COST RECOVERY IMPLEMENTATION STATEMENT - PERSONAL PROPERTY SECURITIES REGISTER - the PPSR
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
COST RECOVERY
IMPLEMENTATION STATEMENT
PERSONAL PROPERTY SECURITIES REGISTER
Effective 1 July 2018
Cost recovery involves government entities charging individuals or non-
government organisations some or all of the efficient costs of a regulatory
activity. This may include goods, services or regulation, or a combination of
them. The Australian Government Charging Framework1, which
incorporates the Cost Recovery Guidelines, sets out the framework under
which government entities design, implement and review regulatory
charging activities.
1
The Australian Government Charging Framework and the CRGs are available on the Department of Finance
website (www.finance.gov.au).PPSR COST RECOVERY IMPLEMENTATION STATEMENT - AFSA CONTENTS CONTENTS.......................................................................................................................... 2 INTRODUCTION .................................................................................................................. 3 PURPOSE OF THE CRIS ....................................................................................................... 3 DESCRIPTION OF THE REGULATORY CHARGING ACTIVITY.......................................................... 3 POLICY AND STATUTORY AUTHORITY TO COST RECOVER .......................................... 5 GOVERNMENT POLICY APPROVAL TO COST RECOVER THE REGULATORY ACTIVITY ....................... 5 STATUTORY AUTHORITY TO CHARGE ...................................................................................... 5 COST RECOVERY MODEL ................................................................................................. 6 OUTPUTS AND BUSINESS PROCESSES OF THE REGULATORY CHARGING ACTIVITY ........................ 6 COSTS OF THE ACTIVITY ....................................................................................................... 6 VOLUME FORECASTS ........................................................................................................ 7 FINANCIAL RESERVES ....................................................................................................... 8 STAKEHOLDER ENGAGEMENT ....................................................................................... 10 FINANCIAL ESTIMATES .................................................................................................... 10 FINANCIAL PERFORMANCE............................................................................................. 11 NON-FINANCIAL PERFORMANCE .................................................................................... 11 RISK ASSESSMENT .......................................................................................................... 12 KEY FORWARD DATES AND EVENTS ............................................................................. 13 CRIS APPROVAL AND CHANGE REGISTER .................................................................... 14 ANNEX A: PROPOSED ACTIVITIES AND SCHEDULED CHARGES ................................. 15 ANNEX B: LEGISLATIVE AUTHORITY TO CHARGE ......................................................... 17 ANNEX C: VOLUMES RELATING TO EACH CHARGE ...................................................... 18 ANNEX D: ACTUAL VS FORECAST VOLUMES VARIANCE FOR PAST YEARS............... 19 5/4/2018 www.afsa.gov.au Page 2 of 19
PPSR COST RECOVERY IMPLEMENTATION STATEMENT - AFSA
INTRODUCTION
PURPOSE OF THE CRIS
This Cost Recovery Implementation Statement (CRIS) provides stakeholders with information on how
the Australian Financial Security Authority (AFSA) implements cost recovery for the Personal Property
Securities Register (PPSR). The document seeks to demonstrate the link between the price charged
for a PPSR service and cost of the effort to deliver the activity.
This CRIS also reports financial and non-financial performance information for the PPSR and contains
financial forecasts for 2018-19 and three forward years. AFSA will maintain the CRIS until the activity
or cost recovery for the activity has been discontinued.
DESCRIPTION OF THE REGULATORY CHARGING ACTIVITY
Background
AFSA’s policy outcome on behalf of the Australian Government is to:
Maintain confidence in Australia’s personal insolvency and personal
property securities systems through delivering fair, efficient and
effective trustee and registry services, and risk-based regulation.
This policy outcome is delivered through two separate programs:
1. Personal Insolvency and Trustee Services; and
2. Operation of a National Register of Security Interests in Personal Property.
The funding of these two programs is managed separately and this is reflected in a separate CRIS
for the activities of each program. This CRIS focuses only on the PPSR activities. PPSR activities are
100% cost recovered, with the revenue retained by AFSA. AFSA does not receive appropriation
funding for the PPSR.
Under the Personal Property Securities Act 2009 (PPS Act), the PPS Registrar is responsible for the
operation of the PPSR. AFSA has operational responsibility for administration of the PPSR. AFSA’s
Chief Operating Officer holds the position of PPS Registrar. The Attorney-General’s Department has
responsibility for the Personal Properties Securities (‘PPS’) policy and legislation.
The PPSR is a national online register that offers important consumer protection. Consumers and
businesses can check whether any valuable goods are free from existing financed debt and safe
from possible repossession, before they purchase.
Businesses that sell on retention of title or consignment, or hire or lease out goods for more than
two years, can register to protect their security interest in case a customer becomes insolvent.
