36FESL revenue target

36 FESL revenue target

36 FESL revenue target

(1) The Treasurer is to determine the FESL revenue target for a financial year using the following formula:

where:

ERt is the FESL revenue target for the financial year (represented by “t”).

FTt is the funding target for the financial year.

CCt is the collection cost for the levy in the financial year.

ERt-2 is the FESL revenue target for the financial year that commenced 2 years before the period “t” (represented as “t-2”).

ARt-2 is the actual FESL revenue for the financial year that commenced 2 years before the period “t” (represented as “t-2”), as certified by the Treasurer.

OCt is the recovered over-collection amount for the financial year.

(2) To avoid doubt, if ERt-2−ARt-2 is a negative amount, that amount is subtracted from the total.

(3) When calculating the FESL revenue target for the 2017/2018 financial year and the 2018/2019 financial year, ERt-2− ARt-2 is taken to be zero.

(4) The FESL revenue target is to include any additions made under Part 2 of Schedule 3.

Note—

Under Schedule 3, the Monitor budget and start-up costs for the levy can be added to the FESL revenue target during the initial period of the scheme.

(5) Expressions used in the FESL revenue target formula have the meanings given by this Division.