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2016-2017-2018
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
INTERSTATE ROAD TRANSPORT LEGISLATION (REPEAL)
BILL 2018
EXPLANATORY MEMORANDUM
(Circulated by authority of the Minister for Regional Development, Territories and Local
Government, the Hon Dr John McVeigh MP)
INTERSTATE ROAD TRANSPORT LEGISLATION (REPEAL) BILL 2018
OUTLINE
The Interstate Road Transport Legislation (Repeal) Bill 2018 (the Bill) will facilitate the
eventual closure of the Federal Interstate Registration Scheme (FIRS). It will do so through
the amendment and subsequent full repeal of the Interstate Road Transport Act 1985 and the
Interstate Road Transport Charge Act 1985 under which FIRS is established and
administered.
In particular, the Bill will:
close FIRS to new entrants and re-registration by existing FIRS operators from
1 July 2018
preserve provisions required to facilitate the operation of FIRS for a 12-month
transitional period after closure to new entrants and re-registrants
close FIRS to all operators by 30 June 2019.
Financial impact statement
FIRS is a budget neutral activity for the Commonwealth. The registration charges collected
under FIRS are redistributed to the states and territories in line with an agreed determination
based on a road use formula. States and territories are required under section 23 of the
Interstate Road Transport Act 1985 to expend the funds on road maintenance.
The process of collecting and redistributing registration fees will still take place under a
different regime; however, the Commonwealth will no longer be involved in the
administration of this process. Accordingly, the closure of FIRS has a nil financial impact.
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Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Interstate Road Transport Legislation (Repeal) Bill 2018
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 Interstate Road Transport Legislation (Repeal) Bill 2018 (the Bill):
a) close FIRS to new entrants and re-registration by existing FIRS operators from
1 July 2018
b) preserve provisions required to facilitate the operation of FIRS for a 12-month
transitional period after closure to new entrants and re-registrants
c) close FIRS to all operators by 30 June 2019.
Human rights implications
The amendments and subsequent repeals proposed by the Bill do not engage any of the
applicable rights or freedoms. The Bill facilitates a smooth transition to jurisdiction-based
registrations by preserving the operation of FIRS for existing operators for a transitional
period prior to FIRS closure.
Conclusion
This Bill is compatible with human rights as it does not raise any human rights issues.
Minister for Regional Development, Territories and Local Government,
the Hon Dr John McVeigh MP
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NOTES ON CLAUSES
Clause 1: Short Title
1. This clause is formal provisions specifying the short title of the Bill. It provides for the
Bill, once enacted, to be cited as the Interstate Road Transport Legislation (Repeal) Act
2018.
Clause 2: Commencement
2. Subclause (1) provides that each provision of this Bill specified in column 1 of the table
commences, or is taken to have commenced, on the day or at the time specified in
column 2 of the table.
3. Item 1 of the table provides that Sections 1 to 3 and anything in this Bill not elsewhere
covered by the table will commence on the day on which the Bill receives the Royal
Assent.
4. Item 2 of the table provides that Schedule 1 will commence on the day after the Bill
receives the Royal Assent.
5. Item 3 of the table provides that Schedule 2 will commence on 1 July 2019.
6. Subclause (2) provides that column 3 is for additional information that is not part of this
Act.
Clause 3: Schedule(s)
7. This clause is the formal enabling provision for the Schedules to the Act, providing that
legislation as specified in a Schedule is amended or repealed in accordance with the
applicable items of the Schedule. In Schedule 1, the Interstate Road Transport Act 1985 is
being amended. In Schedule 2, the Interstate Road Transport Act 1985 and the Interstate
Road Transport Charge Act 1985 are being repealed.
8. The clause also provides that the other items of the Schedules have effect according to
their terms. This is a standard enabling clause for transitional, savings and application
items in amending legislation.
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SCHEDULE 1 - Amendments
Part 1 - Amendments
Interstate Road Transport Act 1985
Item 1 - After subsection 9(2)
9. Item 1 inserts subsection 9(2A), stopping Registration Authorities from registering motor
vehicles or trailers under this Act where that registration would take effect on or after
1 July 2018.
10. Item 1 also inserts subsection 9(2B), clarifying that registrations taking effect after
1 July 2018 remain subject to cancellation (at the discretion of the relevant Registration
Authority) under subsection 11(1) of this Act.
