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OZONE PROTECTION AND SYNTHETIC GREENHOUSE GAS MANAGEMENT AMENDMENT REGULATION 2012 (NO. 3) (SLI NO 260 OF 2012)

EXPLANATORY STATEMENT

 

Select Legislative Instrument 2012 No. 260

 

Issued by the authority of the Parliamentary Secretary for Sustainability

and Urban Water

 

Subject -  Ozone Protection and Synthetic Greenhouse Gas Management Act 1989

 

Ozone Protection and Synthetic Greenhouse Gas Management Amendment Regulation 2012 (No. 3)

 

Section 70 of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (the Act) provides, in part, that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

Subsection 45A(1) of the Act provides, in part, that regulations may be made that:

 

The Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995 (the Principal Regulations) require persons taking certain actions with respect to substances listed under Schedule 1 of the Act, or with respect to refrigeration and air conditioning or fire protection equipment containing these substances, to hold a licence. The Principal Regulations specify fees to accompany applications for these licences. These fees have been unchanged since 2004.

 

The Ozone Protection and Synthetic Greenhouse Gas Management Amendment Regulation 2012 (No. 3) (the Amendment Regulation) increases the permit application fees specified in the Principal Regulations on 1 January 2013. The increases are consistent with the most recent Ozone Protection and Synthetic Greenhouse Gas Management Program - Cost Recovery Impact Statement which covers the period January 2012 to June 2016.

 

The Wage Price Index has been used as the basis for the fee increases as the majority of expenses that make up the cost of assessing and processing the licences are labour and on-costs. This ensures that the permit application fees accurately reflect the cost of administering the refrigeration and air conditioning and fire protection industry permit schemes. An annual fee increase consistent with the Wage Price Index will occur on 1 January each year, with the first annual fee increase to occur on 1 January 2014.

 

The Amendment Regulation commences on 1 January 2013. This allows for a short period in which to provide advice on the fee increases to the industry members via the websites of the industry boards.

 

The Act specifies no conditions that need to be satisfied before the power to make the regulation may be exercised.

 

Details of the Amendment Regulation are set out in Attachment A.

 

The statement of compatibility with human rights is at Attachment B.

 

The Amendment Regulation is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

 

Authority:  Section 70 of the Ozone Protection

 and Synthetic Greenhouse Gas

 Management Act 1989


 


ATTACHMENT A

Details of the Ozone Protection and Synthetic Greenhouse Gas Management Amendment Regulation 2012 (No. 3)

Section 1 - Name of Regulation

 

This section provides that the title of the regulation is the Ozone Protection and Synthetic Greenhouse Gas Management Amendment Regulation 2012 (No. 3).

 

Section 2 - Commencement

This section provides for the Amendment Regulation to commence on 1 January 2013.

 

Section 3 - Amendment of the Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995

 

This section provides that the Principal Regulations are amended as set out in Schedule 1.

 

Schedule 1 - Amendments

 

Item [1] - after paragraph 121(1)(c)

 

This item inserts a note to indicate that the application fees are located in a new division (6A.4A).

 

Item [2] - Subregulation 306(3)

 

This item removes the reference to the application fee for a destruction facility (a facility approved under Regulation 306 that destroys extinguishing agent) approval and inserts a reference to a new regulation 345 which specifies the application fee.

 

Item [3] - after paragraph 313(1)(b)

 

This item inserts a note to indicate that the application fees are located in the new division 6A.4A.

 

Item [4] - Subregulation 342(1A)

 

This item removes the reference to the application fee for special circumstances exemption and inserts a reference to the new regulation 345 which specifies the application fee.

 

Item [5] - Subregulation 342(1)(b), note

 

This item inserts a note to indicate that the application fees are located in the new division 6A.4A.

 

Item [6] - Division 6A.4

 

This item inserts the new fees for the following refrigerant and air conditioning (RAC) permit application fees and fire protection industry permit application fees and other application fees in relation to fire protection:

 

Regulation 343:

 

In relation to application fees for a refrigerant trading authorisation or RAC equipment manufacturing authorisations:

*      an application fee for an authorisation has become $210 (from $160);

*      an application fee for a restricted trading authorisation has become $130 (from $100); and

*      an application fee for a halon special permit for a two year period has become $250 (from $200).

