What is cost recovery?
Cost recovery broadly encompasses fees and charges related to the provision of government goods and services (including regulation) to the private and other non-government sectors of the economy.
In July 2015, the Australian Government introduced the Australian Government Charging Framework, to improve consistency of charging activities and help determine when it is appropriate to charge for a government activity.
The Charging Framework supports the Australian Government’s role in delivering quality public programmes to Australian citizens, communities, and the economy more broadly, by assisting to improve programme funding decisions.
The Charging Framework supports government entities to design, implement and review government charging. The policy applies to all Public Governance, Performance and Accountability Act 2013 agencies.
In accordance with the Charging Framework, the Australian Financial Security Authority (AFSA) has developed a Cost Recovery Implementation Statement (CRIS) to demonstrate the cost recovery model for PPSR activities, to apply from 1 July 2018.
How can fees be changed?
AFSA has legal authority through the Personal Property Securities Act 2009, to impose fees and charges and policy authority to cost recover its insolvency and personal property securities activities.
In the 2007-08 Budget, the Australian Government announced that cost recovery principles would apply to the Personal Property Securities Register (PPSR).
Following a consultation period with stakeholders, any change in fees and charges must be approved by the Attorney-General.
Which fees will change?
The draft PPSR Cost Recovery Implementation Statement includes some fee reductions and some fee increases.
- The fee for a PPSR search will reduce from $3.40 to $2.
- The fee for Registrations & Amendments for less than 7 years will reduce from $6.80 to $6.00.
- The fee for Registrations & Amendments for 7 to 25 years will reduce from $34.00 to $25.00
- The fee for Registrations & Amendments with no end date will reduce from $119.00 to $115.00.
- The fee for searches completed via the AFSA national service centre will increase from $3.40 to $7.00.
Why are some fees going down?
AFSA is required to predict the likely level of transactions and then use that to work out how much the fees would be to deliver the service. We believe that transactions for searches and for registrations and amendments for less than seven years and from seven to 25 years will increase, allowing us to charge a lower fee and still meet our operating costs.
We have also removed the collection of fees to enhance the PPSR.
Why are some fees going up?
The fee for searches conducted by our contact centre have increased because these are more expensive for AFSA to complete, compared to individuals conducting their own searches. On-line services are quicker, easier and cheaper for our users.
AFSA is committed to continuing to enhancing the PPSR and providing information and resources to help users access the PPSR on-line. This will provide a service that is simpler, easier and more cost effective for users. For example, enabling users to conduct searches on their smartphone or other mobile device, is an example of how we’ve continued to tailor our services to support our users.
When will the fees change?
The new fees and charges need to be approved by the Attorney-General. If approved, they will commence from 1 July 2018.
Will stakeholders be consulted about the new fees and charges?
Yes. Information on the new Cost Recovery Implementation Statement has been sent to key AFSA stakeholders.
Stakeholders have until 6pm Wednesday 2 May 2018 to review and comment on the new Cost Recovery Implementation Statement. Comments can be provided to email@example.com.
Where can I find more information?
You can also view the Cost Recovery Implementation Statement on this website.