Item 2 - At the end of subsection 9(4)
11. Item 2 inserts a note after subsection 9(4) that clarifies that Registration Authorities
should not re-register an existing motor vehicle or trailer under this Act where that
registration would take effect on or after 1 July 2018.
12. Accordingly, the registration of such a vehicle or trailer would necessarily be subject to
potential cancellation (at the discretion of the relevant Registration Authority) under
subsection 11(1) of this Act.
Item 3 - At the end of paragraphs 11(1)(a) to (e)
13. Item 3 amends paragraphs (a) to (e) of subsection 11(1) by adding "or". This is to ensure
that the paragraph has punctuation consistent with insertion of paragraph (g) of subsection
11(1) (see Item 4).
Item 4 - At the end of subsection 11(1)
14. Item 4 inserts paragraph 11(1)(g), providing grounds for Registration Authorities to cancel
registrations that are inconsistent with the transitional period allowed i.e. registrations that
would expire on or after 1 July 2019.
Part 2 - Application Provisions
Item 5 - Application provisions
15. Subitem 5(1) clarifies the operation of the subsection 9(2A), confirming that it only
applies to registrations under the Act granted on or after 1 July 2018.
16. Subitem 5(2) clarifies the operation of the subsection 9(2B), confirming that it only
applies to registrations under the Act granted before 1 July 2018.
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SCHEDULE 2 - REPEALS AND RELATED PROVISIONS
Part 1 - Repeals
Interstate Road Transport Act 1985
Item 1 - The whole of the Act
Interstate Road Transport Charge Act 1985
17. Item 1 repeals the whole of the Interstate Road Transport Act 1985.
Item 2 - The whole of the Act
18. Item 2 repeals the whole of the Interstate Road Transport Charge Act 1985.
Part 2 - Consequential Amendments
COAG Reform Fund Act 2008
Item 3 - Subsection 5(2) (note 4)
19. Item 3 repeals the whole of note 4 to subsection 5(2).
Item 4 - Paragraph 7(1)(c)
20. Item 4 repeals the whole of paragraph (c) to subsection 7(1).
Item 5 - Subsection 7(3) (note 2)
21. Item 5 repeals the whole of note 2 to subsection 7(3).
Part 3 - Transitional Provisions
Item 6 - Arrangements with States etc.
22. Paragraph (a) of Item 6 preserves the operation of the arrangements made under section 6
of the Interstate Road Transport Act 1985 to the extent they are required to give effect to
the transitional measures set out in this Part.
23. Paragraph (b) of Item 6 specifically preserves the operation of subsection 6(5) of the
Interstate Road Transport Act 1985 insofar as amounts received after the cessation of that
Act are still received on behalf of the Commonwealth (see Item 9 below regarding
treatment of funds so received).
Item 7 - Cancellation of registration
24. Item 7 provides that, in the event that a motor vehicle or trailer's registration would expire
after 1 July 2019 that motor vehicle or trailer's registration will be taken to be cancelled
immediately before that date.
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Item 8 - Refund of charges etc.
25. Subitem 8(1) preserves the operation of section 18 of the Interstate Road Transport Act
1985 to the extent that they facilitate the refund of a registration charge that is cancelled or
surrendered prior to 1 July 2019 and has not previously been paid back prior to that date.
26. Subitem 8(2) preserves the operation of section 19 of the Interstate Road Transport Act
1985 to the extent that it facilitates the refund of a registration charge in relation to the use
of a registered motor vehicle or trailer in accordance with paragraphs 19(1)(a) and (b) of
that Act, where this activity takes place prior to 1 July 2019 and has not previously been
paid back prior to that date.
27. Subitem 8(3) preserves the operation of subsection 19(3) of the Interstate Road Transport
Act 1985 in relation to a proceeding commenced before or after 1 July 2019 under
section 137.1 of the Criminal Code.
Item 9 - Arrangements relating to the Interstate Road Transport Account and COAG Reform
Fund
28. Item 9(1) preserves the operation of necessary provisions from the Interstate Road
Transport Act 1985 and the COAG Reform Fund Act 2008 after the commencement of
Part 1 of Schedule 2 to facilitate the winding up of the Federal Interstate Registration
Scheme.