 

Regulation 344:

Application fees for paragraph 313 (1) (b) have become:

*      for an extinguishing agent handling licence granted under regulation 321:

*         if the application is for one licence which is to be in force for 12 months or less--$125 (from $100); or

*         in any other case--$250 (from $200);

*      for an extinguishing agent trading authorisation granted under regulation 331 for a period of no more than 24 months --$420 (from $300); and

*      for a halon special permit granted under regulation 341 for a period of no more than 12 months --$250 (from $200).

 

Regulation 345:

This regulation sets out those fees for other fire protection applications which have remained unchanged and that are not subject to indexation as specified in the new Regulation 346.

 

Regulation 346 has been inserted to set out the arrangements for an annual increase in the application fees for RAC industry permits, and fire protection industry permits (other than special circumstances exemptions and extinguishing agent destruction facility approvals). The increase is indexed to the Wage Price Index (Reference: Australian Bureau of Statistics 6345.0 - Wage Price Index, Australia) and will occur from 1 January 2014.


 

 

The following is a worked example based on:

*         a fee of $100;

*         the earlier Wage Price Index = 105.7 (using the September 2010 figure as an example); and

*         the latest Wage Price Index = 109.5 (using the September 2011 figure as an example).

 

The new fee           = ($100 X 109.5) divided by 105.7

                               = $103.60

 

Applying the new subregulation 346(3), the fee would be rounded to the nearest dollar. In the example above, this would be $104.

 

Where the amount of cents to be rounded is 50, then the cents are rounded up to the next dollar (subregulation 364(4)). For example, an amount of $103.50 would be rounded up to $104.00.

 

The indexed increase is required because the fees have not been adjusted since the beginning of the refrigeration and air conditioning and fire protection industry permit schemes in 2004 and will need to accurately reflect the costs of administering the scheme over the coming period.

 

The Board of the Australian Refrigeration Council has endorsed the proposed increases to permit fees and future indexing arrangements. The Australian Refrigeration Council is the Industry Board, appointed by the Minister under paragraph 120(2)(a) to administer the applications for RAC industry permits. It consists of individuals that represent industry organisations covering automotive and stationary refrigeration and air conditioning businesses, contractors, and refrigerant wholesalers.

 

The Fire Protection Industry Board has endorsed the proposed increases to permit fees and future indexing arrangements. The Fire Protection Industry Board is the Industry Board, appointed by the Minister under paragraph 311(1)(a) to administer the applications for fire protection industry permits. It consists of individuals that represent industry bodies covering businesses, technicians, contractors, equipment importers and wholesalers.

 

Item [7] - Further amendments--omissions

Subregulations 130(1) and (2), which dealt with application fees for refrigerant handling licences, have been omitted. Fees for applications of this kind are now dealt with in new subregulation 343(a).

 

Subregulations 140 (2) and (2A), which dealt with application fees for refrigerant trading authorisations, have been omitted. Fees for applications of this kind are now dealt with in new subregulation 343(b) and (c).

 

Subregulation 150 (2), which dealt with application fees for halon special permits, has been omitted. Fees for applications of this kind are now dealt with in new subregulation 343(d).

 

Subregulations 321 (1) and (2), which deal with application fees for extinguishing agent handling licences, have been omitted. Fees for applications of this kind are now dealt with in new subregulation 344(a).

 

Subregulation 331 (2), which deals with application fees for extinguishing agent trading authorisations, have been omitted. Fees for applications of this kind are now dealt with in new subregulation 344(b).

 

Subregulation 341 (2), which deals with application fees for halon special permits, have been omitted. Fees for applications of this kind are now dealt with in new subregulation 344(c).


 

ATTACHMENT B

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

 

Ozone Protection and Synthetic Greenhouse Gas Management Amendment Regulation 2012 (No. 3)

 

This Legislative Instrument 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 Legislative Instrument

 

The Legislative Instrument makes amendments to the Ozone Protection and Synthetic Greenhouse Gas Management Regulations 1995 to increase the application fees for the grant of all types of refrigerant and air conditioning and fire protection permits.

 

The intent of the amendment is to increase the cost of applying for these permits and to put in place indexation in future years to ensure that the fees cover the cost of administering both schemes. The fees have not been reviewed since the prescribing of the fees in 2004 and they no longer cover the cost of administering either scheme.

 

Human rights implications

 

This Legislative Instrument does not engage any of the applicable rights or freedoms.

 

Conclusion

 

The Legislative Instruments are compatible with Australia's human rights obligations.

 

 

 

 

Senator the Hon Don Farrell, Parliamentary Secretary for Sustainability and Urban Water

 

 


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