Businesses can also use their assets as collateral to raise finance.
The PPSR covers goods and assets that are not land, buildings or fixtures, such as motor vehicles,
boats, crops, livestock and other items.
5/4/2018 www.afsa.gov.au Page 3 of 19PPSR COST RECOVERY IMPLEMENTATION STATEMENT - AFSA
Key Activity Groups
Operation of the PPSR can be categorised into two key activity groups:
1. Registrations - security interests over personal property (not land, buildings or fixtures) can be
registered, amended and discharged on the PPSR; and
2. Searches - clients can search the PPSR to ascertain if a security interest is held relating to a
specific person or item of personal property.
These two activity groups are derived from AFSA’s responsibility for administration of the PPS Act,
as it relates to the register, and the provision and maintenance of the necessary systems and
processes that allow users to access the Register in order to:
register financing statements (the term for data which is to be registered)
amend existing financing statements
discharge financing statements
search the register
obtain a copy of the full search results.
AFSA makes the online environment available 24/7. It also develops and maintains the processes
required to ensure high quality data on the PPSR.
Stakeholders
Based on historical data, PPSR stakeholders fall into the following categories:
Fee-paying stakeholders (end users):
Registrations
Secured parties (creditor, lender, supplier or lessor) lodging security interests over personal
property.
Searches
Parties interested in the security position of personal property.
Non-fee paying stakeholders
Debtors and Grantors
Parties who must pay or perform the primary obligation(s) owed to the creditor or party
making the relevant advances/loans.
Other parties who have interests in secured assets being used as collateral.
Charging Context
Charging for PPSR activities is in accordance with the Australian Government Charging Framework
(‘the Charging Framework’). The Charging Framework encompasses the Australian Government
Cost Recovery Guidelines which together help to deliver the following:
Promote equity, whereby the recipients who create the need for a government activity, rather
than the general public, bear its costs:
5/4/2018 www.afsa.gov.au Page 4 of 19PPSR COST RECOVERY IMPLEMENTATION STATEMENT - AFSA
Influence demand for government activities;
Improve the efficiency, productivity and responsiveness of government activities and
accountability for those activities; and
Increase cost consciousness for all stakeholders by raising awareness of how much a
government activity costs.
Proposed Changes to Fees and Charges
A schedule of proposed charges effective 1 July 2018 is attached as Annex A.
Changes to fees and charges have broadly resulted from the following:
Increased search and registration volumes reducing the per unit cost;
Decreased costs including delayed replacement of the PPSR system; and
Cessation of funding recovery for enhancements due to retained balance of this reserve.
The delay in the replacement of the PPSR system itself resulted from the Digital Transformation
Agency reforms, specifically relating to ICT projects over $10 million dollars and the associated
risk. These reforms prompted an independent review of the system which concluded that the existing
system was capable of being significantly enhanced. Improving useability and implementing
legislative reform in relation to the PPSR could be undertaken via incremental system enhancement,
thereby enabling AFSA to manage and mitigate overall implementation risk more effectively.
POLICY AND STATUTORY AUTHORITY TO COST RECOVER
GOVERNMENT POLICY APPROVAL TO COST RECOVER THE
REGULATORY ACTIVITY
The Australian Government’s policy since the establishment of the PPSR, announced in the 2007-08
Budget, is for its operation to be fully cost recovered. The proposed charges to be introduced effective
from 1 July 2018 will ensure that the full cost base of the PPSR is recovered.
STATUTORY AUTHORITY TO CHARGE
The statutory authority for AFSA’s fees is provided under Section 190 of the PPS Act which provides
that the Minister (the Attorney-General), may by legislative instrument, determine fees for registration
and search services. Details of the current fees will be set out in the Personal Property Securities
(Fees) Determination 2018 (when approved) and made available at www.comlaw.gov.au .
The specific legislative provisions for each of AFSA’s proposed charges are detailed in Annex B.
The PPSR fees are not subject to Goods and Services Tax (GST) under A New Tax System (Goods
and Services Tax) Act 1999 and A New Tax System (Goods and Services Tax) Amendment
Regulations 2013 (No.2).
5/4/2018 www.afsa.gov.au Page 5 of 19PPSR COST RECOVERY IMPLEMENTATION STATEMENT - AFSA
COST RECOVERY MODEL
OUTPUTS AND BUSINESS PROCESSES OF THE REGULATORY
CHARGING ACTIVITY
As described in the section ‘Key Activity Groups’ of this CRIS, the ultimate objective of the PPSR is
to facilitate the registration of security interests and the ability to search the PPSR to ascertain if a
security interest is held relating to a specific person or item of personal property.
