Thoroughbred R&D Levy Proposal
A Discussion Paper
9.Indicative Thoroughbred RD&E Program Budget:
The following indicative budget projections are derived from the Horse R,D&E Plan 2011-2016 - adjusted to reflect Thoroughbred Industry priorities for expenditure. Based on ASB data, the proposed statutory Thoroughbred R&D Levy is expected to raise around $400,000 per annum.
Whilst voluntary contributions from industry have historically been around $300,000 per annum, there is no forward commitment by contributors to continue voluntary payment at this level.
To achieve the target $1 million per annum Thoroughbred R,D&E investment fund, would require levy funds plus ongoing voluntary contributions from the Thoroughbred Industry of around $150,000 per annum, together with matching Australian Government financial contributions on eligible project expenditure as summarised in Table 1:
Click on image table to enlarge
Note 1: TBA will be seeking Australian Government matching funding to apply to eligible R,D&E program expenditure, using Thoroughbred R&D Levy funds and voluntary contributions (subject to required legislative changes being approved), from the operative date of the levy (proposed for 1 August 2014).
Note 2: DAFF is yet to provide an estimate of levy administration costs, which will be recovered from levy funds held by RIRDC.
Note 3: Levy funds collected during the 2014/15 breeding season will not be available for expenditure until the 2015/16 year.
Note 4: In line with a projected decline of 12% in broodmare returns and coverings over the 5 year period, projected levy income is estimated to decline by 3% per annum during this period.
Note 5: It is suggested that 12.5% of industry funds be set aside in each year for up to 5 years to generate a contingency reserve fund.
Note 6: The split of expenditure between the suggested 6 program Objectives in Table 1 is flexible and able to be changed annually in accordance with industry circumstances at that time.
Note 7: RIRDC is implementing full program cost recovery which is around 10% of total program funds, in line with other Research & Development Corporations.
Q6: Do you have any comments on the indicative Thoroughbred RD&E plan budget?
Please refer to Attachment 2: Thoroughbred Levy Feedback Form, where you are able to record your responses to the questions raised in this discussion paper.
Included with this discussion paper are: