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5.5  Identifying the rate for levies

An appropriate way to distribute levy payments among levy payers needs to be identified, based on the relevant cost drivers. A flat rate would split the levy evenly between all users. Alternatively a differentiated rate would split the levy payments based on the resources used or level of activity generated by groups of levy payers. This could be based on payer size, level of activity, level of risk or other criteria. A differentiated rate might result in a more complex cost structure, but reduce the potential for cross subsidisation and improve fairness between levy payers to the extent that the payers who drive the costs bear the costs also.

See also section 5.4 for discussion on variable charges and variable levy structures.

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