AFSA’s involvement at the transaction-level in the vast majority of the actual registrations and
searches is by providing automated internet-based processes. AFSA’s efforts (and costs) are
focused toward operating, maintaining, and enhancing the PPSR infrastructure and functionality.
COSTS OF THE ACTIVITY
Overview of Costs
The proposed charges reflect the cost of effort to deliver PPSR services. AFSA utilises an Activity-
Based Costing (ABC) model for calculating the costs of the processes required to deliver the activities
provided. The ABC model is built utilising a work effort survey for each activity, ensuring that
resources dedicated to maintaining service level standards are appropriately captured against
relevant charges.
AFSA costs are assigned to each activity either as a direct or indirect cost as described in the following
sections. A summary of assigned costs is noted below.
Cost Type Category % Description
ICT 41 Depreciation and amortisation of the PPSR software and infrastructure,
infrastructure operating costs, service providers and other ICT personnel
directly attributable to the PPSR.
Direct Corporate 0 N/A
Business 18 Contact Centre support staff and other PPSR-related business areas.
ICT 10 Expenses relating to support of corporate IT systems.
Indirect Corporate 31 Corporate costs including management, finance, legal, communications,
property and human resources.
Business 0 N/A
TOTAL 100
Direct Costs
Direct costs are assigned where they can be directly traced to an activity. By analysing each team’s
structure and processes, costs such as direct employee expenses and direct supplier costs were
identified and attributed to the relevant activity.
A detailed analysis of ICT costs was undertaken which identified direct costs associated with each
5/4/2018 www.afsa.gov.au Page 6 of 19PPSR COST RECOVERY IMPLEMENTATION STATEMENT - AFSA
activity. These include the operational costs of supporting applications, dedicated servers and ICT
infrastructure dedicated specifically to operating the PPSR. Costs were allocated by identifying
storage capacity, length of processes and activity volumes.
Indirect Costs
Indirect costs represent all costs that cannot be directly attributed to a specific process. These costs
are typically corporate functions, infrastructure operational costs and management responsibilities
related to PPSR activities.
Indirect costs have been allocated into a number of cost pools, based on either staff, capacity or
volume-driven cost drivers. The choice between using staff, capacity or volume based drivers has
been determined with reference to the functions of the cost pools.
Examples of the PPSR-related cost pools which are treated as indirect costs are:
PPSR Statistics & Corporate Reporting
PPSR Information Management
PPSR Communications
PPSR Media
PPSR Corporate Publications
PPSR Web Content.
Corporate costs allocated on a FTE basis include property and certain human resources activities. A
calculation is made of the proportion of workforce effort dedicated to each of AFSA’s major business
processes. The full costs of these particular teams will be apportioned to both insolvency and PPSR
activities within AFSA. Other corporate costs such as finance and ICT are allocated using a
combination of FTE, capacity and volumes where applicable. An example of finance costs that are
volume driven in the allocation of costs to business processes are Treasury. ICT costs identified as
volume driven include items such as Servers and Data Storage.
Relationship between Depreciation and Capital Expenditure
Depreciation of AFSA’s fixed assets, and amortisation of AFSA’s intangible assets, are subsets of
both the direct and indirect costs above.
The proposed charges presented in this CRIS are costed to cover all of AFSA’s operating costs,
including depreciation and amortisation of assets. Depreciation and amortisation are used as a proxy
for the likely capital expenditure required for the replacement of assets in future.
VOLUME FORECASTS
Charges for each PPSR activity are derived by applying forecast volumes against the respective
costs. The proposed fees utilise 2018-19 forecast volumes.
Past trends have been overlaid against expected economic conditions over the foreseeable future to
arrive at the quoted volume forecasts contained within this CRIS document. Details of forecast
volumes are outlined in Annex C.
5/4/2018 www.afsa.gov.au Page 7 of 19PPSR COST RECOVERY IMPLEMENTATION STATEMENT - AFSA
Material changes in volumes will be addressed through a new CRIS. All activity movements will be
assessed annually for impacts on costings to ensure compliance with the charging framework i.e. that
charges reflect the efficient cost of service.
The demand for AFSA’s activities, and therefore AFSA’s revenue stream, is sensitive to market
fluctuations. The operating costs of the PPSR are predominantly fixed costs. The scenario of variable
revenue and fixed costs increases the risk of AFSA either over-recovering or under-recovering
revenue to match the PPSR operating costs. AFSA continuously monitors PPSR revenue to ensure
charging is appropriate.
Volumetric Past Performance
Annex D provides a historical view of the volumetric performance against each category in order to
highlight the areas that have contributed to the over recovery to date. As outlined earlier within this
same document PPSR is a relatively new system having been introduced in 2012 and as such the
level of data that was available in its infancy to accurately project activity into the out years was very
limited. Price adjustments and volumetric updates have been progressively made since 2012 (via
new CRIS documents) as trends emerge.
