Commonwealth of Australia Explanatory Memoranda

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INTERSTATE ROAD TRANSPORT CHARGE AMENDMENT BILL 2008

                                         2008


     THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA


                           House of Representatives




  Interstate Road Transport Charge Amendment Bill 2008



                    EXPLANATORY MEMORANDUM




(Circulated by Authority of the Minister for Infrastructure, Transport, Regional
Development and Local Government, the Honourable Anthony Albanese MP.)
       Interstate Road Transport Charge Amendment Bill 2008

OUTLINE

The purpose of the Interstate Road Transport Charge Amendment Bill 2008 (the Bill)
is to amend the Interstate Road Transport Charge Act 1985 (IRTCA) which imposes
registration charges for heavy vehicles registered under the Australian Government's
Federal Interstate Registration Scheme (FIRS). The Bill implements the registration
charge elements of the 2007 Heavy Vehicle Charges Determination (the
Determination) which sets out national charges for heavy vehicles and trailers. The
Determination was agreed to by the Australian Transport Council on 29 February
2008 and will be implemented by the Australian Government and the States and
Territories from 1 July 2008.

The Bill allows Regulations to be made to implement the national heavy vehicle
charges detailed in the Determination, for application to FIRS vehicles. The
implementation of the Determination is part of the national road transport reform
agenda, as agreed under the Inter-Governmental Agreement for Regulatory and
Operational Reform in Road, Rail and Intermodal Transport. The Determination
implements Council of Australian Governments' request to fully recover the costs of
provision of the road network to the heavy vehicle industry.

Financial Impact Statement

There is no net impact on the Australian Government Budget flowing from this
amendment. All revenue from FIRS charges is returned to the state and territory
governments under an agreed distribution formula that accounts for road usage by
FIRS heavy vehicles.

REGULATION IMPACT STATEMENT

The amendment to the Interstate Road Transport Charge Act 1985 reflects the
national charges detailed in the 2007 Heavy Vehicle Charges Determination and
agreed by the Australian Transport Council on 29 February 2008.

A Regulation Impact Statement (RIS) has been completed by the National Transport
Commission and approved by the Office of Best Practice Regulation as part of the
process of making the 2007 Heavy Vehicle Charges Determination. That process
included extensive public consultation.

A copy of the RIS (Volumes I and II), is attached.




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         Interstate Road Transport Charge Amendment Bill 2008

NOTES ON CLAUSES

Clause 1: Short Title

1.    This clause provides for the Act to be called the Interstate Road Transport
Charge Amendment Act 2008.

Clause 2: Commencement

2.       This clause provides for this Act to come into effect on 1 July 2008 which is
         the date agreed by the Australian Government and the states and territories for
         the national implementation of the new charges under the Determination.

Clause 3: Schedules

3.       Clause 3 provides that each Act specified in a Schedule to the Bill is amended
         or repealed in accordance with the terms set out in the Schedule.

Schedule 1 - Amendments

Interstate Road Transport Charge Act 1985

Item 1

Item 1 is a formal provision which amends the title. The terms `motor vehicle and
trailers' are replaced by `vehicle' as `vehicle' is defined in the Bill to include `trailer'.

Item 2

Item 2 inserts new subsections 3A, 3B and 3C.

New subsection 3A provides definitions for terms used throughout the Bill. These are
terms included in the model legislation which is being adopted in the Bill.

New subsection 3B describes measurements to determine categories of axles to
facilitate the allocation of a vehicle to the appropriate charging category.

New subsection 3C facilitates the allocation of a vehicle to the appropriate charging
category where a converter dolly or low loader dolly is to be used in conjunction with
another trailer.

New paragraph 3C(1) specifies the combinations which are to be considered as one
trailer.

New paragraph 3C(2) explains that the provisions in 3C(1) relate only to the
determination of the number of trailers that a prime mover or truck are nominated to


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tow. For charging purposes, a separate charge still applies for each converter dolly or
low loader dolly and for each semi trailer.

Item 3

Item 3 repeals existing subsection 4(1) and substitutes the following:

New subsection 4(1) imposes a charge on the registration of vehicle in a category
listed in subsection 1A of the Bill.

New paragraph 4(1A) lists the various vehicle categories to which a charge is payable
in relation to registration.

Item 4

Item 4 omits `motor vehicles and trailers' from Subsection 4(2) and substitutes
`vehicles', as 'vehicle' is defined in the Bill to include trailers.

Item 5

Item 5 amends subsection 4(3) which limits the application of the charge imposed in
subsection 4(1) to vehicles with a mass rating for charging of more than 4.5 tonnes.

Item 6

Item 6 repeals section 5 and substitutes the following:

New section 5(1) amends the previous provision 5(1) to incorporate references to the
categories of vehicle listed under subsection 4(1A) of the Bill.

New subsection 5(2) amends the previous section 5(1A) so as to be consistent with
the new provisions of the Act.

New subsection 5(3) states that the amount of charge for a full year is worked out in
accordance with the Regulations. The Regulations provide for the charges either in a
table of charges, depending on the year, or the application of an annual adjustment
process for future years.

New subsection 5(4) requires that regulations made under this Act that provide for the
amount of charges must reflect the national charges and annual adjustment processes
that are agreed by the Australian Transport Council.

New subsection 5(5) This retains the old section 5(1B) provision. This provision
details the formula to be used to work out the amount of charge that applies for the
registration of a vehicle for periods of less than a full year.

New subsection 5(6) The retains the old section 5(2) provision for the calculation of
registration charges where a vehicle falls within 2 or more categories specified in
section 4(1A).



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Item 7

Item 7 repeals section 5A which provided for an annual automatic adjustment. The
new process for applying future annual adjustments will be set out in the regulations
made pursuant to sections 3 and 4 of the Bill.

Item 8

Item 8 omits the reference to section 5A which is repealed by Item 7.

Item 9

Item 9 amends subsection 6(2) by replacing references to `year', by `financial year',
to reflect references in other sections of the Bill.

Item 10

Item 10 adds a reference to section 5 in relation to regulation making powers.

Item 11

Item 11 repeals the existing Schedule which includes a list of definitions as well as a
reference to a table of charges. The Schedule is replaced by provisions in the Bill
which includes most of the existing definitions as well as additional national
definitions aligning with new national charges. The new charges will be set out in the
regulations made pursuant to sections 3 and 4 of the Bill.

Item 12

Item 12 provides that this amendment applies from the financial year beginning 1 July
2008 and later financial years. This is the implementation date agreed by Australian
Transport Council Ministers.




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