In some instances government owned providers may be subject to costs imposed by Government policy, but from which private providers are exempt. A public sector provider may carry additional obligations by reason of its public sector ownership - for instance different industrial relations standards, different safety standards, different recruitment standards, different reporting requirements and so forth. In these cases, an allowance for these cost disabilities is to be made in constructing the PSC. The adjustments required for these allowances can be complex, so that before making such allowances, agencies should consult the PGE for guidance. Materiality is also a consideration.
In adjusting for cost disabilities, the cost disability must unambiguously be caused by Government impost.