 Aug 2014.
Summary of Issues Raised in Feedback Responses (PDF) on Stage One of the Funding Framework for Regulatory Services 2015-18
New Funding Framework Approved 2012
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.
Further Information as at 2012
- Discontinued CAA Levies and Fees (PDF)
- Consultation Background
- Minister of Transport's Media Release
- CAA Release
- Frequently Asked Questions (PDF)
- Regulatory Impact Statement - Funding an Effective Civil Aviation Authority (PDF)
- Civil Aviation Charges Regulations (No 2) 1991 Amendment Regulations 2012
- Civil Aviation (Safety) Levies Amendment Order 2012
- CAA Funding Business Case and Recommendations (PDF 1.5 MB) - 11 Jul 2012
- Value for Money Review (PDF 1.8 MB) - 28 Feb 2011