Historical and Proposed Charges
AFSA publishes all relevant charges, along with current and previous CRISs on the ‘cost recovery’
page on its website at the following address:
http://www.ppsr.gov.au/AbouttheRegister/AboutFees/Pages/CostRecoveryImpactStatement.aspx
FINANCIAL RESERVES
The total funds held by AFSA comprise of the Capital Investment Reserve (CIR) and the Cost
Recovery Operating Reserve (CROR).
Capital Investment Reserve
Since commencement of the PPSR, AFSA has recovered funds for enhancement and replacement
of PPSR assets. These funds are set aside in the CIR. The historical accumulated balance of the
CIR is detailed in Table 1.
Table 1
2013-14 2014-15 2015-16 2016-2017
’000 ’000 ’000 ’000
Opening Capital Investment
$6,653 $7,800 $15,398 $25,193
Reserve
Depreciation Contribution $12,664 $13,891 $13,446 $10,112
Investment expenditure -$11,517 -$6,294 -$3,651 -$3,805
Closing Capital Investment
$7,800 $15,398 $25,193 $31,501
Reserve
5/4/2018 www.afsa.gov.au Page 8 of 19PPSR COST RECOVERY IMPLEMENTATION STATEMENT - AFSA
The forward projections for the CIR are detailed in Table 2.
Table 2
2017-18 2018-19 2019-20 2020-21 2021-22
’000 ’000 ’000 ’000 ’000
Opening Capital Investment $31,501 $30,301 $29,817 $27,065 $19,313
Reserve
Depreciation Contribution $3,000 $5,378 $5,378 $5,378 $5,378
Investment Expenditure -$4,200 -$5,862 -$8,130 -$13,130 -$16,170
Closing Capital Investment $30,301 $29,817 $27,065 $19,313 $8,521
Reserve
The major expenditure from CIR over the forward years will be the enhancement of the PPSR and
associated infrastructure. The options for replacement are under review and outcomes will determine
the capital requirements in later years. If AFSA is holding excess funds, strategies will be considered
to realign CIR balances.
Cost Recovery Operating Reserve
AFSA proposes to utilise a CROR to manage the under/ over recovery of fees. The CROR balance
would be maintained at no more than ten percent of annual program expenditure.
AFSA will transfer any accumulated reserve surplus funds to government as part of the management
strategy for CROR. This strategy has been developed as:
1. It would be impracticable to return surplus funds to past customers for two main reasons:
a) it would require tracing actual customers through third party service providers; and
b) the administrative effort involved would be significant and likely result in small returns
to past customers;
2. An insufficient nexus exists between past end users of the register and future end users to
enable returning the funds through reduced future fees; and
3. AFSA is also unable to retain these funds under the government funding framework.
Table 3 outlines the forward projections of the balance of the Cost Recovery Operating Reserve.
Table 3
Cost Recovery Operating 2017-18 2018-19 2019-20 2020-21 2021-22
Reserve ’000 ’000 ’000 ’000 ’000
Opening Reserve $40,870 $12,081 $4,082 $4,082 $4,082
Operating Results $6,594 $0 $0 $0 $0
Transfer to Government* -$35,383 -$7,999 $0 $0 $0
Closing Reserve $12,081 $4,082 $4,082 $4,082 $4,082
*Refer to page 9 detailing management of ‘Cost Recovery Operating Reserve’
5/4/2018 www.afsa.gov.au Page 9 of 19PPSR COST RECOVERY IMPLEMENTATION STATEMENT - AFSA
Total Financial Reserve Funds
Table 4 provides a summary of total funds held by AFSA relating to CIR and CROR.
Table 4
Combined Reserves 2017-18 2018-19 2019-20 2020-21 2021-22
’000 ’000 ’000 ’000 ’000
$30,301 $29,817 $27,065 $19,313 $8,521
Capital Investment Reserve
Cost Recovery Operating $12,081 $4,082 $4,082 $4,082 $4,082
Reserve
$42,382 $33,899 $31,147 $23,395 $12,603
Balance
STAKEHOLDER ENGAGEMENT
Stakeholder Consultation
This version of the CRIS has been prepared for stakeholder consultation. Feedback from
stakeholders will be incorporated in the final version of the CRIS and will be summarised in this
section.
FINANCIAL ESTIMATES
Projections
Table 5 outlines the financial results, which AFSA is currently expecting to achieve against the PPSR
program. Forward projections cover the period for which published Portfolio Budget Statements are
available.
