The Civil Aviation Authority has released a proposal to increase aviation safety and security levies, fees, and charges, to re-establish a sustainable funding model, and is seeking submissions on the proposal from today until Tuesday 8 October 2024.
The levies, fees and charges support regulatory activity that ensures the aviation system is safe and secure.
The last review of the Authority’s funding model was in 2017, with some passenger levies revised in 2019. A review of levies, fees and charges in 2020 was suspended due to the impacts of the Covid-19 pandemic. The pandemic had a detrimental impact on the Authority’s income and the organisation has since received extra Crown funding to meet shortfalls.
The Government has confirmed that it will no longer provide financial support to the Authority beyond 30 June 2025. The proposed changes will ensure the Authority has sufficient revenue to carry out its regulatory functions and statutory obligations over the two financial years from 1 July 2025 to 30 June 2027.
Director of Civil Aviation and Chief Executive Keith Manch says an increase in funding is needed to undertake regulatory activities at the present level, and to avoid negative impacts on the aviation sector.
“Like many sectors, aviation continues to feel the impacts of the global pandemic, and while the sector recovers to pre-pandemic levels, the need for effective regulation is critical for keeping aviation in New Zealand safe and secure,” he said.
“Not increasing the levies, fees and charges will severely impact our ability to our job which will not only compromise the safety and security of New Zealand’s aviation system, but will have wider economic and sector impacts.”
The proposal presents three options which all recover the same level of revenue, but with differences in the allocation of costs across funding types and different aviation industry activities; incorporate the rebuilding of the Authority’s reserves to ensure that it can remain a going concern; and assuming that baseline Crown funding remains unchanged.
The preferred option spreads increased costs across the system more fairly and reduces negative economic, financial and system performance impacts compared to other options. Those that receive the highest benefits from system safety and generate the most risk (in terms of the potential for harm to the greatest number of people) pay a higher proportion.
Following the consultation period, all submissions will be analysed and proposals may be adapted. The Authority and the Ministry of Transport will engage with the Minister of Transport to consider the results of the consultation, with revised or confirmed proposals taken to Cabinet for approval and implementation.
The Authority and Ministry of Transport plan to seek final decisions from the Government by 20 December 2024, with required regulatory amendments in place by 31 May 2025 and taking effect on 1 July 2025.
Read the consultation document [PDF 897 KB]
027 763 0000 | media@caa.govt.nz
