APVMA cost recovery arrangements

The APVMA is funded by fees, charges and levies imposed on the industry it regulates. Chemical companies pay fees so the APVMA can evaluate registration proposals and renew product registrations, and a levy based on the wholesale sales of chemical products.

Background

The current APVMA cost recovery arrangements were implemented in 2013.

In December 2011, we published a discussion paper that proposed further interim cost recovery arrangements for the APVMA in 2012–15. The paper focused on ensuring appropriate and sustainable revenue to enable efficient and effective administration of agvet chemical regulation and to minimise risks while a longer term first-principles review (external site) is being undertaken by the Department of Agriculture and Water Resources.

The December 2011 discussion paper also proposed a number of changes to the current arrangements for the recovery of costs associated with the assessment of compliance with Good Manufacturing Practice (GMP), which affects manufacturers of veterinary medicines in the Australian marketplace and registrants of imported veterinary products. Following consultation with a number of veterinary medicines industry groups we developed an alternative proposal for the recovery of costs associated with the assessment of compliance with GMP.

This alternative proposal was presented in a supplementary discussion paper on the cost recovery of compliance with GMP (PDF, 465kb), published in May 2012. Submissions closed on 15 June 2012 and have been published online.

A CRIS was then developed based on the two discussion papers and the consultation undertaken.

The then Minister for Agriculture, Fisheries and Forestry approved the CRIS in November 2012.

The cost recovery arrangements commenced on 1 July 2013 as per the cost recovery impact statement

Implementation of the arrangements outlined in this CRIS was intended to coincide with the commencement date of 1 July 2013, as provided in the Agricultural and Veterinary Chemicals Legislation Amendment Bill 2012. Amendments to the Bill in the House of Representatives have since revised this commencement date to 1 July 2014.

Only those fees and charges revised independently of changes to the legislation commenced on 1 July 2013. Fees and charges associated with changes proposed in the Bill have been deferred to coincide with the revised eventual commencement date, as outlined in the original CRIS and the amendment to the cost recovery impact statement.

Recent developments

7 November 2014—Department of Agriculture and Water Resources publishes submissions on the final report into first-principles review of the APVMA's cost recovery arrangements.

1 September 2014—Department of Agriculture and Water Resources calls for submissions on the final report into first-principles review of the APVMA's cost recovery arrangements

3 March 2014—The Department of Agriculture and Water Resources published public submissions (external site) on the consultation paper for the first-principles review of the cost recovery arrangements for the APVMA.

22 November 2013—The Department of Agriculture and Water Resources released a consultation paper on the APVMA’s cost recovery arrangements. The closing date for submissions was 21 February 2014.

24 June 2013—See questions and answers on the new cost recovery arrangements and a summary of fee changes in 2013–14 and 2014–15 (PDF, 286 KB) | (DOC, 158 KB).

First-principles review

The interim cost arrangements outlined above will be in place while the first-principles review of the cost recovery arrangements for the APVMA is undertaken by the Department of Agriculture and Water Resources. This review will examine all existing fees and charges.

The review is focused on the structure of the APVMA’s cost recovery framework. It did not consider the scope and level of the APVMA’s regulatory activities.

In November 2013, the Department of Agriculture and Water Resources released a consultation paper on cost recovery for various activities undertaken by the APVMA.

The consultation paper analysed potential cost recovery options and invited stakeholders to comment on these or to suggest alternative options.

Stakeholders were asked to comment by 21 February 2014.

Contact

Executive Director, Corporate Services

Mail:
PO Box 6182
Kingston ACT 2604

Phone: +61 2 6210 4844
Fax:     +61 2 6210 4874

Email: communications@apvma.gov.au

To protect your privacy, please do not include contact information in your feedback. If you would like a response, please contact us.