2016-71 - Business Systems Program – Cessation of Horticulture Account Client status
12 December 2016
To advise clients that the Horticulture Account Client arrangement will cease from 1 January 2017. December 2016 will be the final month for which monthly accounts will be issued for horticulture export clients.
Horticulture clients are currently the only departmental clients with access to monthly account status. One of the reasons for implementing monthly account client status for horticulture was the administrative burden on industry of managing invoices for multiple inspection and audit events.
However, the transition to the Authorised Officer (AO) model reform has resulted in the department undertaking fewer inspections and this has significantly reduced the administrative burden on industry resulting from invoicing at time of service.
This approach is inequitable to other export clients and not in line with the Australian Government Cost Recovery Guidelines. The cessation of monthly account client billing will align the horticulture export arrangement with the billing practices in other cost recovery arrangements in the department.
This decision was communicated to the Horticulture Export Industry Consultative Committee (HEICC) in an Out of Session paper in August 2016.
Summary of changes and key points
- The Horticulture Account Client arrangement will cease from 1 January 2017.
- From 1 January 2017, inspection and audit services will be invoiced at time of service with standard payment terms.
- December 2016 will be the final month for which monthly accounts will be issued for horticulture export clients.
- The change impacts invoicing for inspection and audit services only
- Charging for establishment registration, documentation and tonnage will not change.
- No action is required by clients, the department will make all necessary account changes.
If you have any questions regarding this IAN please email David Monck or phone (02) 6272 3245.
Dr Chris Parker
Plant Export Operations Branch