5 Captial Charge

The Department pays a capital charge to the Crown based on our taxpayers’ funds as at 30 June of the previous financial year and 31 December of the current financial year. The capital charge rate for the year ended 30 June 2008 is 7.5% (2007: 7.5%). Changes to taxpayers’ funds are mainly affected by capital contribution required for specific outputs. Where the capital charge can be directly attributed to an output, that amount is charged to that output. The remainder is allocated based on the percentage of net plant, property and equipment attributed to outputs, as a proxy for allocating capital charge.