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2019-2020
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
GREAT BARRIER REEF MARINE PARK AMENDMENT (CORINAVIRUS ECONOMIC RESPONSE
PACKAGE) BILL 2020
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for the Environment,
the Honourable Sussan Ley MP)
GREAT BARRIER REEF MARINE PARK AMENDMENT (CORONAVIRUS ECONOMIC
RESPONSE PACKAGE) BILL 2020
GENERAL OUTLINE
Purpose
1. The purpose of the Great Barrier Reef Marine Park Amendment (Coronavirus
Economic Response Package) Bill 2020 (the Bill) is to amend the Great Barrier Reef
Marine Park Act 1975 (the GBRMP Act) to effectively waive the requirement for Great
Barrier Reef Marine Park (Marine Park) permission holders to remit the environmental
management charge (EMC) to the Great Barrier Reef Marine Park Authority (the
Authority) for the period 1 January 2020 to 31 March 2020. This is intended to provide
financial relief to the Great Barrier Reef tourism industry and other relevant
permission holders impacted by the COVID-19 (coronavirus) pandemic.
Context of amendments
2. On 23 March 2020, the Coronavirus Economic Response Package Omnibus Act 2020
was passed by Parliament as part of the Government's response to the COVID-19
pandemic. One of the measures in Schedule 6 of this Act was to amend the Great
Barrier Reef Marine Park Regulations 2019 (the GBRMP Regulations) to provide
economic relief to the Great Barrier Reef tourism sector to waive EMC from 1 April
2020 to 31 December 2020. Since the passing of the legislation to provide this relief,
additional calls from the Great Barrier Reef tourism sector have been made seeking
further assistance, including waiving EMC for the 1 January 2020 to 31 March 2020
quarter.
3. The Great Barrier Reef Marine Park (Environmental Management Charge - General)
Act 1983 and the Great Barrier Reef Marine Park (Environmental Management
Charge - Excise) Act 1993 impose that EMC is payable in accordance with Part VA of
the GBRMP Act. Part 13 of the GBRMP Regulations provides for the amount of EMC
and how it is to be collected.
4. The EMC is a charge imposed on a number of different commercial operations in the
Marine Park under chargeable permissions as defined in section 3 of the GBRMP Act
and prescribed in section 211 of the GBRMP Regulations. Different types of EMC are
payable depending on the type of operation permitted.
5. The bulk of the revenue collected through the EMC is from a form of EMC referred to
in the GBRMP Regulations as the standard tourist program charge (STPC). The
STPC is generally required to be paid by a visitor who takes part in a tourist program
under a chargeable permission. Up until commencement of the EMC waiver on 1 April
2020, the STPC required to be remitted to the Authority was:
(a) $6.50 per visitor (defined in section 5 of the GBRMP Regulations) for each day
up to a maximum of 3 days (sections 217 and 218 of the GBRMP
Regulations); and
(b) $3.25 per visitor, for very short tours or tours that arrive late and depart early
(sections 219 and 220 of the GBRMP Regulations).
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6. A tourist program operator, as the holder of a chargeable permission under which a
visitor takes part in a tourist program, is required to collect the STPC from the visitor
and remit the charge to the Authority in whichever of April, July, October or January is
the month after the quarter in which the amount is collected (section 226 of the
GBRMP Regulations).
7. The STPC was due to increase to $7.00 per day on 1 April 2020 (and to $3.50 for
tours that are 3 hours or less, or tours that arrive late and depart early) in accordance
with the formula applied in section 217 and subsection 219(2) of the GBRMP
Regulations. This increase will instead apply after the existing EMC waiver ceases on
31 December 2020.
8. Other types of EMC are provided for in sections 223 and 224 of the GBRMP
Regulations. The charges provided for in section 223 are payable by the permission
holder (as opposed to being payable by visitors). The charges in section 224 are
payable by visitors (and are collected from visitors by the permission holders who
then remit the charge to the Authority). In addition to waiving the STPC, the waiver of
the EMC that commenced on 1 April 2020 was also a waiver of these other types of
EMC.
9. The collected EMC revenue forms part of the Consolidated Revenue Fund. The
Authority receives an appropriation out of the Consolidated Revenue Fund that is
equivalent to the EMC collected for the purpose of the performance of the functions of
the Authority (subsection 65A(2) of the GBRMP Act).
10. Due to the economic pressures currently faced by permission holders, including Great
Barrier Reef tourism operators, as a result of the COVID-19 pandemic, permission
holders have been unable to remit to the Authority the EMC for the period 1 January
2020 to 31 March 2020.
Outline of the Bill
11. The principal provisions contained in the Bill will give effect to the intended waiver of
the obligation on the holder of a chargeable permission to remit the EMC to the
Authority by:
(a) Waiving the requirement for permission holders to remit the fixed charges
payable by permission holders for the 1 January 2020 to 31 March 2020
quarter; and
(b) Providing for a grant to permission holders equal to the amounts collected by
permission holders from visitors for the 1 January 2020 to 31 March 2020
quarter in order to set-off the collected amount which would otherwise be
payable to the Authority (with the practical effect of this being that the
requirement on the permission holder to remit the collected amount to the
Authority is waived).