Table 5
Expenses and 2017-18 2018-19 2019-20 2020-21 2021-22
Revenues (Budget) ‘000 ‘000 ‘000 ‘000
‘000
Operating $38,424 $35,168 $35,168 $35,168 $35,168
Expenses[1] = X
Depreciation $3,000 $5,378 $5,378 $5,378 $5,378
Expense
Total Expenses = $41,424 $40,546 $40,546 $40,546 $40,546
X
Revenue = Y $48,018 $40,546 $40,546 $40,546 $40,546
Operating $6,594 $0 $0 $0 $0
Results
(Balance[1] = Y –
X)
Materiality defined by AASB1031 and PGPA (Financial Reporting) Rule 2015, AASB 108 Accounting Policies, Changes in Accounting
Estimates and Errors and AASB 101 Presentation of Financial Statements as defined by AASB108.
5/4/2018 www.afsa.gov.au Page 10 of 19PPSR COST RECOVERY IMPLEMENTATION STATEMENT - AFSA
FINANCIAL PERFORMANCE
Historical Performance
Table 6 outlines the historical financial performance of the PPSR program.
Table 6
2013-14 2014-15 2015-16 2016-2017
‘000 ‘000 ‘000 ‘000
$31,905 $36,029 $37,135 $37,556
Operating Expenses*
$10,965 $8,018 $0 $0
Repayment to Government*^
$42,870 $44,047 $37,135 $37,556
Total Expenses = X
$49,742 $51,789 $46,423 $48,721
Revenue = Y
$6,872 $7,742 $9,288 $11,165
Balance = Y – X
Opening Cost Recovery $11,223 $18,096 $25,838 $32,126
Operating Reserve
$6,872 $7,742 $6,288 $8,744
Transfer in/ (Out)+
Closing Cost Recovery $18,096 $25,838 $32,126 $40,870
Operating Reserve
* Excludes recoveries for enhancements of PPSR and associated expenditure – refer to CIR table. ^ Repayment to Government represents funding to
establish PPSR. + AFSA returned $3.0m to government in 2015-16 and $2.43m in 2016-17 due to efficiency arrangements
The Cost Recovery Operating Reserve has accumulated funds over the years due to various reasons.
Several factors are outlined on page 5 ‘Proposed Changes to Fees”. Other factors include delays to
update fees due to anticipated changes arising from the statutory review of the PPS Act. The review
is yet to be finalised with an exact date unknown at this stage. The strategy to manage Cost Recovery
Operating Reserve is outlined on page 9.
NON-FINANCIAL PERFORMANCE
Estimates of activity for future years are shown at Annex C. Annex D shows the alignment/difference
of actual activity with estimates. Variations of actual activity from estimates will also be the basis of
the review of cost attribution and prices annually.
The table below describes the goals and performance measures for the activity covered in this CRIS.
At the end of the financial year, the results against each performance measure will be published.
These performance measures are reflected in AFSA’s corporate plan 2017-18 with a focus on aligning
AFSA’s operations to best achieve AFSA’s targets as outlined within the Attorney-General’s Portfolio
Budget Statements.
5/4/2018 www.afsa.gov.au Page 11 of 19PPSR COST RECOVERY IMPLEMENTATION STATEMENT - AFSA
Key Performance Indicators
Our Goals Performance Measures
Stakeholder feedback demonstrates outcomes achieved have assisted in creating an
environment that minimises harm caused by significant non-compliance with the law or a
failure by the regulated community to adhere to an expected standard of behaviour.
Foster 95% of referrers notified of assessment decision within 15 working days of receipt of
Confidence allegation and all relevant information.
More than 90% of investigations completed within 12 months of acceptance for investigation.
Proportion of online registry services availability is greater than or equal to 99%.
Deliver Value Positive financial result for personal property securities program.
Effective
Improved customer satisfaction.
Services
Quality
Improved customer satisfaction.
Information
RISK ASSESSMENT
Risks
This section provides analysis of the risks relevant to AFSA’s cost recovery on the PPSR, in terms of
materiality, complexity and sensitivity.
Materiality
AFSA is funded so that cost recovered revenue covers all of its operating expenses. AFSA manages
its expenses for the PPSR from revenue raised as it does not receive appropriations from Government
for this activity. This scenario makes it crucial for AFSA to reliably forecast its expected volumes and
revenue. Significant time and effort is undertaken to ensure the volumetric forecasts are accurate
and reliable to ensure AFSA’s cost structures remain largely aligned to any revenue fluctuations.
AFSA may over or under recover revenue due to inaccurate costs and/or volumes. AFSA continually
monitors its revenue in comparison to its operating costs on a program basis. Material variances are
monitored and managed in accordance with the Commonwealth Charging Framework and may result
in the development of a new CRIS.
Complexity
PPSR fees and services by their nature are simple, as the product which one obtains for a given fee
is clearly defined.
