Chapter 17
Authorising the charging of fees and levies
This is a single section from Chapter 17. Read the full chapter here.
Part 5
How is the levy amount determined?
Legislation must set out the manner by which the levy is determined.
There must be a proper relation between the levy amount charged and the particular objective or function concerned. The amount of a levy imposed on a particular group should be commensurate with the degree of connection between the group and the objective or function concerned. For example, if a levy covers the costs of a regulator, it may be inappropriate to impose a large levy on a group that has little to do with the functions of the regulator.
In some cases, an objective or a function is funded from a mixture of levies and an appropriation (for example, levies may pay for a portion of the costs of a regulator while an appropriation may pay the balance). In this case, the benefits that accrue to the regulated industry should be considered, as should the broader public benefit.