Commonwealth of Australia Explanatory Memoranda Commonwealth of Australia Explanatory Memoranda[Index] [Search] [Download] [Bill] [Help]
2010 - 2011 - 2012
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
GREENHOUSE AND ENERGY MINIMUM STANDARDS
(REGISTRATION FEES) BILL 2012
REVISED EXPLANATORY MEMORANDUM
THIS MEMORANDUM TAKES ACCOUNT OF AMENDMENTS MADE BY
THE HOUSE OF REPRESENTATIVES TO THE BILL AS INTRODUCED
(Circulated by authority of the Minister for Climate Change and Energy
Efficiency,
the Honourable Greg Combet AM MP)
Greenhouse and Energy Minimum Standards (REGISTRATION FEES) BILL 2012
GENERAL OUTLINE
Purpose
The Greenhouse and Energy Minimum Standards Bill 2012 will establish a
national legislative framework for regulating the energy efficiency of
products supplied or used within Australia. This national framework will
allow the work of Australia's Equipment Energy Efficiency (E3) Program to
continue under a more comprehensive and consistent framework. The
Greenhouse and Energy Minimum Standards (Registration Fees) Bill 2012 (the
GEMS (Registration Fees) Bill) will accompany the Greenhouse and Energy
Minimum Standards Bill 2012, to establish legislative power to charge
registration fees as part of the E3 Program.
Background
Australia's E3 Program has developed into a popular and effective mechanism
for reducing energy costs and greenhouse gas emissions. The E3 Program has
proven so successful that, in 2005, 83% of surveyed Australian consumers
reported referring to the Energy Rating Labels when purchasing major
household appliances. In 2010, the energy savings arising from the more
efficient air conditioners and refrigerators required by the E3 Program was
calculated at 6.6 terawatt hours, a benefit valued at over $1 billion.
Australian governments recognise the value of the E3 Program for improving
energy efficiency and the potential to achieve greater efficiencies by
moving the Program to a more consistent, national footing. For these
reasons, the Australian Government undertook to expand the E3 Program
beyond electrical equipment as part of its Solar Schools-Solar Homes
election commitment in 2007. This commitment was reinforced in July 2009
when the Council of Australian Governments issued the National Strategy on
Energy Efficiency, with a commitment to establish national legislation to
regulate product energy efficiency.
The national legislation will allow the E3 Program to continue on a more
consistent and comprehensive basis, with an expanded range of products and
a strengthened compliance regime. Under the new framework, the E3 Program
will continue to levy registration fees from businesses that deal with
regulated products. These fees will recover a portion of the costs incurred
administering the Program, for example, the cost of processing registration
applications and costs incurred monitoring compliance with the Act.
In contrast to fees to recover the cost of processing applications, fees
charged to recover costs of the compliance monitoring regime may constitute
a levy by a public authority for public purposes, not a fee for services
rendered. Fees that are not for services rendered may constitute a tax so,
in accordance with section 55 of the Australian Constitution, legislative
authority to charge such fees is established in a law dealing solely with
this issue. For these reasons the GEMS (Registration Fees) Bill is drafted
separately to, but in support of, the Greenhouse and Energy Minimum
Standards Bill 2012 and the expanded E3 Program.
Financial Implications
This Bill will authorise registration fees under the E3 Program that are
forecast to accrue $11.6 million over the five financial years from 2012-
2013 to 2016-2017. Fee revenue will be Budget neutral as the Australian
Government directed, in the 2012-2013 Budget, that income from registration
fees under this Act would offset the costs of the E3 Program.
2. REGULATORY IMPACT STATEMENT
Registration fees are charged under the existing E3 Program. The GEMS
(Registration Fees) Bill therefore does not introduce a proposal that
carries any new regulatory burden for Australian individuals or businesses.
For these reasons the Office of Best Practice Regulation has advised that a
formal Regulatory Impact Statement is not required for the GEMS
(Registration Fees) Bill.
Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary
Scrutiny) Act 2011
Greenhouse and Energy Minimum Standards (Registration Fees) Bill 2012
This Bill is compatible with the human rights and freedoms recognised or
declared in the international instruments listed in section 3 of the Human
Rights (Parliamentary Scrutiny) Act 2011.
Overview of the Bill
The GEMS (Registration Fees) Bill 2012 accompanies the Greenhouse and
Energy Minimum Standards Bill 2012. Together, these Bills will establish a
national framework to regulate energy efficiency and product labelling
standards, transferring Australia's Equipment Energy Efficiency (E3)
Program to a national legislative basis.
The GEMS (Registration Fees) Bill establishes the legislative basis for the
Regulator, established by the main GEMS Bill, to levy fees from businesses
registering product models under the main GEMS Bill. The GEMS Bill requires
registration of regulated product models to maintain the existing practice
of the E3 Program, ensuring the Regulator can monitor the range of
regulated product models that enter the Australian market.
