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2008
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
THE HOUSE OF REPRESENTATIVES
SAVE OUR SOLAR (SOLAR REBATE PROTECTION) BILL 2008
EXPLANATORY MEMORANDUM
(Circulated by the Hon Greg Hunt MP,
Shadow Minister for Climate Change, Environment and Urban Water)
SAVE OUR SOLAR (SOLAR REBATE PROTECTION) BILL 2008
EXPLANATORY MEMORANDUM
GENERAL OUTLINE
The Solar Homes and Communities Plan provides cash rebates from the
Commonwealth Government for the installation of solar photovoltaic systems
on homes and community use buildings. The maxiumum rebate for private homes
is $8,000.The previous Coalition Government introduced a non-means-tested
rebate for solar (photovoltaic) systems of $8,000 per household. As a
consequence, demand tripled. This program was not means-tested as it was
an environmental measure. Prior to Budget night 2008, there was all-party
support for this measure.
In the 2008-09 Budget, the Rudd Labor Government introduced a means- test
for eligibility to receive rebates. From 14 May 2008, only households with
a combined annual taxable income of less than $100,000 are eligible. The
introduction of a means-tested eligibility threshold of $100,000 brought
the solar photovoltaic systems rebate into line with the existing
eligibility threshold for the Commonwealth's Solar Hot Water Rebate. has
had a devastating effect on the solar industry in Australia.
The rebate program, including the means-tested eligibility threshold and
other guidelines, under the Solar Homes and Communities Plan, has no direct
legislative basis. It is administered under Departmental guidelines. The
effect of the Save or Solar (Solar Rebate Protection) Bill 2008 is to
require the responsible Minister (currently the Minister for Environment,
Heritage and the Arts) to determine new guidelines for the operation of the
Solar Homes and Communities Plan, and that this be done via a legislative
instrument under the Legislative Instruments Act 2003. This would mean that
the guidelines would be subject to Parliamentary scrutiny and potential
disallowance by either House of Parliament under section 42 of the
Legislative Instruments Act 2003.
FINANCIAL IMPACT
The Bill would have no direct financial impact. The Solar Homes and
Communities Plan is an existing Commonwealth program. If either House were
to subsequently exercise a disallowance there could at that point be a
financial impact, but the Bill itself has no direct financial impact..
NOTES ON CLAUSES
Clause 1 - Short title
This clause provides for the short title of the Act.
Clause 2 - Commencement
The Act would commence on the day on which it receives the Royal Assent.
Clause 3 - Objects of the Act
The broad objective of the Act is to improve the operation of the Solar
Homes and Communities Plan by establising a legislative basis for, and thus
increased Parlaimentary scrutiny of, the Plan.
Clause 4 - Interpretation
This defines certain key terms and phrases contained in the Act.
Clause 5 - Guidelines for the scheme
This requires the responsible Minister to determine new written guidelines
for the operation of the Solar Homes and Communities Plan. The guidelines
must contain eligibility requirements for the payment of rebates and also
the types of solar systems to which the Plan applies. The Minister's
determination is a legislative instrument under the Legislative Instruments
Act 2003.
Clause 6 - Responsibility of the Minister
This provides that the Minister has general responsibility for the
operation of the Plan, including the guidelines referred to in clause 5. In
the event the guidelines are disallowed by Parliament under section 42 of
the Legislative Instruments Act 2003, the Minister must determine
replacement guidelines so the Plan can continue operating.
Note that a new determination would be subject to section 48 of the
Legislative Instruments Act 2003. To paraphrase section 48, where an
instrument or a provision of an instrument, ('the first instrument') has
been disallowed by either House of Parliament, a replacement instrument or
provision of an instrument, that is subtantially the same as the first
instrument, cannot be made within six months of the disallowance of the
first instrument unless the relevant House consents to the remaking.
Clause 7 - Responsibility of the Secretary
This provides that the Departmental Secretary has general responsibility
for the administration of the Plan.
Clause 8 - Payments
This prohibits any payment in relation to installation of a solar system
unless all requirements of the clause 5 guidelines have been satisfied.
Clause 9 - Principles of Administration
This requires the Secretary to have regard to certain broad principles in
administering the Plan.
Clause 10 - Regulations
This is a standard regulation-making power for the carrying out of, or
giving effect to, the Act.