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How is the APVMA funded?

28 September 2011

The APVMA is one of a number of Australian Government regulators funded by fees, charges and levies imposed on the industry it regulates. In the APVMA’s case, chemical companies are charged application fees for the APVMA to evaluate registration and approval proposals, an annual fee to maintain a chemical product’s registration and levies based on the wholesale sales of chemical products. These funds are collected by the APVMA, remitted to the Australian Government and returned to the APVMA to pay salaries and to purchase goods and services.

More detail

Australian Government policy provides that agencies should set charges to recover the cost of products and services where it is efficient to do so. For regulatory agencies the objective is to recover the full cost of regulation so that those who create the need for regulation, rather than the general community, bear its costs.

As a regulatory agency, the APVMA is almost fully cost recovered as are a number of other similar agencies operating in different regulatory spheres.

In the APVMA’s case, it charges fees to chemical companies to evaluate applications for product registration and active constituent approval. These fees vary depending on the amount of work the APVMA is required to do. It also charges an annual fee to maintain a product’s registration and imposes a levy on the value of wholesale sales of chemical products.

The APVMA’s total income for 2010–11 was $30.037 million, an increase of $5.258 million (21.22 per cent) from 2010–11. This increase is largely due to the additional government appropriation to fund the Better Regulation reforms as well as an increase in application fee and levy income.

Total operating expenses for 2010–11 were $26.332 million an increase of $0.269 million (1.03 per cent) from 2009–10.

Funds collected through fees and charges is collected by the APVMA and remitted to the Department of Finance and Deregulation. An appropriation is then made to the APVMA. In some cases the Government may provide separate and additional funding to support specific initiatives.

Like other government agencies, the APVMA is subject to Parliamentary, Ministerial and administrative oversight and its staff are members of the Australian Public Service.

Further information

Australian Government Cost Recovery Guidelines (external site)

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Last updated on 28 September, 2011