While the output of the PPSR as a system is clearly defined, and while AFSA operates under a policy
of the Register being readily available, the Register does possess the inherent complexities
associated with maintaining a system so that it is continually operational (i.e. 24/7). System outages
5/4/2018 www.afsa.gov.au Page 12 of 19PPSR COST RECOVERY IMPLEMENTATION STATEMENT - AFSA and planned maintenance can compromise AFSA’s service delivery of the PPSR. From a policy perspective however, the PPS Act (s147) affords some flexibility, allowing the Registrar to not operate the PPSR when it is not practical to do so. This power is generally only exercised marginally, and when possible, it is exercised at times which have minimal impact on end users. For example, the PPSR is scheduled to be maintained between 9pm and midnight every Wednesday, Canberra time. AFSA endeavors to provide ample communications to stakeholders before any scheduled maintenance which makes the PPSR unavailable to users. AFSA does not expect these inherent complexities to substantially impact the revenue derived by the PPSR. Sensitivity Historically, revenue derived from PPSR fees has been above forecasts each year of operation, noting that the system only commenced in 2012. PPSR revenue could be adversely affected by a downturn in areas of the market where goods are frequently purchased through secured financing arrangements. AFSA continually monitors its revenue in comparison to its operating costs. AFSA seeks to ensure forecasted volumes are as robust as possible, understanding the inherent limitations that exist with all forecasting work. The CROR will assist to manage fluctuations in volumes and their impacts on revenue until AFSA can implement updated charges. KEY FORWARD DATES AND EVENTS The following key dates are guides to expected activity within the PPSR program: April 2018: Public consultation to be confirmed. May 2018: Accountable Authority certification and Ministerial approval of the CRIS. June 2018: Publication of the final version of the CRIS. July 2018: Implementation of revised fees. October 2018: Update of key performance indicators, financial forecasts and results. October 2019: Review and update key performance indicators, financial forecasts and results. November 2019: Update volume forecasts October 2020: Review and update key performance indicators, financial forecasts and results. November 2020: Update volume forecasts 5/4/2018 www.afsa.gov.au Page 13 of 19
PPSR COST RECOVERY IMPLEMENTATION STATEMENT - AFSA
CRIS APPROVAL AND CHANGE REGISTER
Date of CRIS change CRIS change Approver Basis for change
Title of Updated schedule of
XX/02/2018 Certification of the CRIS accountable charges
authority
Title of Updated schedule of
XX/02/2018 Agreement to the CRIS responsible charges
minister
5/4/2018 www.afsa.gov.au Page 14 of 19PPSR COST RECOVERY IMPLEMENTATION STATEMENT - AFSA
ANNEX A: PROPOSED ACTIVITIES AND SCHEDULED CHARGES
REF. NO. ACTIVITY GROUPS Online Online Contact Centre 2018-19 2019-20 2020-21 2021-22
Register or amend a Financing Statement and related Previous Charge Charge Charge Revenue Revenue Revenue Revenue
1 charges $ (GST Exclusive) $ (GST Exclusive) $ (GST Exclusive) $ $ $ $
Register a Financing Statement where the duration is 7
1.01 years or less $ 6.80 $ 6.00 $ - $ 12,652,992 $ 12,652,992 $ 12,652,992 $ 12,652,992
Register a Financing Statement where the duration is
1.02 more than 7 years but less than or equal to 25 years $ 34.00 $ 25.00 $ - $ 2,347,200 $ 2,347,200 $ 2,347,200 $ 2,347,200
1.03 Register a Financing Statement for a not stated end time $ 119.00 $ 115.00 $ - $ 6,105,810 $ 6,105,810 $ 6,105,810 $ 6,105,810
TOTAL REGISTRATIONS $ 21,106,002 $ 21,106,002 $ 21,106,002 $ 21,106,002
Register or amend a Financing Statement and related
2 charges
Amend a Financing Statement where the duration is 7
years or less (e.g. extension of end date, addition of a
2.01 grantor) $ 6.80 $ 6.00 $ - $ 1,012,380 $ 1,012,380 $ 1,012,380 $ 1,012,380
Amend Financing Statement where the duration is more
than 7 years but less than or equal to 25 years (e.g.
