How does AWTA Ltd set fees?

The AWTA Ltd board reviews fees annually, based on recommendations made by the Management.

AWTA Ltd's structure as a Company Ltd by Guarantee exempts it from paying company tax and from any requirement to distribute profits to any shareholders.

The Company's charter requires it to deliver services at minimum cost. However, the Company is required to generate capital for future investment, simply to replace existing buildings and equipment, as well as developing or manufacturing new equipment for new services.

Fees are determined by first calculating the actual cost of each test or service in its own right, and then estimating the demand for each test or service over the next financial year. The effect of any anticipated improvements in productivity arising from improvements in labour utilisation or from technological innovation are factored into these costs. Income from other sources, such as interest on capital, sale of excess sample material, and sale of equipment is estimated. A required level of profit is determined and projections of income versus expenses are then made. The fees to achieve the required operating income are then determined.

Every effort is made to ensure that there is no cross- subsidisation of services. Depending upon the level of unappropriated profits from previous years the Company sometimes sets fees, which are targeted at achieving manageable losses.