View Single Post
Old 25th Apr 2014, 02:34
  #621 (permalink)  
Join Date: Apr 2007
Location: Go west young man
Posts: 1,732
TICK TOCK miniscule Budget estimates fast approaching?

Top stuff UITA good catch & research!

The fuel excise question was not missed by the RAAA either..

From the RAAA aviation policy (2013):

The FY11 federal budget introduced a significant rise in funding for CASA by way of an increase in the fuel levy. In the forward estimates the amount of the fuel levy allocated to CASA increased from $80M in FY10 to $124M in FY14. Proportionally this raised the amount of CASA funding out of the fuel levy from 61% to 74% over the period with the balance
coming out of ordinary appropriations.

This had the effect of exacerbating an already inequitable situation as international flights (including those operated by Australian carriers such as Qantas, Jetstar and Virgin Australia) do not pay the fuel levy. Similarly, the major airports and Airservices Australia do not pay the fuel levy yet they come under CASA’s jurisdiction. Clearly, a very large proportion of CASA’s resources are expended on services which do not contribute to CASA funding.

Effectively this has put the main burden of CASA funding on the regional operators and the mainline domestic operators. However as the main domestic airlines all belong to company groups that have international operations they are receiving some benefit from this arrangement. It is the regional operators that are paying far more than their fair share under
this funding arrangement.

This was the subject of a Senate Inquiry in 2010 with some concern expressed by Coalition Senators in the final report as to the process employed to enact this increase.


Funding of CASA should be provided totally out of consolidated revenue rather than the current inequitable method used with the fuel levy. However if it is deemed that industry needs to contribute to CASA funding then such funding should be based on more equitable parameters that measure activity such as passenger numbers and/or ASKs (Available Seat Kilometers). These parameters could be adapted to suit both airlines and airports.
Basically put the regional aviation & GA sectors are footing the bill for FF, for what would appear to be no tangible benefit, this was noted by the Coalition in minuscule...TICK bloody TOCK!
Sarcs is offline