Changes to charges for CASA services – answers to common questions
Why is CASA charging for regulatory services?
CASA is obliged to recover costs for regulatory services in line with the Australian Government's cost recovery policy.
What hourly rates apply to CASA regulatory services?
In response to industry calls for refinements to the user-pays system, CASA reviewed existing charges and moved from the previous two hourly rates to four. The rates reflect the range of skills and expertise required to provide different services.
Following consultation on the changes, the top two hourly rates slightly increased to cover travel expenses, meaning members of the aviation industry are not billed separately for travel costs such as flights or accommodation where a CASA officer is required to travel to provide a regulatory service. Travel time does, however, remain cost recoverable.
The hourly rates are $100, $130, $160 and $190.
The two lowest rates apply to services that are predominantly administrative in nature or require only a small degree of technical skill to provide them.
The top two hourly rates apply where specialist technical expertise is required.
Fixed fees apply for a range of services where appropriate.
When do fixed fees apply?
Fixed fees apply for a range of services. Fixed fees are appropriate where the time taken to provide a service does not vary significantly from one operator to another and a standard can be applied equitably to all applicants.
The minimum fixed fee is $25.
Can people choose the cheapest hourly rate for their work?
No. CASA will determine which hourly rate applies to the provision of particular services based on the skills, expertise and time required to complete them.
How extensively did CASA consult on changes to fees introduced in 2007?
CASA conducted extensive consultation with the aviation industry on changes to fees.
The first stage of consultation began in September 2006 and closed on 31 October. During this time more than 250 people attended a special series of cost recovery forums around Australia and nearly 200 written submissions were lodged with CASA.
A second round of consultation began in December 2006 and closed in January 2007. During this period CASA received nearly 100 additional written submissions.
As a result of this feedback, CASA reviewed and changed some fees. This included either not increasing or, in some cases reducing, certain fixed fees and removing separate fees for domestic travel expenses.
What feedback did CASA receive throughout the consultation process?
Feedback generally focused on concerns about the cost of processing aviation medicals, effects of increased fees on general aviation operations, quality and timeliness of CASA services and charges for CASA travel.
Where possible, some fees were changed to address these concerns. For example, the top two hourly rates increased slightly and members of the aviation industry are no longer be billed separately for domestic travel costs such as flights or accommodation where a CASA officer must travel to deliver a regulatory service.
How much is CASA raising with these fees?
CASA must meet the targets set by the Australian Government to achieve full cost recovery for all regulatory services. These targets are in CASA's government-agreed long term funding strategy.
CASA is, therefore, required to increase cost recovery for regulatory services from the previous $10.5 million a year to $15 million for 2007-08. This amount reflects around 12 per cent of CASA's total funding.
Does CASA charge for domestic travel?
CASA listened to feedback from the aviation industry and no longer charges separately for domestic travel costs such as flights or accommodation where travel by a CASA officer is required to perform a regulatory service.
Instead, the cost of all domestic CASA travel is covered by a small increase in the top two hourly rates.
This ensures that members of the aviation industry operating from regional or remote areas are not financially disadvantaged.
The time it takes CASA officers to travel to deliver a regulatory service continues to be charged at the relevant hourly rate.
To keep these costs to a minimum, CASA employees are instructed to schedule regulatory and surveillance activities in the same area wherever possible. Travel time is then pro-rated across all planned activities according to the time spent on each activity, resulting in savings for operators requiring regulatory services.
Does CASA charge for overseas travel?
Where a CASA officer is required to travel outside Australia to perform a regulatory service, full travel costs are chargeable in addition to the time required to perform the service.
What fees apply for flight crew licensing services?
A charge of $25 is payable for printing a flight crew examination record or a copy of a flight crew licence. A charge of $25 is also be payable for reprinting an updated flight crew licence.
You will also need to pay a $25 fee if you wish to obtain an updated copy of your licence showing initial or renewed rating details or a new aircraft endorsement.
Do I have to get an updated copy of my licence if I gain a new rating or endorsement?
You are not obliged to get an updated copy of your licence showing initial or renewed rating details or a new aircraft endorsement.
In deciding whether or not you wish to obtain an updated licence, you should keep in mind that you are not legally required to maintain a current copy of your licence in order to exercise the privileges conferred by any rating or endorsement which you have obtained.
As long as they have been validly entered in your log book by a CASA delegate (such as an Approved Testing Officer or CASA officer) you are free to exercise the privileges conferred by those ratings and endorsements.
If you intend to undertake flying operations outside of Australia (either employed by a foreign airline or an Australian airline operating international flights), you should make your own enquiries about whether you need to carry an up to date Australian flight crew licence.
What fees apply to ASICs?
Fees for ASICs include charges for background checking by security agencies.
View charges for AVIDs and ASICs.
How much does CASA charge for medicals?
Medical fees are charged at a fixed rate of $75. This rate reflects the time and resources required to provide the service.
What is being done to improve CASA's licensing and registration processes?
CASA has been working actively with industry to improve service levels across the spectrum of licensing and registration services. Feedback already received from several flying schools is that significant improvements in the licensing system are already evident by reductions in the time it takes to issue licences.
CASA is continuing to look for new and more efficient ways of delivering these services.
What else is CASA doing to improve the service it provides?
With the introduction of fees for CASA services, the aviation industry expects an improved level of efficiency.
CASA has implemented a range of initiatives designed to improve the service it delivers and to ensure applications are processed in a timely manner.
Minimum service delivery standards have been introduced for all of CASA's business areas. This means there are now standards governing the quality of service you can expect to receive and the length of time it should take for a service to be completed.
CASA will, of course, continue to look for new and more efficient ways of doing business.
How have the fees been set?
CASA engaged the services of external consultants to help develop a detailed cost model which was then used to determine fee rates, based on the cost and time required to complete services. This costing process derived hourly rates for each of CASA's regulatory services, which were then rationalised to four hourly rates to reduce complexity and excessive administration.
How will CASA raise the extra $4.5 million required under this stage of cost recovery?
The additional revenue will come from a number of the changes. The
current fees more accurately reflect the real cost to CASA of providing
regulatory services. New cost modelling has allowed CASA to develop
fees that are closely based on the time and resources it takes to
provide specific services. This means some fees have risen and others
have fallen.
Some services that previously attracted fixed fees moved to higher,
hourly charges. Again, this more accurately reflects the time
and resources it takes CASA to provide these services.
Finally, CASA's cost recovery processes and systems are being improved
and streamlined to ensure all revenue is collected efficiently and within
appropriate timeframes.
What is happening with the fuel excise and taxes? Are people being charged twice?
Nobody is charged twice. CASA is charging for regulatory services only. Fuel excise and government appropriation fund CASA's many other activities, including safety promotion, education and surveillance.
Is CASA making a profit?
No. CASA is required to recover costs for the provision of regulatory services only and does not make a profit from cost recovery.
Is CASA moving towards full cost recovery for all of its activities?
No. CASA is not moving towards full cost recovery for everything we do, but rather towards full cost recovery for regulatory services.
CASA's other functions will continue to be funded via a combination of the fuel excise and government appropriation.