Infrastructure costs relate to the general infrastructure associated with the functioning of the University, rather than costs that can be clearly identified and assigned to the specific project or activity. Even in cases where use of University infrastructure may seem minimal, the University will still incur some infrastructure costs associated with, for example, invoicing the client or funding agency, use of the University systems, insurance and professional indemnity cover for staff.
Inclusion of the University’s minimum standard infrastructure charge of 25% of the sum of the direct costs of the activity may generally only represent a partial contribution to infrastructure costs.
Most research income, other than income awarded from nationally competitive grants, will incur a 25% infrastructure levy. This is levied from GST exclusive research income unless the application meets certain exemption criteria as outlined in the Cost Recovery and Pricing Guidelines.
Projects funded by schemes considered as Category 1 are exempt from the 25% infrastructure levy. The Department of Education provides a self-assessment system for universities to determine which of their R&D income can be classified as Category 1. This can be found on the Australian Government Department of Education website.