29. Subitems 9(2) and 9(3) clarify the arrangements for crediting of funds collected in
accordance with the Interstate Road Transport Act 1985 and the Interstate Road
Transport Charge Act 1985 following the repeal of those Acts. Specifically, they require
that funds so collected be credited to the Interstate Road Transport Special Account until
20 October 2019. Funds collected between 21 October 2019 and 31 October 2019 are to
be credited directly to the COAG Reform Fund, are to be used for the maintenance and
upkeep of roads and be divided in a manner consistent with a determination made under
subsection 23(1) of the Interstate Road Transport Act 1985.
30. Item 9(4) clarifies debiting and crediting arrangements following the commencement of
Schedule 2, confirming that any funds received in accordance with the repealed legislation
in Part 1 of Schedule 2 be treated in accordance with section 23 of the Interstate Road
Transport Act 1985. Specifically, this would include a division of such funds according to
any standing determination made under subsection 23(1) of the Interstate Road Transport
Act 1985.
31. Subitems 9(5) and 9(6) provide clarification around the interpretation of certain terms in
Item 9. Subitem 9(5) specifies that funds credited to the COAG Reform Fund under
section 23 of the Interstate Road Transport Act 1985 capture funds credited under
subitem 9(3), whilst subitem 9(6) and clarifies what 'related instruments' may include.
Item 10 - Delegation
32. Item 10(a) preserves the operation of any instruments of delegation made under section 50
and in force before 1 July 2019 to the extent that they are required to facilitate the exercise
of powers required under these transitional provisions.
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33. Item 10(b) specifically confirms that where a power is delegated using such an instrument,
when exercised, that power may be deemed to have been exercised by the relevant
Regulatory Authority or Minister as required in the circumstances. Item 10(b) also
confirms that such a delegation does not preclude the same Regulatory Authority or
Minister exercising said power themselves.
Item 11 - Reconsideration and review of certain decisions
34. Item 11 specifically preserves the operation of section 51 in respect of any administrative
decisions made prior to 1 July 2019. This ensures that reviewable decisions made under
the Interstate Road Transport Act 1985 remain subject to review under the Administrative
Appeals Tribunal Act 1975 and facilitate an appropriate degree of accountability.
Item 12 - Transitional rules
35. Item 12 provides that the Infrastructure Minister may, by legislative instrument, make
rules prescribing matters required or permitted by the Bill to be prescribed by the rules, or
necessary or convenient to be prescribed for carrying out or giving effect to this Act.
These matters may relate to the closure of the Federal Interstate Registration Scheme
through the repeal of the legislation as set out in Part 1 of Schedule 2.
36. This item is a standard provision which will allow for additional transitional rules to assist
in giving effect to this Bill, including dealing with transitional matters that were not
foreseen when the Bill was being drafted. Rules may be made which, for example,
provide for the handling of any outstanding reporting obligations that may apply after the
commencement of Part 1 of Schedule 2.
37. The rules may modify the operation of Part 3 of Schedule 2. This enables any unforeseen
complications that may arise from the repeal of the Interstate Road Transport Act 1985
and the Interstate Road Transport Charge Act 1985 to be dealt with if they arise. For
example, a dispute regarding the enforcement of certain provisions under the
aforementioned repealed Acts settled after the commencement of Schedule 2 might result
in the receipt and reporting of funds of a character requiring different arrangements to
those anticipated by Part 3 of Schedule 2 (e.g. the award of costs associated with the
prosecution of an offence under the aforementioned Acts).
38. Subitem (2) also lists matters that may not be covered by the rules, to avoid doubt. These
include imposing penalties or taxes, creating appropriations or amending the Act.
39. For similar reasons, rules made for the closure of the Federal Interstate Registration
Scheme and repeal of the Interstate Road Transport Act 1985 and the Interstate Road
Transport Charge Act 1985 may be expressed to take effect retrospectively pursuant to
subitem 12(4) if that is necessary for their effective operation. For example, if a
Registration Authority does a thing after the commencement of Schedule 1 which gives
rise to some other obligation or liability under the aforementioned legislation beyond
30 June 2019, rules could be made to ensure that the relevant obligation or liability does
not operate in a manner inconsistent with other jurisdictions.
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