The APVMA has prepared a Cost Recovery Discussion Paper to invite submissions on the development of the authority’s interim cost recovery arrangements for the period 1 July 2012 until 30 June 2015.

The current APVMA cost recovery arrangements were implemented in July 2005, and reviewed in 2008. In July 2010, a 10 per cent increase in fees was applied pending development of a revised cost recover impact statement.

A fundamental review of the authority’s cost recovery arrangements will be undertaken by the Department of Agriculture, Fisheries and Forestry in consultation with the APVMA and the Department of Finance and Deregulation during the period the interim cost recovery measures are in place. 

The APVMA in a media release have identified the key proposed changes as:

• Indexation of fees

• Restoring the 40/60 split (application fees return to 40 per cent cost recovery, with a complementary reduction in levy rates).

• New arrangements for annual fee(s) to cover post-market costs—compliance and enforcement activities, chemical review and the adverse experience reporting program (with an associated reduction in levy rates).

• Introduction of a fee for the Continuation Scheme.

• 100 per cent cost recovery for Category 17 (imaged active constituents)—because they are not directly sold and therefore assessment costs cannot be recovered through the levy.

• The repayment of $2 million for the better regulation reforms (to be repaid in future years).

The Cost Recovery Discussion paper can be viewed by following the following this link to the APVMA website.