FINANCIAL IMPACT
12. The impact on Government will be reduced revenue remitted to the Authority for the
period 1 January 2020 to 31 March 2020 estimated to be approximately $2.9 million,
based on the same quarter of the previous year. This amount is to be appropriated to
the Authority as part of the COVID-19 Economic and Fiscal Response Package
agreed to by the Prime Minister on 3 April 2020.
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STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
GREAT BARRIER REEF MARINE PARK AMENDMENT (CORONAVIRUS ECONOMIC
RESPONSE PACKAGE) BILL 2020
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
1. The purpose of the Great Barrier Reef Marine Park Amendment (Coronavirus
Economic Response Package) Bill 2020 (the Bill) is to amend the Great Barrier Reef
Marine Park Act 1975 (the GBRMP Act) to effectively waive the requirement for Great
Barrier Reef Marine Park (Marine Park) permission holders to remit the environmental
management charge (EMC) to the Great Barrier Reef Marine Park Authority (the
Authority) for the period 1 January 2020 to 31 March 2020. This is intended to provide
financial relief to the Great Barrier Reef tourism industry and other relevant
permission holders impacted by the COVID-19 (coronavirus) pandemic.
13. The principal provisions contained in the Bill will give effect to the intended waiver of
the obligation on the holder of a chargeable permission to remit the EMC to the
Authority by:
(c) Waiving the requirement for permission holders to remit the fixed charges
payable by permission holders for the 1 January 2020 to 31 March 2020
quarter; and
(d) Providing for a grant to permission holders equal to the amounts collected by
permission holders from visitors for the 1 January 2020 to 31 March 2020
quarter in order to set-off the collected amount which would otherwise be
payable to the Authority (with the practical effect of this being that the
requirement on the permission holder to remit the collected amount to the
Authority is waived).
Human rights implications
2. The Bill engages the right to freedom of movement (International Covenant on Civil
and Political Rights, article 12).
3. The funds received from the EMC are vitally important in the day-to-day management
of the Marine Park and in improving its long-term resilience. The EMC is a charge
associated with most commercial activities, including tourism operations, non-tourist
charter operations, and construction and operation of facilities. For most standard
tourism operations, Marine Park visitors participating in a tourist activity are liable to
pay the charge to the holder of the chargeable permission for the relevant tourist
program that the visitor is taking part in, who then remits the charge to the Authority.
Other operations in the Marine Park such as those involving the hire of equipment,
installation and operation of tourist facilities, underwater observatories, sewage
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outfalls and vending operations, attract quarterly EMC charges to the Authority. All
funds received as EMC payments are applied directly to management of the Marine
Park.
4. The EMC restricts the freedom of movement as without payment of the charge visitors
to the Marine Park are not able to engage in activities that attract the charge in the
Marine Park, and permission holders are not permitted to operate. This restriction is
reasonable as it is consistent with the overall balancing of providing for entry and use
to the Marine Park and is a small contribution to the protection and conservation of
the environment. It is also a necessary and proportionate measure given that the
funds are directed to the day-to-day management of the Marine Park and in improving
its long-term resilience, and the funds are raised from the users of the Marine Park.
5. The amendments made by the Bill waive/set-off the requirement for permission
holders to pay fixed charges owed to the Authority for the quarter 1 January 2020 to
31 March 2020, and any charges collected from visitors for that quarter are able to be
retained by permission holders. These amendments indirectly decrease the restriction
on freedom of movement by making EMC obligations less onerous for permission
holders in the wake of the coronavirus pandemic, so that where possible permission
holders may continue to operate without having to meet these obligations.
Conclusion
6. The Bill is compatible with human rights as it indirectly decreases existing limitations
on human rights, and the existing restrictions are necessary, reasonable and
proportionate.
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NOTES ON CLAUSES
Preliminary
Clause 1 Short Title
1. This clause provides for the short title of the Act to be the Great Barrier Reef Marine
Park Amendment (Coronavirus Economic Response Package) Act 2020.
Clause 2 Commencement
2. This clause provides for commencement of each provision in the Act, as set out in the
table. Item 1 in the table provides that the whole of the Act will commence on the day
after it receives Royal Assent.
Clause 3 Schedules
3. This clause provides that legislation that is specified in a Schedule to the Act will be
amended or repealed as set out in the Schedule, and that any other item in a
Schedule to the Bill has effect according to its terms.
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Schedule 1 - Amendment of the Great Barrier Reef Marine Park Act 1975
Great Barrier Reef Marine Park Act 1975
Item 1 At the end of Division 2 of Part VA
4. This item inserts a new section 39FAA at the end of Division 2 of Part VA of the
GBRMP Act entitled 'One-off waiver of environmental management charge payable
by permission holder-coronavirus economic response'.
5. Subsection 39FAA(1) sets out the objects of the section.
6. The purpose of subsection 39FAA(2) is to clarify that section 39FAA applies to
charges payable by permission holders for the 1 January 2020 to 31 March 2020
quarter. This is intended to capture the fixed charges that are payable by permission
holders in accordance with section 223 of the GBRMP Regulations for the relevant
quarter.
