Section 2 : Resources for 2007-08
The total appropriations and other receipts to be received by CASA in 2007-08 is $139.7m, comprising $112.9m for departmental outputs (including $68.4m from a Special Appropriation), $25.7m revenue receipts from independent sources and $1.0m for departmental capital - refer to Table 2.1 for details.
CASA's total appropriation and other revenue in 2007-08 has increased by $15.7m from the estimated actual for 2006-07. This increase is largely attributable to the following:
- Implementation of the Long-Term Funding Strategy (LTFS) $3.0m
- Increase in regulatory service fees (identity cards) $2.8m
- Office of Airspace Regulation fees $2.6m
- Expense measure - Air transport safety risk mitigation $2.1m
- Expense measure - Aviation industry drug and alcohol testing $2.0m
- Capital measure - Aviation industry drug and alcohol testing $1.0m
- Transport Safety Assistance to Indonesia $2.2m
The LTFS is in response to the Minister's request to put into place a framework aimed at achieving five significant objectives, namely:
- Linking funding to industry activity
- Self sustainability
- No increases in funding from government appropriations (excluding new measures)
- A phased reduction in the fuel excise commencing 2008, and
- Efficient and effective fiscal management.
The LTFS includes the government maintaining the existing rate of excise and customs duty on aviation gasoline and turbine fuel, with 2.854 cents per litre to be appropriated to CASA. Once full cost recovery is in place, it is proposed that revenue from the fuel excise levy will be reduced from the 2008-09 financial year.
Budget measures relating to CASA as explained in Budget Paper No.2 are summarised in Table 2.2.
Further details of the measures listed are published in Budget Paper No.2.
Table 2.3 provides details of other receipts available to be used and includes amounts obtained for the provision of goods and services, Special Accounts (non-appropriation receipts) and resources received free of charge. These estimates are exclusive of GST.
These estimates include receipts from interest on cash deposits and investments and cost recovery arrangements within CASA. For further explanation on CASA's cost recovery arrangements refer to 'Section 4.2 Cost recovery arrangements'.
CASA's functions under the Act include the provision of regulatory services. These encompass issuing certificates, licences, permits and security identification cards to the aviation industry.
CASA, as part of a comprehensive strategy for sustainable long-term funding, initiated progressive full cost recovery of its services in 2005-06. Cost recovery receipts will increase to $21.9m in 2007-08 (from $12.0m in 2006-07) and will increase to $25.5m in 2008-09. These estimates include revenue from Aviation Security Identification Cards (ASIC) / Aviation Identification Cards (AVID) that were not anticipated in the original LTFS cost recovery estimates. Cost Recovery receipts are expected to rise due to the implementation of Phase 3 on 1 July 2008. This is the final phase of cost recovery and will increase fee income for regulatory services to $20.0m per annum (excluding ASIC/AVID cards).
CASA is to receive $2.2m in 2007-08 under a purchaser-provider arrangement with DOTARS to provide services for transport safety assistance to Indonesia.
Table 2.4: Movement of administered funds between years
CASA does not receive administered funds.
The Special Appropriation represents excise and customs duty on aviation gasoline and turbine fuel, which is collected by the Australian Taxation Office and paid to CASA through the Aviation Fuel Revenues (Special Appropriation) Act 1999.
The Government has decided to maintain the existing rate of excise and customs duty on aviation gasoline and turbine fuel, with 2.854 cents per litre to be appropriated to CASA. Once full cost recovery is in place, it is proposed that revenue from the fuel excise levy will reduce from the 2008-09 financial year.
CASA does not maintain Special Accounts.