Document background
The Indirect Cost Agreement serves as a critical document for organizations operating in Australia that need to establish clear and compliant methodologies for handling indirect costs. This agreement is particularly essential when organizations need to allocate overhead expenses, administrative costs, and other indirect charges across various projects, departments, or funding sources. It ensures transparency and accountability in cost allocation while maintaining compliance with Australian accounting standards, tax regulations, and relevant legislation. The document is commonly used in research institutions, government contracting, and complex business arrangements where indirect cost recovery is crucial. It provides a structured approach to calculating and managing indirect costs, including detailed methodologies, review procedures, and reporting requirements.