2.02 extension of end date, addition of a grantor) $ 34.00 $ 25.00 $ - $ 73,725 $ 73,725 $ 73,725 $ 73,725
Amend a Financing Statement for a not stated end time
2.03 (e.g. additional grantor) $ 119.00 $ 115.00 $ - $ 86,135 $ 86,135 $ 86,135 $ 86,135
Amend registration (end time to an earlier time, or remove
2.04 grantor where multiple grantors exist) $ - $ - $ - $ - $ - $ - $ -
TOTAL AMENDMENTS $ 1,172,240 $ 1,172,240 $ 1,172,240 $ 1,172,240
5/04/2018 www.afsa.gov.au Page 15 of 19PPSR COST RECOVERY IMPLEMENTATION STATEMENT - AFSA
REF. NO. ACTIVITY GROUPS Online Online Contact Centre 2018-19 2019-20 2020-21 2021-22
Previous Charge Charge Charge Revenue Revenue Revenue Revenue
3 Discharge Financing Statement $ (GST Exclusive) $ (GST Exclusive) $ (GST Exclusive) $ $ $ $
3.01 Discharge Financing Statement $ - $ - $ - $ - $ - $ - $ -
TOTAL DISCHARGES $ - $ - $ - $ -
4 Searches (note 1)
4.01 Search - via all available avenues $ 3.40 $ 2.00 $ 7.00 $ 18,268,248 $ 18,268,248 $ 18,268,248 $ 18,268,248
TOTAL SEARCHES $ 18,268,248 $ 18,268,248 $ 18,268,248 $ 18,268,248
5 Other
Develop a special purpose report for Account Holders ($
5.01 per hour) $ - $ - $ 300.00 $ - $ - $ - $ -
5.02 Maintenance of Registrations (note 2) $ 4.00 $ 4.00 $ - $ - $ - $ - $ -
TOTAL OTHER $ - $ - $ - $ -
TOTAL PPSR $ 40,546,490 $ 40,546,490 $ 40,546,490 $ 40,546,490
Note 1. Search fee allows drill down on each returned registration and includes search certificate. A search may be re-accessed following the provision of the initial search results.
Note 2. Revenue has been estimated at nil on the basis that an unpaid maintenance fee is not enforceable as debt owed to the Commonwealth (refer to section 2.1 of this CRIS).
Note 3. The above fees are not subject to GST.
22/2/2018 www.afsa.gov.au Page 16 of 19PPSR COST RECOVERY IMPLEMENTATION STATEMENT - AFSA
ANNEX B: LEGISLATIVE AUTHORITY TO CHARGE
REF. NO. ACTIVITY GROUPS AUTHORITY TO RECOVER
1 Register or amend a Financing Statement and related charges
1.01 Register a Financing Statement where the duration is 7 years or less PPS Act s150, s190
1.02 Register a Financing Statement where the duration is more than 7 years but less than or equal to 25 years PPS Act s150, s190
1.03 Register a Financing Statement for a not stated end time PPS Act s150, s190
2 Register or amend a Financing Statement and related charges
2.01 Amend a Financing Statement where the duration is 7 years or less (e.g. extension of end date, addition of a grantor) PPS Act s150, s190
2.02 Amend Financing Statement where the duration is more than 7 years but less than or equal to 25 years (e.g. extension of end date, PPS Act s150, s190
addition of a grantor)
2.03 Amend a Financing Statement for a not stated end time (e.g. additional grantor) PPS Act s150, s190
2.04 Amend registration (end time to an earlier time, or remove grantor where multiple grantors exist) PPS Act s150, s190
3 Discharge Financing Statement
3.01 Discharge Financing Statement PPS Act s150, s190
4 Searches
4.01 Search - via all available avenues PPS Act s170, s190
5 Other
5.01 Develop a special purpose report for Account Holders ($ per hour) PPS Act s176, s190
5.02 Maintenance of Registrations (note 2) PPS Act s168, s190
5/04/2018 www.afsa.gov.au Page 17 of 19PPSR COST RECOVERY IMPLEMENTATION STATEMENT - AFSA
ANNEX C: VOLUMES RELATING TO EACH CHARGE
REF. ACTIVITY GROUPS 2018-19 2019-20 2020-21 2021-22
NO.