Registration fees will recover costs incurred under the E3 Program,
including the costs of processing registration applications and a portion
of the costs of monitoring compliance with the GEMS Bill. As compliance
costs may not constitute a direct fee for service but a charge to raise
funds for public purposes, the GEMS (Registration Fees) Bill establishes
legislative power to impose fees as taxes. Consistent with section 55 of
the Australian Constitution, the power to establish fees as taxes is
established separate from other provisions.
Human rights implications
This Bill does not engage any of the applicable rights or freedoms.
Conclusion
This Bill is compatible with human rights as it does not raise any human
rights issues.
The Hon Greg Combet AM MP
Minister for Climate Change and Energy Efficiency
Minister for Industry and Innovation
Notes on Clauses
Part 1-Preliminary
Clause 1 Short Title
1. Clause 1 establishes the short title of the Act as the Greenhouse and
Energy Minimum Standards (Registration Fees) Act 2012.
Clause 2 Commencement
2. Clause 2 establishes the commencement date for various portions of the
Act. The preliminary sections 1 and 2 commence on the day the Act
receives Royal Assent, while the remainder of the Act commences on 1
October 2012 to coincide with the commencement of the Greenhouse and
Energy Minimum Standards Act 2012.
Clause 3 Act binds the Crown
3. Clause 3 ensures the Act binds the Crown, to the extent the Crown can
be bound to pay fees to register products for use or supply under the
Equipment Energy Efficiency Program.
Clause 4 External Territories
4. Clause 4 extends the operation of the Act to Australia's external
territories, ensuring that registration fees can be levied on persons
located in, and with regard to applications made in, the external
territories.
Clause 5 Extraterritorial application
5. Clause 5 extends the operation of the Act beyond Australia's
territorial jurisdiction, ensuring that registration fees can be levied
on persons located overseas and with regard to applications made
overseas.
Clause 6 Act does not impose tax on property of a state
6. The Act is created with an expectation that governments - federal,
state and territory - would pay registration fees for any product
models that a government registers under the Greenhouse and Energy
Minimum Standards Act 2012.
7. However, should a question arise whether this would amount to taxation
imposed on property belonging to a state, clause 6 ensures the Act
should be construed as not intending to impose taxation on property
belonging to a state. If registration fees were found to be a form of
taxation on property of a state, clause 6 would excuse the state from
any legal obligation to pay those fees. Nothing would prevent a state
voluntarily paying registration fees.
Clause 7 Definitions
8. Clause 7 provides definitions of particular terms used within the Act,
to assist interpretation.
Part 2-Registration fees
Clause 8 Imposition of registration fees
9. Clause 8 permits the Regulator to specify fees for applications to
register products under the Greenhouse and Energy Minimum Standards Act
2012. Registration fees may be expressed as a single fee, or as two or
more fees (e.g. one fee related to the costs of registration services
and one fee related to compliance monitoring costs).
10. Fees must be specified in a legislative instrument, as opposed to
specified in this Act or the Greenhouse and Energy Minimum Standards
Act 2012. This will help to strike the correct balance between
providing certainty for people attempting to plan registration fee
payments and ensuring flexibility to alter fees as necessary in the
future. Specifying fees in legislative instruments ensures that fees
are developed in a transparent manner, subject to regulatory impact
assessment and tabled in Parliament for the public record.
Clause 9 Matters relating to amount of fees
11. Clause 9 permits legislative instruments issued by the Regulator under
clause 8 to specify registration fees by nominating an amount to be
paid or a method or formula for calculating registration fees.
Specifying fees in legislative instruments, as opposed to on the face
of the Act itself, ensures flexibility to change fees over time.
Specifying fees in legislative instruments also ensures that fees are
subject to impact assessments and tabled in Parliament.
12. Subclause 9(2) establishes registration fees as a cost-recovery
mechanism, for certain costs only. When specifying a fee, the Regulator
may take into account the costs of processing applications for
registration under the Act, and costs incurred monitoring compliance
with the Act.
13. Costs incurred processing registration applications may include costs
such as the staff required to process and approve applications, the
costs of the establishing and maintaining the online portal and
database for registration applications, the cost of procuring
specialist advice to identify whether niche products comply with
relevant standards, or the cost of communicating with existing and
prospective applicants. Costs incurred in compliance monitoring may
include testing products for compliance with relevant standards,
training inspectors and conducting store audits or online monitoring to
identify whether products comply with standards, and the cost of
communicating with persons who are required to comply with the Act.
14. Recovering costs associated with processing applications and monitoring
compliance will assist the Regulator to deliver improved registration
and compliance programs as part of the E3 Program.
Clause 10 Regulations
15. Clause 10 permits the Governor-General to make Regulations to prescribe
any matters convenient or necessary to carry out or give effect to the
Greenhouse and Energy Minimum Standards (Registration Fees) Act 2012.
Index]
[Search]
[Download]
[Bill]
[Help]