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2010
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
SENATE
Plastic Bag Levy (Assessment and Collection) Bill 2010
EXPLANATORY MEMORANDUM
(Circulated by authority of Senator B Brown)
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Plastic Bag Levy (Assessment and Collection) Bill 2010
Outline
The Plastic Bag Levy (Assessment and Collection) Bill 2010 provides for the assessment and
collection of a levy on the use of plastic bags at retail points of sale.
The policy intention behind the Bill is to reduce the use of plastic bags.
NOTES ON CLAUSES
Part 1 - Preliminary
Clause 1 - Short Title
This is a formal provision specifying the short title.
Clause 2 - Commencement
The Bill's provisions are to commence the day after the Bill receives Royal Assent
Clause 3 - Object
Clause 3 provides that the object of the Act is to provide for the assessment, collection and
administration of a levy on plastic bags where such bags are used at retail points of sale.
Clause 4 - Definitions
Clause 4 defines terms used in the Bill, including "plastic bag". A "plastic bag" is defined as:
· a plastic carrier bag with handles designed for carrying goods purchased by
consumers;
· a plastic flat bag, with no gussets or handles, that is designed for carrying goods
purchased by customers; and
· a plastic refuse bag designed for carrying waste.
Exemptions to the general definition of a plastic bag are found in clause 5 of the Bill.
Clause 5 - Exemptions
Clause 5 defines classes of plastic bags that are exempt from the collection of the levy. The
exemptions include:
· plastic bags used solely to contain certain unpackaged food products;
· food packaging for in-room patient care at hospitals and nursing homes and not-for-
profit services such as meals on wheels; and
· paper packaging coated with polyethylene plastic on only one side.
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Part 2 - Liability for Levy
Clause 6 - Levy
Clause 6 provides that the levy imposed by the Plastic Bag Levy Imposition Act 2010 must be
levied and paid by the retailer. The levy is payable by the retailer if a good is sold by the
retailer to a person and the good is packaged in a plastic bag supplied by the retailer.
The levy to be paid is intended to be 25c per plastic bag.
Clause 7 - Charging plastic bag levy
Clause 7 provides that the retailer must charge the customer the amount of the levy for the
provision of a plastic bag, except if the bag is exempted under clause 5.
Clause 8 - Itemisation of levy
Clause 8 provides that the retailer must itemise a charge made under section 7 on any
invoice, receipt or docket issued by the retailer.
Clauses 9 - 16
Clauses 9-16 outline the provisions dealing with the payment by the retailer to the
Commission of Taxation of the amounts collected through charging the levy to customers.
The retailer must keep a record of the number of plastic bags in stock and purchased or
acquired.
The manner and timing of for payment of the levy will be prescribed in regulations.
There are provisions relating to the late or non-payment of the levy.
The Commission of Taxation has the general administration of the Bill.
Part 3 - Miscellaneous
Clause 17 - Annual report of levy amount to Parliament
Clause 17 provides the Commission of Taxation is to present a report to each House of
Parliament on the amount of levy assessed under the Bill and the operation of the Bill in the
preceding year. The report is to be provided not later than 2 months after 30 June each
year.
Clause 18 - Regulations
Clause 18 provides that the Governor-General may make regulations prescribing matters
required or permitted by the Bill or necessary and convenient for giving effect to the Bill.
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