1 Register or amend a Financing Statement and related charges Volumes Volumes Volumes Volumes
1.01 Register a Financing Statement where the duration is 7 years or less 2,108,832 2,108,832 2,108,832 2,108,832
1.02 Register a Financing Statement where the duration is more than 7 years but less than or equal to 93,888 93,888 93,888 93,888
25 years
1.03 Register a Financing Statement for a not stated end time 53,094 53,094 53,094 53,094
TOTAL REGISTRATIONS 2,255,813 2,255,813 2,255,813 2,255,813
2 Register or amend a Financing Statement and related charges
2.01 Amend a Financing Statement where the duration is 7 years or less (e.g. extension of end date, 168,730 168,730 168,730 168,730
addition of a grantor)
2.02 Amend Financing Statement where the duration is more than 7 years but less than or equal to 25 2,949 2,949 2,949 2,949
years (e.g. extension of end date, addition of a grantor)
2.03 Amend a Financing Statement for a not stated end time (e.g. additional grantor) 749 749 749 749
2.04 Amend registration (end time to an earlier time, or remove grantor where multiple grantors exist) 38,545 38,545 38,545 38,545
TOTAL AMENDMENTS 210,973 210,973 210,973 210,973
3 Discharge Financing Statement
3.01 Discharge Financing Statement 1,538,121 1,538,121 1,538,121 1,538,121
TOTAL DISCHARGES 1,538,121 1,538,121 1,538,121 1,538,121
4 Searches
4.01 Search - via all available avenues 9,134,124 9,134,124 9,134,124 9,134,124
TOTAL SEARCHES 9,134,124 9,134,124 9,134,124 9,134,124
5 Other
5.01 Develop a special purpose report for Account Holders ($ per hour) - - - -
5.02 Maintenance of Registrations (note 2) - - - -
TOTAL OTHER - - - -
TOTAL PPSR 13,139,031 13,139,031 13,139,031 13,139,031
5/04/2018 www.afsa.gov.au Page 18 of 19PPSR COST RECOVERY IMPLEMENTATION STATEMENT - AFSA
ANNEX D: ACTUAL VS FORECAST VOLUMES VARIANCE FOR PAST YEARS
2013-14 2013-14 2013-14 2014-15 2014-15 2014-15 2015-16 2015-16 2015-16 2016-17 2016-17 2016-17
Year
Actuals Forecast Variance Actuals Forecast Variance Actuals Forecast Variance Actuals Forecast Variance
Ref.No Activity *
1.01 Register a Financing Statement where the duration is 7 years or less 2,087,317 1,879,010 208,307 1,912,262 1,935,381 -23,119 2,037,034 1,750,000 287,034 1,987,776 1,750,000 237,776
1.02 Register a Financing Statement where the duration is > 7 years but < or = to 25 years 136,704 84,524 52,180 72,930 87,060 -14,130 73,928 70,000 3,928 88,498 70,000 18,498
1.03 Register a Financing Statement for a not stated end time 249,439 47,770 201,669 58,574 40,555 18,019 48,253 55,000 -6,747 50,046 55,000 -4,954
Total 2,473,460 2,011,304 462,156 2,043,766 2,062,996 -19,230 2,159,215 1,875,000 284,215 2,126,320 1,875,000 251,320
Old 2.1 Attach a document to a Financing Statement 10,617 14,079 -3,462 7,725 14,502 -6,777 0 10,000 -10,000 0 10,000 -10,000
Total 10,617 14,079 -3,462 7,725 14,502 -6,777 0 10,000 -10,000 0 10,000 -10,000
2.01 Amend a Financing Statement where the duration is 7 years or less 84,668 44,349 40,319 123,767 45,679 78,088 105,581 40,000 65,581 159,044 40,000 119,044
2.02 Amend Financing Statement where the duration is > 7 years but < or = to 25 years 2,228 6,898 -4,670 2,301 7,105 -4,804 2,782 18,000 -15,218 2,780 18,000 -15,220
2.03 Amend a Financing Statement for a not stated end time 766 1,971 -1,205 1,338 2,030 -692 532 4,000 -3,468 706 4,000 -3,294
2.04 Minor amendment to Financing Statement or a change of free text description of collateral 30,282 19,710 10,572 19,673 20,302 -629 32,856 40,000 -7,144 29,179 40,000 -10,821
Total 117,944 72,928 45,016 147,079 75,116 71,963 141,751 102,000 39,751 191,709 102,000 89,709
4.01 Search of the register by grantor 2,891,625 2,102,268 789,357 3,304,646 2,165,336 1,139,310 3,534,618 3,000,000 534,618 3,856,380 3,000,000 856,380
4.02 Search of the register by serial number 3,894,992 3,974,047 -79,055 4,140,593 4,093,269 47,324 4,612,289 3,800,000 812,289 4,624,007 3,800,000 824,007
4.03 Search of the register by registration number 227,948 356,046 -128,098 132,855 366,727 -233,872 127,695 125,000 2,695 129,401 125,000 4,401
4.04 Undertake an ordinal search of the register 83 865 -782 56 891 -835 50 73 -23 60 73 -13
Total 7,014,648 6,433,226 581,422 7,578,150 6,626,223 951,927 8,274,652 6,925,073 1,349,579 8,609,848 6,925,073 1,684,775
Old 7.1 Reissue search certificate 504 225 279 928 232 696 839 90 749 276 90 186
Old 7.2 Issue a copy of a verification statement 2,000 0 2,000 2,085 0 2,085 1,082 2,500 -1,418 1,325 2,500 -1,175
Total 2,504 225 2,279 3,013 232 2,781 1,921 2,590 -669 1,601 2,590 -989
* Excludes non-fee and non-revenue generating activity
5/04/2018 www.afsa.gov.au Page 19 of 19You can also read
