The commercial fishing industry in South Australia is required to meet the costs of all services to support the sector.
- assessment and research
- fisheries policy and management
- support services
- business services.
Cost recovery documents
Cost recovery documents are listed by financial year:
Cost recovery process
PIRSA’s cost recovery charges are calculated using Activity Based Costing, consistent with best practice as discussed in the Australian Cost Recovery Guidelines. This involves the apportionment of direct, indirect, corporate and capital costs to activities, which are then apportioned to cost recovered outputs. Capital costs comprise depreciation, which spreads the cost of assets over their useful lives, and cost of capital which recognises that funds could have been invested elsewhere in government and earned a return commensurate with the risk profile of the asset.
A range of carefully selected cost drivers, which approximate the resources used by activities, are used to apportion costs over the medium to long term using Microsoft Excel models. For example, some human resource services are apportioned based on headcount and some information technology costs are apportioned based on the number of logons. The models are reviewed annually and use forward looking expense estimates based on the latest available budgets and forward estimates.
The Fisheries cost recovery model includes direct employee expenses, supplies and services, capital costs and a share of corporate costs. Employee costs are apportioned to activities and industries based on hours spent as recorded. The model calculates daily charge out rates for activities based on 200 chargeable days per Full Time Equivalent (FTE) employee. Industry charges are based on the daily rates and the number of days necessary for the agreed service delivery program.
Cost recovery review
The State Government made a pre-election commitment, in 2017, to conduct an independent review of PIRSA’s Cost Recovery Policy as it applies to fisheries and aquaculture. This review of the current policy was undertaken against best practice arrangements including the recommendations contained in the recent Commonwealth Productivity Commission inquiry into the fisheries and aquaculture sector.
KPMG, as an independent consultant, was appointed to conduct this review of PIRSA’s Cost Recovery Policy for fisheries and aquaculture. KPMG consulted with the fishing and aquaculture sectors and PIRSA during the review.
There were 11 recommendations in the final report from KPMG. All recommendations have been accepted by the State Government and will be implemented by PIRSA in a step wise manner.
- State Government delivers transparency to seafood sector - media release 6 February 2019
- Independent report ()
- State Government response ()
- PIRSA Cost Recovery Policy 2015 ()
- Review of Cost Recovery Policy (Deloittes) - July 2015 ()
Note: The 2015 Deloitte report is a review of fisheries and aquaculture’s internal policy only.
- Australian Government Cost Recovery Guidelines 2014
- Review of Fisheries Cost Recovery Policy (Deloitte) - July 2009 ()