Indirect cost recovery (overheads) rates

The University’s Policy on the Recovery of Infrastructure and Services Costs in Research Budgets (HUPP4.50.4) indicates that the indirect cost recovery component on all research projects will be 60% of total employment costs; plus 10% of all other costs.

The total of all direct and indirect costs, calculated as per University policy, is the minimum amount of funding that should usually be requested from the granting body/sponsor.

Once funding for a research project has been received by the University, the direct cost component will be distributed to the Chief Investigator to be used to carry out the project. The indirect cost component will be recovered by the University to cover the costs it incurs in support of the research, and will be distributed to various operational areas including the Research Group/Workgroup; School/Centre; Faculty/Institute; and Central University services.

Variations and waivers to indirect cost recovery rates

Under some circumstances, the University recognises that full recovery of indirect costs may not be possible due to limitations applied by the granting body/sponsor. For this reason, there are some routine exceptions to the standard indirect cost recovery rates, as outlined in the table below. In addition, where a routine exception does not apply, but the research team feels that a waiver/reduction in indirect cost recovery would be appropriate, a waiver may be sought from the Deputy Vice-Chancellor (Research), via your Faculty/Institute Manager, Innovation and Commercial Development (MICD).
 

	Budget Preparation Notes	Approval Required?
Charitable Trust/Foundation where the Scheme Guidelines prohibit/limit indirect cost recovery	Indirect costs should not be included in the budget; or should be included only to the maximum level (or %) allowed by the granting agency/sponsor.	No, however confirmation of waiver must be sought from R&ID RAO.
Schemes on the Australian Competitive Grants Register	Indirect costs/overheads should not be included in the budget; or should be included to the maximum level (or %) allowed by the granting agency/sponsor.	No
Specific costs in support of postgraduate student thesis projects; where there are no obligations on the student or UQ other than to provide progress reports and a copy of the thesis. These costs can incl. scholarships, stipends, costs of salaried academic staff for student supervision, costs directly related to the thesis project.	Indirect costs/overheads should not be included for these specific budget items. Indirect costs/overheads should be applied to all other budget items unless another exception applies.	No
Specific costs associated with the use of facilities neither owned nor financially supported by UQ	Indirect costs/overheads should not be included for these specific budget items. Indirect costs/overheads should be applied to all other budget items unless another exception applies.	No
Clinical trials	Indirect costs/overheads should be included in the budget at a rate of 15%, unless another exemption applies.	No
All other cases	Full indirect cost recovery should be included in the budget, unless a waiver or reduction has been approved by the Deputy Vice-Chancellor (Research).	Yes

 

Requesting a waiver/reduction of indirect cost recovery from the DVC(R) – waivers should be requested in special circumstances only

Waivers or reductions of the standard indirect cost recovery rate may be requested from the DVC(R) in some special circumstances, in consultation with your Faculty/Institute MICD, and where a sound business case can be made.

NB. Requests submitted following the award of funding, where appropriate indirect cost recovery was not included in the research project budget are not usually looked upon favourably.

 

If you wish to request a waiver or reduction of the indirect cost recovery rate from the Deputy Vice-Chancellor (Research):

1. Complete the Request for Variation of Indirect Cost Recovery Form (available as a template email).
2. Email the completed Form to your MICD (https://www.uniquest.com.au/micd-contacts). Your MICD will review the request, add any further information they feel will support the case, and seek email approval from the Head of School/Centre/Institute.
3. The MICD will forward the request (and the approval from the Head of School/Centre/Institute) via email, to the DVC(R).
4. The DVC(R) will review the request, and provide advice, via email, regarding the outcome of the request.
   NB. In some cases where a waiver or reduction in indirect cost recovery is approved, the DVC(R) may also recommend a variation to the distribution of any indirect costs recovered.
5. Once the outcome of the request is known, calculate your project budget (see Budget Preparation).
6. A copy of the variation approval must be forwarded to the relevant R&ID Research Administration Officer, along with your project proposal documentation, prior to submission to the grantor, or commencement of contract negotiations with the project sponsor.