pay a fee of 0.45 per cent of their fee reference margin, multiplied by the 70 per cent coverage level. This works out to be $315 per $100,000 of reference margin. You also pay $55 to help cover administrative costs.
Calculating your fee
The fee reference margin is an Olympic average of your five recent production margins, starting two years ago (the most recent data). For example, the 2016 fee reference margin uses the production margins from 2010 to 2014, dropping the highest and lowest margins.
The example below assumes a fee reference margin of $100,000. The fee would be $315 + $55.
Fee = (Fee reference margin x 0.45% x 70%) + $55
= $315 + $55
The minimum fee is $45.
If you miss the payment deadline, your coverage will be automatically renewed and a 20 per cent increase will be added to your fee.
Once your coverage is renewed, you will owe your total amount due, even if you fail to meet other eligibility requirements (such as submitting your application and tax forms, or paying your fee).