Commonwealth Numbered Regulations - Explanatory Statements

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TRADESPERSONS' RIGHTS (COST RECOVERY) AMENDMENT REGULATIONS 2003 (NO. 1) 2003 NO. 104

Section 51A of the Tradesmen's Rights Regulation Act 1946 provides that the Governor-General may make regulations for the purpose of reimbursing the Department of Employment and Workplace Relations for costs incurred in relation to trade testing services and the provision of trade certificates.

The Tradespersons' Rights (Cost Recovery) Regulations (the Principal Regulations) were made pursuant to section 51A of the Act. Subregulation 3(1) imposes a fee for an application by an Australian resident for an Australian Recognised Trade Certificate.

The Department also conducts trades assessments for prospective migrants. Both the standard and optional priority application fees for these assessments are prescribed by the Migration Regulations 1994.

At the time subregulation 3(1) of the Principal Regulations was made the fee of $390 was appropriate to enable the Department to recover the relevant costs.

Since then, the number of applications from prospective migrants has substantially increased, and the Department has improved its performance. As a result, the fees now generate a total annual profit of $1.5 million.

In its 2002 report `Cost recovery by Government Agencies' the Productivity Commission recommended that cost recovery fees should not make a profit as cost recovery activities that make a profit may be vulnerable to challenge as a form of taxation. The Government has agreed to this recommendation. Accordingly, the Minister has approved a reduction in the fee from
1 July 2003 from $390 to $300. The Regulations implement this fee reduction.

The regulations also amend the Principal Regulations to include 1993 in the citation.

Details of the regulations are in the Attachment.

The regulations commence on 1 July 2003.

0303655A

ATTACHMENT

TRADESPERSONS' RIGHTS (COST RECOVERY) AMENDMENT REGULATIONS 2003 (NO. 1)

Regulation 1 - Name of regulations

This is a formal provision that provides the name of the Regulations.

Regulation 2 - Commencement

Regulation 2 provides that the Regulations commence on 1 July 2003.

Regulation 3 - Amendment of Tradespersons' Rights (Cost Recovery) Regulations

Regulation 3 provides that Schedule 1 amends the Tradespersons' Rights (Cost Recovery) Regulations.

SCHEDULE

Schedule 1 - Amendments

Item 1 of Schedule 1 inserts a date of citation into the Tradespersons' Rights (Cost Recovery) Regulations.

Item 2 of Schedule 1 provides that the application fee payable to the Department for a trade certificate is reduced from $390 to $300.