Commonwealth Numbered Regulations - Explanatory Statements

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TRADE PRACTICES AMENDMENT REGULATIONS 2000 (NO. 1) 2000 NO. 163

EXPLANATORY STATEMENT

Statutory Rules 2000 No. 163

Issued by the authority of the Minister for Financial Services and Regulation

Trade Practices Act 1974

Trade Practices Amendment Regulations 2000 (No. 1)

Section 172 of the Trade Practices Act 1974 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters that are required or permitted by the Act to be prescribed or are necessary or convenient to be prescribed for carrying out or giving effect to the Act.

Part VB of the Act prohibits price exploitation in relation to the New Tax System. 'New Tax System' refers to the Government's package of tax changes being implemented in conjunction with the introduction of a Goods and Services Tax and the abolition of the Wholesale Sales Tax system. Section 75AT of the Act defines a number of words and phrases used in Part VB of the Act. 'New Tax System changes' is defined to include 'any other changes (including changes to Commonwealth, State or Territory laws) prescribed by the regulations for the purposes of this definition' (section 75AT).

The Act further provides for regulations to be made for the Australian Competition and Consumer Commission (the Commission) to charge parties to an arbitration for its costs in conducting an arbitration and to apportion these charges between parties for hearings in relation to access to essential services (section 44ZN) and the telecommunications access scheme (section 152DM). The Act also provides for regulations prescribing fees payable to the Commission on making an application to the Commission under the Act (s. 172(1)). Parties may apply to the Commission to register a contract for access to declared services (s. 44ZW) and to register an agreement for access to declared services (s. 152ED).

The purpose of the new Regulations is to amend the Trade Practices Regulations 1974 (the Principal Regulations) to prescribe 'New Tax System changes' to be included for the purposes of section 75AT of the Act and to increase certain arbitration charges by the Commission to reflect the introduction of the goods and services tax.

The definition of 'New Tax System changes' was adopted to allow all other changes in Commonwealth, State or Territory taxes identified as part of the overall tax reform package to be incorporated into the prohibition against price exploitation in subsection 75AU(1) of the Act. These other 'New Tax System changes' prescribed include:

* changed excise rates for alcohol and petroleum products to commence on 1 July 2000. The alcohol excise rate changes are to be. given effect by Excise Tariff Proposal No. 2 (2000) under the Excise Tariff Act 1921 and Customs Tariff Proposal No. 2 (2000) under the Customs Tariff Act 1995. The petroleum products excise rate changes are to be given effect by Excise Tariff Proposal No. 3 (2000) under the Excise Tariff Act 1921 and Customs Tariff Proposal No. 4 (2000) under the Customs Tariff Act 1995 (Schedule 1, item 15, new regulations 52 and 53);

* changed rates in respect of the diesel fuel rebate, scheme, effective 1 July 2000. These        changes are to be effected by Notice of Declared Rate in respect of Diesel Fuel Rebate, Notice No. 2 (2000), under both the Customs Act 1901 and the Excise Act 1901 (Schedule 1, item- 15,

new regulation 54);

* grants will be paid for the on-road use of diesel and alternative fuels to all vehicles over 20 tonnes gross vehicle mass, and to regional transport vehicles between 4.5 and 20 tonnes        gross vehicle mass that undertake their operations in service of regional areas. This scheme is to commence on 1 July 2000, and was effected by the Diesel and Alternative Fuels Grants Act 2000 (Schedule 1, item 15, new regulation 55);

* the introduction of a fuel sales grants scheme from 1 July 2000, allowing a tiered grant system        to be paid to retailers of petrol and diesel in non-metropolitan and remote areas, effected by the Fuel Sales Grants Act 2000 (Schedule 1, item 15, new regulation 56);

* a new wine equalisation tax from 1 July 2000 under the A New Tax System (Wine Equalisation Tax) Act 1999, the A New Tax System (Wine Equalisation Tax Imposition - Customs) Act 1999, the A New Tax System (Wine Equalisation Tax Imposition - Excise) Act 1999, and the A New Tax System (Wine Equalisation Tax Imposition - General) Act 1999 (Schedule 1, item 15, new regulation 50);

* the removal of the accommodation levy in New South Wales by the State Revenue Legislation        Further Amendment Act 1999, which received Royal Assent on 24 November 1999 (Schedule 1, item 15, new regulation 5 1); and

* the ending of the requirement for State Government Business Enterprises to pay wholesale sales tax equivalency payments (Schedule 1, item 15, new regulation 57).

Previously, in connection with the introduction of the luxury car tax, the A New Tax System (Luxury Car Tax Imposition - Customs) Act 1999 and the A New Tax System (Luxury Car Tax Imposition - Excise) Act 1999 were prescribed for the purposes of section 75AT of the Act. For consistency, the Regulations also prescribe the A New Tax System (Luxury Car Tax) Act 1999 and the A New Tax System (Luxury Car Tax Imposition - General) Act 1999.

In addition, the Regulations increase various pre-hearing, hearing and application fees for the purposes of Part IIIA of the Act (access to services) and Part XIC of the Act (the telecommunications access regime). These fees are subject to the Goods and Services Tax. The fees prescribed are amended to reflect a net 8.5 per cent increase as a result of the New Tax System changes.

The Regulations commence on 1 July 2000.


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