Mitigating the financial impacts of COVID-19

In a crisis such as the COVID-19 pandemic, demand for some services may drop. Public sector organisations which charge fees or levies for those services can find themselves short of funds. We were asked by a Crown Entity which relies on levies for nearly all of its funding to estimate the impact of COVID-19 and to develop mitigation options.

Due to high levels of uncertainty, we modelled the impact on levy revenue under Best, Mid and Worst-case scenarios. We identified and assessed mitigation options for each scenario and developed a mitigation plan in consultation with the agency. The plan is being rolled out as the situation evolves and the financial impacts on the agency become clear.