7. Subsection 39FAA(3) is intended to have the effect of waiving the requirement for
permission holders to remit these fixed charges to the Authority.
8. Pursuant to section 39FB of the GBRMP Act and section 225 of the GBRMP
Regulations these fixed charges were due to be remitted to the Authority on 1 April
2020. The majority of permission holders have been unable to remit the charges to
the Authority on the due date due to being financially impacted by the coronavirus
pandemic. Ordinarily where EMC is not remitted to the Authority when it is due, a late
payment penalty applies pursuant to section 39G of the GBRMP Act. Subsection
39FAA(3) clarifies that any late payment penalty is taken to be waived.
9. The Authority has received payments of these fixed charges by a very small
percentage of permission holders. Given that the requirement to pay the charge is
being waived, the inclusion of subsection 39FAA(4) is necessary to ensure that
permission holders who have already paid the charge prior to commencement of the
waiver are entitled to have these amounts refunded to them.
10. Subsection 39FAA(5) is required to appropriate the necessary refunds under
subsection 39FAA(4) from the Consolidated Revenue Fund.
11. Given that the refunds are a one-off and only apply to the 1 January 2020 to 31 March
2020 EMC quarter, the appropriation is to self-repeal after 31 December 2020
pursuant to subsection 39FAA(6).
Item 2 At the end of Division 2A of Part VA
12. This item inserts a new section 39FG at the end of Division 2 of Part VA of the
GBRMP Act entitled 'One-off grant to holders of chargeable permissions-coronavirus
economic response'.
13. Subsection 39FG(1) sets out the objects of the section.
14. The purpose of subsection 39FG(2) is to clarify that section 39FG applies to charges
collected from visitors by permission holders for the 1 January 2020 to 31 March 2020
quarter. This is intended to capture the standard tourist program charge payable by
visitors in accordance with sections 217, 218, 219 and 220 of the GBRMP
Regulations, as well as the charges payable by visitors in accordance with section
224 of the GBRMP Regulations, for the relevant quarter.
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15. These charges have already been collected from visitors by permission holders for
the relevant quarter. For this reason, it is not technically possible for the amounts
collected to be waived. Instead, paragraph 39FG(3)(a) and subsection 39FG(4) are
together intended to effectively operate as a waiver by providing for a grant to a
permission holder equal to any amount that has been collected from a visitor by a
permission holder, which is to set-off any collected amount that would have otherwise
been payable to the Authority pursuant to section 39FD of the GBRMP Act. It is not
intended that any action is needed by the Authority or by a permission holder to give
effect to the grant and set-off. Rather, paragraph 39FG(3)(a) and subsection 39FG(4)
are intended to be self-executing so that the grant automatically acts as a set-off
against the amount that would otherwise be owed by the permission holder to the
Authority.
16. Pursuant to section 39FB of the GBRMP Act and section 226 of the GBRMP
regulations, the charges collected from visitors by permission holders were due to be
remitted to the Authority on 1 April 2020. The majority of permission holders have
been unable to remit the collected charges to the Authority on the due date due to
being financially impacted by the coronavirus pandemic. Ordinarily, where EMC is not
remitted to the Authority when it is due a late payment penalty applies pursuant to
section 39G of the GBRMP Act. Paragraph 39FG(3)(b) is necessary to clarify that the
collected amounts are taken to have not been due to be remitted to the Authority on 1
April 2020, and the late payment penalty does not apply.
17. Subsection 39FG(5) is required to appropriate the necessary grants under paragraph
39FG(3)(a) from the Consolidated Revenue Fund.
18. Given that the grants are a one-off and only apply to the 1 January 2020 to 31 March
2020 EMC quarter, the appropriation is to self-repeal after 31 December 2020
pursuant to subsection 39FG(6).
19. The following examples demonstrate how section 39FG is intended to operate:
(a) Example 1: A permission holder has collected EMC from visitors in
accordance with the GBRMP Act and GBRMP Regulations during the quarter
1 January 2020 to 31 March 2020. The permission holder failed to remit the
collected amount to the Authority when it fell due on 1 April 2020. Upon
commencement of section 39FG, the amount collected is no longer required to
be remitted to the Authority as it is automatically set-off against a grant from
the Commonwealth equal to the amount that was collected. The grant and set-
off is self-executing so that no action is required to be taken by the permission
holder or by the Commonwealth (with the practical effect being that any
amounts owing by permission holders to the Authority are waived). No late
payment penalty applies to the permission holder, and the collected amount is
taken to have never been due to be remitted to the Authority.
(b) Example 2: A permission holder has collected EMC from visitors in
accordance with the GBRMP Act and GBRMP Regulations during the quarter
1 January 2020 to 31 March 2020. The permission holder remitted the
collected amount to the Authority when it fell due on 1 April 2020. Upon
commencement of section 39FG, a grant is payable by the Commonwealth
from the Consolidated Revenue Fund to the permission holder for an amount
equal to the collected amount.
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