Overview
Update: January 2020
The Australian Government has agreed to introduce partial cost recovery arrangements. This updates arrangements for fees set out in the Space Activities Act 1998, and the Space Activities Regulations 2001.
We’ll conduct public consultation on the draft rules to implement partial cost recovery, prior to their finalisation and commencement. The commencement date for fees has not been confirmed at this stage. We’ll notify stakeholders when the consultation process begins.
The charging model will be reviewed in 2022-23 to ensure arrangements are appropriate.
Read more about partial cost recovery for launch and return applications.
Cost recovery for space activities
The Australian Space Agency is consulting the space sector on proposed cost recovery models for approvals, which will commence on or before 31 August 2019.
Following a review of the Space Activities Act 1998, an amendment was passed in August 2018. The Space (Launches and Returns) Act 2018 contains provision for charging fees to apply, transfer or vary certain licences, permits or authorisations. The explanatory memorandum of the amendment indicates that fees will be charged on a cost recovery basis in accordance with the Australian Government Cost Recovery Guidelines.
Cost recovery involves the Government charging the non-government sector some or all of the efficient costs of a specific government activity. The guidelines state that cost recovered activities must be documented in a Cost Recovery Implementation Statement (CRIS). The CRIS should be updated regularly with financial and non-financial performance information.
Effective stakeholder engagement on cost recovery is a key component of the guidelines.
Draft Cost Recovery Implementation Statement
We are seeking comment on a draft Cost Recovery Implementation Statement for the Agency. The draft CRIS:
- provides information on how the Agency proposes to implement cost recovery charges for approvals under the 2018 Act
- contains estimated costs of assessing applications
- contains estimates of demand for approvals under the 2018 Act
- sets out two potential fee models—full and partial cost recovery
Draft cost recovery implementaton statement [PDF 360.6KB]
Draft cost recovery implementaton statement [DOCX 968.1KB]
Why we are consulting
We are seeking comments on any aspect of the draft CRIS, with specific input requested on:
- initial estimates of demand for approvals
- how estimated costs compare to other costs for space-related projects
- any potential impacts from setting the fee amounts
- the impact a decision on a full or partial cost recovery model would have on your business or projects
This feedback will support the Government’s consideration on an appropriate charging model.
Next steps
Before implementing cost recovery processes under the 2018 Act, the Agency must obtain policy approval from the Australian Government to cost recover.
The policy advice from government will be used to draft subordinate legislation (known as rules) on fees, which will be subject to public consultation. While the timing is subject to a number of external factors, it is currently expected that consultation on the rules containing cost recovery will occur in 2019.
Submissions
We welcome submissions on the proposed amendments by 13 December 2018. Submissions will be published on this website unless marked as confidential.
What happens next
Request for comments on the Australian Space Agency's draft Cost Recovery Implementation Statement (CRIS) are now closed. Responses will be used to inform the Agency as it seeks to obtain policy approval from the Australian Government on cost recovery.
Related
- Draft cost recovery implementation statement 360.6 KB (PDF document)
- Draft cost recovery implementation statement 968.2 KB (Office Word 2007 XML document)